Leader to Leader

Retail’s BIG Show 2015

Welcome & Introductions

The future is now!

Retail’s big show - nyc

Retail’s big show - nyc

New Boss

I would like to

introduce you to your

new boss!

She’s socially

connected, and

demands a frictionless

shopping experience.

Chief Everything Officer

Trends

1. Transparency

2. Omnichannel

3. The health conscious consumer

4. The customer is “always on”

5. Internal communication

6. Personalization

7. Social Media –Opportunities & Challenges

8. Self serve want it all now

9. Blurring of sectors

10. High Speed Retail

11. Experience over stuff

12. Brand politics

13. Baby Boomers

14. Mass Customization and tailor made products

15. High expectations

15 Trends for 2015

Section 1 Section 2 Section 3

1. Transparency

Edelman’s 2014 Global Study

1. Transparency

68% of respondents want brands to communicate transparency

Chipotle GMO Ingredients

1. Transparency

The Scarecrow1. Transparency

Macy’s goes Omnichannel

2. Omnichannel

• Apple Pay• Same day delivery• Buy online – pick up in

store• POS devices• Enhanced shopping apps

• Macy’s waitlist (offers coupons)

• RFID – Inventory counts• Shopkick• Smart fitting rooms

Macy’s

2. Omnichannel

2. OmnichannelThe intersection of technology and the customer is real.

2. Omnichannel• Holistic thinking• Company’s value position• Integrated messaging• Insight across business units and geography

3. the health conscious consumer

3. the health conscious consumer

73% of adults say they try to eat healthier at restaurants

3. the health conscious consumer

3. the health conscious consumer

Pizza Hut’s Low Cal Pizza

INTRODUCING… SKINNY SLICE PIZZAS FROM PIZZA HUT

IN ADDITION TO THE RECIPES ABOVE, YOU CAN CREATE YOUR OWN SKINNY SLICE PIZZA FOR 300 CALORIES OR LESS PER

SLICE WITH UP TO 5 INGREDIENTS.

5 NEW RECIPES WITH 250 CALORIES OR LESS PER SLICE.

SKINNY BEACH™ Premium crushed tomato sauce topped with grilled chicken, fresh

red onions, Peruvian cherry peppers and fresh spinach.

It’s gotten a lot easier to cut calories at Pizza Hut, with portion controlled Skinny Slice Pizzas –

lower in calories but still packed with flavor.

200 CALORIES PER SLICE

SKINNY WITH A KICK™ Premium crushed tomato sauce topped with pepperoni, sliced

jalapeño peppers, Peruvian cherry peppers, fresh green bell

peppers and fresh red onions - flavored up with fiery red pepper on

the crust edge.

230 CALORIES PER SLICE

SKINNY ITALY Classic marinara sauce topped with classic meatballs, diced Roma

tomatoes, fresh mushrooms, fresh red onions and fresh spinach -

flavored up with a balsamic drizzle.

220 CALORIES PER SLICE

SKINNY LUAU™ Premium crushed tomato sauce topped with grilled chicken,

slow-roasted ham, fresh green bell peppers and sweet pineapple.

210 CALORIES PER SLICE

SKINNY CLUB™ Creamy garlic Parmesan sauce topped with grilled chicken,

slow-roasted ham, diced Roma tomatoes and fresh spinach -

flavored up with toasted Asiago on the crust edge.

230 CALORIES PER SLICE

SKINNY LUAU™

SKINNY BEACH™

SKINNY CLUB™

SKINNY ITALY

SKINNY WITH A KICK™

Instead of thinking about next month or next quarter, the focal point for the winners will be today.Example: American Airlines On average, they respond within 10 minutes to customers

Some companies have separate customer service twitter handles: @NikeSupport, @ComcastCares

4. The Customer is Always On

4. The Customer is Always On

“Culture eats strategy for lunch”

-Terry JonesTravelocity

5. Internal communications

Companies will want their employees to be the best brand ambassadors and will work harder to make sure that employees and vendors understand and the live the vision and strategy of the company.

“What got Home Depot from zero to $50 billion in sales wasn’t going to get it to the next $50 billion.”

5. Internal communications

The Home Depot Chairman Frank Blake was honored with NRF's Gold Medal award for returning the company’s culture to its original employee- and customer-focused form, embracing the future of interconnectivity, and spearheading a redesign of a supply chain during the economic downturn.

5. Internal communications

5. Internal communications

• He invited conflict in decision making.

• He walked the floor two days a week.

• He took responsibility.

• He focused on the customer.

• He increased the bonus pool.

• He removed the barriers.

• He listened.

5. Internal communications

5. Internal communications

Break& discuss

This is not a trend - its a marketing tsunami, here to stay, which will transform everything. It will become more regionalized, and more localized, even more individualized, as consumers resist homogenization. This means that local companies will need to work even harder to know their customer base because the big brands will be working hard to come in and take that market share and will have the tools to do so. Ulta Beauty, whose new mobile app engages both employees and consumers for a highly customized shopping experience.

6. personalization

6. personalization

6. personalization

Ulta Beauty App6. personalization

Opportunities and Challenges. The economics of marketing in a digital world will challenge marketers. Because smart content creation should be native to the digital channel that reaches the audience, the single biggest challenge that marketers will need to solve is to scale content in an economic way.

7. SOCIAL MEDIA

Fast food restaurants have people order their own food on touch screens (White Castle, McDonalds)

8. Self serve

La Guardia Terminals

8. Self serve

Bookshops selling coffee, coffee shops selling music, supermarkets selling loans, Ralph Lauren selling paint

9. Blurring of sectors

9. Blurring of sectors

9. Blurring of sectors

10. High speed retailBack in 1900 people slept for 9.0 hours every night.

Now it’s just 6.9 hours.

10. High speed retail

Drive Thru EVERYTHING!

This is driving trends like drive-by dining, mobile banking and it’s also killing giant malls, which take too much time to shop.

10. High speed retailEqually, people are getting increasingly bored with the same brands

in the same places, which in turn is driving ‘pop-up’ retail and ‘limited time only’ products and offers.

Break& discuss

11. Experiences over stuff

11. Experiences over stuff

11. Experiences over stuff

Teavana in the App Store

12. Brand politics

We've already got sweat shop free clothing brands, the return of neighborhood retail and anti-supermarket sentiments, but we haven't seen anything yet. In the future, customers will be interrogating brands online and scanning products in supermarkets with mobile phones to check on the ethical policy of brands.

12. Brand politicsEthically based retail concepts will grow in the future.

12. Brand politics

12. Brand politics

13. Baby boomers

It's someone's 50th birthday every 8 seconds in the US but retailers are still obsessively focused on young people. A study by Credit Suisse First Boston, for example, found that in the US there are 7700 clothing chains selling to the teen market (with a theoretical sales of $5.8 million per store) but only 1800 with theoretical sales of US $19.2 million per store targeting baby boomers.

13. Baby boomers

As populations age more people will want to spend more time at home and they will want to make their lives as comfortable as possible. Designing signage, food packaging and everything so they can handle things is also important.

14. Mass customization and tailor-

made projects

Something made just for you. Products created for specific niches and groups, often with the help of customers themselves.

14. Mass customization and tailor-

made projects

14. Mass customization and tailor-

made projects

15. High Expectations

The future is now!