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AN EXCLUSIVE RETAILWIRE WEBINAR, SPONSORED BY:

Al McClainCEO, Co-founder, RetailWire

Al McClain has spent 30+ years in the retail, tech, and CPG spaces. Al's career highlights include sales and management stints with Luzianne-Blue Plate Foods, Bestfoods, Red Rose Tea, and Progressive Grocer (Trade Dimensions and Retail Insights divisions).

Al has also spoken extensively at industry events for the National Grocers Association, the Institute for International Research, the Magazine Publishers Association, and the Category Management Association. He has written for publications such as Nielsen Wire, Loyalty Management, and Forbes.com.

Moderating

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Presentation (25 min)

Cyber Week Debrief – How is the online holiday season shaping up• Ken Cassar, VP, Principal Analyst, Slice Intelligence

Panel discussion (20 min)• Ken Cassar, VP, Principal Analyst, Slice Intelligence• Sarah Engel, Chief Marketing Officer, DynamicAction• Julie Bernard, Chief Marketing Officer, Verve

Audience Q&A (10 min)

Today’s agenda

Ken CassarVP, Principal Analyst, Slice Intelligence

Ken oversees Slice's research agenda, identifying and contextualizing e-commerce industry trends from Slice's panel of over 4 million U.S. online consumers.

Ken brings a rich online retail background to Slice Intelligence. Most recently, he was the senior vice president, media analytic solutions at Nielsen, where he developed several innovative digital commerce measurement and advertising effectiveness solutions.

Prior to Nielsen, Ken was an analyst at Jupiter Research, where he was an early thought leader, trusted adviser and media source on e-commerce. His prescient outlook on fledgling e-commerce industry was a key contributor to Jupiter’s dominance as a digital media zeitgeist at the dawn of the Internet.

Our presenter

Slice Intelligence confidential. Do not copy or distribute without prior written consent.Slice Intelligence confidential. Do not copy or distribute without prior written consent.

Cyber Week debriefHow is the online holiday season shaping up?

Slice Intelligence confidential. Do not copy or distribute without prior written consent.7

Agenda

1. holiday e-commerce sector performance

2. retailer winners and losers

3. the last mile

Slice Intelligence confidential. Do not copy or distribute without prior written consent.

Slice Intelligence at a glance

8

• who made the purchase

• what was bought

• where it was bought

• when it was bought

• how much was paid

• how quickly it was shipped

largest consumer

e-commerce

purchase panel in the

world

passive tracking of

e-commerce sales from

consumer inboxes

across all platforms

longitudinal tracking of

the consumer, with

two years of history

we know:


the online holiday season has historically been dominated by Cyber Week

9

time aligned daily online salesNov 1 – Dec 31

2015 2016

Black Friday

Cyber Monday

12/19/16


in 2017, Cyber Week sales were up 18 percent

10


2015 2016 2017

Black FridayCyber Monday

12/19/16

+18%

growth from 2016

comp. to 2016 on key days• Thanksgiving +24%

• Black Friday +18%

• Saturday 11/26 +36%

• Cyber Monday +11%


but a strong early start led to November growth of 24 percent

11


2015 2016 2017


12/19/16

+27%

growth from 2016

Audience Poll Question

What do you think principally drove Cyber Week growth?


how did we achieve 18 percent Cyber Week sales growth?

13

cyber week buyers

+14%average order value

+1%

order frequency

+2%


electronics dragged down overall e-commerce. apparel more than compensated

14

Gift Cards

Jewelry & Watches

Media

Sports & Outdoors

Tools & Home Improvement

Toys & Games

Shoes

Home & Kitchen

Apparel & Accessories

Electronics & Accessories

growth in key holiday categories

Nov 2016 v. Nov. 2017

2017 2016

+13%

+30%

+32%

+19%

+26%

+44%

+45%

+6%

+23%

+18%

Slice Intelligence confidential. Do not copy or distribute without prior written consent. 15


mall specialty and department store malaise isn’t limited to offline

16

9%

10%

6%

2%

73%

share of Cyber Week sales2017

mass discount department stores mall specialty apparel club all other

0% 10% 20% 30% 40% 50%

mass discount

department stores

mall specialty

club

all other

Cyber Week growth2016 v. 2017


key retailer performance during November

17

+27%+27%

+47%

+15%

+19% +26%

+49%

+39%


Amazon’s holiday share is daunting…

18

2017 holiday share

November

change from 2016

Amazon 32.0% + .9%

Best Buy 4.4% + .1%

Target 3.1% + .5%

Walmart 3.0% + .3%

Apple 2.1% - .1%

Macy’s 2.0% + .1%

Nordstrom 1.8% - .1%

Home Depot 1.3% 0%


in 2016, Amazon’s share increased as Christmas drew closer

19

0%

10%

20%

30%

40%

50%

60%

Amazon share of online holiday sales2016

Black Friday

Cyber Monday

Thanksgiving

12/19/16


…and it seems that we’ll see the same in 2017

20

0%

10%

20%

30%

40%

50%

60%

Amazon daily share of online holiday sales2016 and 2017 YTD

2016 2017

Black Friday

Cyber Monday

Thanksgiving

12/19/1

6


packages are reaching consumers faster than ever

22

0

1

2

3

4

5

6

7

8

9

10

Jan. 2015 Jan. 2016 Jan. 2017 Oct. 2017

average click to doorstep duration(all merchants excl. Amazon and Walmart)

Oct. 2015

7.4 daysOct. 2016

6.5 days

Oct. 2017

5.1 days


…exclusively powered by quicker shipping

23

0

1

2

3

4

5

6

7

8

9

10

Ja

n-1

5

Fe

b-1

5

Ma

r-1

5

Ap

r-1

5

Ma

y-1

5

Ju

n-1

5

Ju

l-1

5

Au

g-1

5

Se

p-1

5

Oc

t-1

5

Nov-1

5

Dec

-15

Ja

n-1

6

Fe

b-1

6

Ma

r-1

6

Ap

r-1

6

Ma

y-1

6

Ju

n-1

6

Ju

l-1

6

Au

g-1

6

Se

p-1

6

Oc

t-1

6

Nov-1

6

Dec

-16

Ja

n-1

7

Fe

b-1

7

Ma

r-1

7

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oc

t-1

7

‘click to ship’ and ‘ship to door’ durationall merchants excluding Amazon

click to ship ship to door

1.9

days

6.0

days

2.0

days

4.9

days

2.0

days

3.0

days


…but Amazon still maintains a significant lead

24

0

1

2

3

4

5

6

7

8

9

10

Jan. 2015 Jan. 2016 Jan. 2017 Oct. 2017

average click to doorstep duration

(in days)

all merchants (excl. Amazon) Amazon


Amazon’s improvement has come equally from warehouse and shipping improvements

25

0

1

2

3

4

5

6

7

8

9

10

Ja

n-1

5

Fe

b-1

5

Ma

r-1

5

Ap

r-1

5

Ma

y-1

5

Ju

n-1

5

Ju

l-1

5

Au

g-1

5

Se

p-1

5

Oc

t-1

5

Nov-1

5

Dec

-15

Ja

n-1

6

Fe

b-1

6

Ma

r-1

6

Ap

r-1

6

Ma

y-1

6

Ju

n-1

6

Ju

l-1

6

Au

g-1

6

Se

p-1

6

Oc

t-1

6

Nov-1

6

Dec

-16

Ja

n-1

7

Fe

b-1

7

Ma

r-1

7

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oc

t-1

7

‘click to ship’ and ‘ship to door’ durationAmazon.com

click to ship ship to door

4.9

days

2.0

days2.4

days

1.4

days

2.3

days

1.0

days.8

days

2.0

days


how important is click-to-door speed? let’s look at a Walmart case study

26

0

1

2

3

4

5

6

7

8

9

10

Jan. 2015 Jan. 2016 Jan. 2017 Oct. 2017

average click to doorstep duration

(in days)

all merchants (excl. Amazon) Amazon Walmart


improvement in click-to-door coincided with a significant improvement in market share

27

0

1

2

3

4

5

6

7

8

9

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Jan.2016

Jan.2017

Oct.2017

WA

LMA

RT

CLI

CK

TO

DO

OR

WA

LMA

RT

ON

LIN

E M

AR

KET

SH

AR

E

Walmart online market share Walmart Click to Door


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Ja

n-1

5

Fe

b-1

5

Ma

r-1

5

Ap

r-1

5

Ma

y-1

5

Ju

n-1

5

Ju

l-1

5

Au

g-1

5

Se

p-1

5

Oc

t-1

5

Nov-1

5

Dec

-15

Ja

n-1

6

Fe

b-1

6

Ma

r-1

6

Ap

r-1

6

Ma

y-1

6

Ju

n-1

6

Ju

l-1

6

Au

g-1

6

Se

p-1

6

Oc

t-1

6

Nov-1

6

Dec

-16

Ja

n-1

7

Fe

b-1

7

Ma

r-1

7

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oc

t-1

7

share of orders fulfilled through click & carry*selected non grocery merchants

28%

21%

25%

click & carry, growing in prominence, alleviates some of the burden on fulfillment systems

• Kohl’s

• Nordstrom

• Sam’s

• Staples

• Target

• JCPenney

• Walmart.com

• Macy’s

• ToysRUs

• Lowe’s

• Meijer


…and consumers are now enjoying big benefits to use click & carry

29


retailers with click & carry need to be ready for significant volumes close to Christmas

30

0%

10%

20%

30%

40%

50%

60%

70%

click & carry as % of online sales

(selected merchants – Nov 1 – Dec 31, 2016)


12/23/16


is click & carry, at scale, ready for prime time?

31


while we pay less attention to it, most holiday sales come AFTER Cyber Monday

32


2015 2016 2017


% of holiday sales after Cyber Monday

• 2015 50%

• 2016 53%

• 2017 ?

thank you

33

www.sliceintelligence.com

Slice information

[email protected]

follow Slice Intelligence on Twitter

@SliceIntel

follow Ken on Twitter

@Kcassar

mailto:[email protected]

Panel discussion: Cyber Week Debrief

Ken CassarVP, Principal Analyst

Slice Intelligence

Al McClainCEO

RetailWire

Sarah EngelChief Marketing Officer

DynamicAction

Julie BernardChief Marketing Officer

Verve

Sarah EngelChief Marketing Officer, DynamicAction

Sarah spent nearly two decades building some of the world’s most notable brands before joining DynamicAction’s executive team. As the brand guide and chief storyteller for the Silicon Valley-based retail technology leader, she heads up marketing strategy, content marketing, digital, lead generation and communications.

Sarah previously served on the executive team and led marketing for a leading private digital marketing agency, Range Online Media, to the point of acquisition. She then took the reins on all marketing for the parent company iProspect.

BrainTrust panelist

Julie BernardChief Marketing Officer, Verve

As chief marketing officer, Julie Bernard leads Verve’s brand strategy, marketing, analytics and creative services.

Julie was previously senior vice president of omnichannel customer strategy, data science, loyalty, and marketing technology at Macy’s, where she was recognized as a customer-centric leader implementing data-driven approaches for strategic growth, including award-winning personalized communications at scale, first-of-a-kind loyalty programs, and modern media attribution techniques.

Julie previously held executive leadership positions at Saks Fifth Avenue and XRoads Solutions Group, a boutique retail consultancy.

BrainTrust panelist


Will Amazon’s market share peak higher this year as we approach the holidays?

QUESTION:There are now perhaps 16 online ordering days left until Christmas. Given the Cyber purchasing behavior we’ve seen so far, what are your top two tactical marketing suggestions for the remainder of the season?

Panel discussion: Online marketplaces

Ken Cassar Sarah Engel Julie Bernard Al McClain


Is price discounting the only factor that really matters in the battle for online holiday market share?

QUESTION:What do you make of the considerable Cyber Week growth seen from Target, Wayfair, Walmart and other discount channel retailers? How should competing segments respond?

Panel discussion: Online marketplaces

Ken Cassar Sarah Engel Julie Bernard Al McClain

thank you

41

www.sliceintelligence.com

Slice information

[email protected]

follow Slice Intelligence on Twitter

@SliceIntel

follow Ken on Twitter

@Kcassar

mailto:[email protected]

For more information

For RetailWire:

Al McClainCEO, [email protected](561) 627-4974

For DynamicAction:

Sarah EngelChief Marketing [email protected]: @edisruptTwitter: @DynamicAction

For Verve:

Julie BernardChief Marketing [email protected]: @juliemeb

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