Global Retail Outlook Trends and Innovation
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1 Global Retail Outlook Trends and Innovation Presented by Paul Martin Managing Director, Boxwood Insights Paris, 27th November 2013
2 Global Retail Outlook Trends and Innovation Paul Martin Managing Director, Boxwood Insights Paris, 27th November 2013
3 Who is Boxwood? Boxwood is a no-nonsense consultancy that partners with ambitious CEOs and their teams to unlock the potential in their business. We are an award-winning company known for delivering unreasonable results the kind of tangible results that many consultancies would neither attempt nor believe possible. We hire experienced people from industry and consulting who work closely with the client s team and bring immediate and practical advice. They have the insight and expertise to solve complex problems, they know how to build consensus around knotty issues and they know how to deliver fast. Our successes include Delivering 700m in cost savings by transforming the operations, trading and supply chain of a top-four UK supermarket Designing and delivering an awardwinning capability development programme to transform the product to market approach for a major UK highstreet retailer Working with an international retail franchise to develop a five-year strategy to quadruple revenue Implementing a global expansion strategy with the fashion brand of a major retail giant
4 Our clients & services Services we offer: Strategic review Operational due diligence Business transformation Turnaround Business & operating model design International expansion Acquisition integration Capability development
5 An award-winning consultancy We are acknowledged by our clients and our industry as exceptional. Best Companies Accreditation 2013 MCA Awards 2013: Shortlisted Change Management in the Private Sector MCA Awards 2012: Change Management in the Private Sector MCA Awards 2011: Platinum Award; Change Management in the Private Sector; Operational Performance in the Private Sector
6 2. Retail 2017 in numbers
7 2. Consumer drivers are changing rapidly
8 2. Global Rankings (in USD bn)
9 3. Top trends
10 Trend 1: Omni-channel Cannibalisation & profit killer? Omni-channel retailing is the most advanced form and will be driven by the rapid growth of online retail sales. Omni-channel Retailing Multi-channel Retailing Single-channel Retailing Assumptions: Online sales including online driven sales are set to reach around 50% by 2020 Mobile is set to reach 50% of Online Sales by 2020 Source :
11 Trend 1: Omni-channel Cannibalisation & profit killer? Amazon & Co Op UK L Oreal, US P&G & WalMart, US Tesco, UK
12 Trend 1: Omni-channel Cannibalisation & profit killer? Many things can go wrong Shopper power Do not forget the store No silos one business 100% price transparency Fulfillment is key Declining profits
13 Trend 2: Small box The death of big box? Well executed small box concepts Duane Reade USA Walmart Mexico Rewe Germany Waitrose UK Casino Columbia 7-11 USA
14 Trend 2: Small box The death of big box? Big box fights back M&S, UK Bass Pro Shops, USA Carrefour, ITM, France WalMart USA
15 Trend 3: Innovation Who dares wins Innovation = change We can t keep up with the pace of change, let alone get ahead of it. ( )Today any company that isn t rethinking its direction at least every few years as well as constantly adjusting to changing contexts and then quickly making significant operational changes is putting itself at risk. But, as any number of business leaders can attest, the tension between needing to stay ahead of increasingly fierce competition and needing to deliver this year s results can be overwhelming. John P. Kotter Harvard Business Review
16 Trend 3: Innovation Who dares wins Unilever, UK Tesco, UK Uniglo, USA
17 Trend 3: Innovation Who dares wins Audi City London: A concept for a store of the future
18 Trend 3: Innovation Who dares wins Emart South Korea: Innovative promotion campaign
19 4. Conclusions 1. Having an Omni-channel strategy is fundamental for every retailer today. Do not underestimate the execution and being successful requires a transformation of your business. 2. Small box concepts are the fastest growing across the globe. Consumers are demanding convenience and proximity - retailers need to have a solution for this. Big box retailing still has a role to play but space utilisation and dwell time concepts have to be reconfigured. 3. Competition and today s pace of change requires innovation. Retailers that are not constantly thinking about innovating store concepts, promotions, customer Experience and the path to purchase will face challenging times. 4. Be brave and think about tomorrow today and seek assistance from transformation experts.
20 Paul Martin Managing Director, Boxwood Insights Boxwood Ltd 15 Old Bailey London EC4M 7EF United Kingdom Tel:
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