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NEW YORK – LOS ANGELES

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TGC Overview

We transform businesses through

Strategy Development

Execution & Implementation

Providing unparalleled experience & expertise to retailers, digital commerce,

service industries, brands, investors, wholesalers and manufacturers

Assessment &Diagnostics


Why We’re Different

EXPERIENCEWe’ve been in this business our entire lives, so we know how to study the problem and identify the issues. We’ve built world-class companies from scratch, resulting in deep, first-hand experience.

EXPERTISEOur project teams are comprised of high-caliber, senior executives with deep expertise and proven track records across a range of functional areas.

CURIOSITYWe have a “culture of curiosity” that keeps our perspective and our solutions relevant and effective. We learn from both our successes and mistakes.

ROI DRIVENOur focus isn’t creating huge presentation decks or theoretical solutions. We work side by side with you to produce tangible results.

DATA OBSSESEDBusinesses today often think they “know.” We study the facts objectively, analyze situational data and combine these learnings with research to arrive at informed conclusions.

DIRECTHearing the truth can be painful, but ignoring it can be fatal. We provide candid assessments with strategic solutions based on facts, research and experience.


Kevin Mullaney, CEO

Kevin spent the early years of his retail career in senior management roles in the department store, specialty chain and wholesale channels. As part of the early management team at Tommy Hilfiger, he was instrumental in the growth of that business from USD$200M to USD$2B. Kevin leads complex client engagements leveraging his experience and expertise in productivity, profit and process improvement to successfully accomplish turnarounds for public and private companies, while leading strategy for newly emerging brands as well.Kevin succeeded Bob Grayson as CEO when Bob retired in [email protected]

Our Team

David Ball, President

David is an expert in business transformation, technology, and capability development. He designed the retail industry’s first digital merchandise planning system and was an early adaptor of advanced data analytics for marketing and customer engagement. David developed McKinsey’s practice in technology-enabled strategy, from which they launched their renowned global Business Technology Offices. David has been with TGC since 2009 and serves as the President and head of the TGC West Coast division in Los Angeles.

[email protected]

mailto:[email protected]

mailto:[email protected]


Our Team

Beth Lavine, Consumer Research

Beth is a seasoned executive with over 30 years of hands on retail and wholesale experience. In the 10 years since joining TGC, Beth has developed and grown our consumer insights group which informs our assessment and due diligence projects. The research Beth conducts is developed exclusively in house and customized to each client’s specific needs offering vital and actionable insights into consumer preferences, demographic segments, and the dramatic shifts in consumer behaviors. Prior to joining TGC Beth worked in merchandising and planning analytics for retail and wholesale national companies including The Limited, Burdines’s (now Macy’s), and a leading specialty toy wholesaler.

Nicole Gardner, Digital Strategy

Nicole is a proven operator, growth driver, and innovator who has worked with both startup and established brands to help them create, evolve and scale. Highly skilled in digital commerce, Nicole was the co-founder of Dormify where she built and scaled the brand as its Chief Operating Officer. She has recently worked with Milly and Saturdays NYC, in addition to a mix of startups in the fashion, beauty, and CPG spaces. Earlier, she drove digital innovation through branded experiences and marketing at integrated creative agency HZDG.


Bubbles Bott, Sourcing & Strategy

Bubbles is an accomplished senior executive with thirty-five years of extensive experience in multiple facets of the fashion Industry. Bubbles has held senior level positions in major fashion and retail companies throughout her career. Bubbles career included the launch of Tommy Hilfiger where she helped to lead its meteoric rise in the fashion industry both as the head of production and as President of Tommy Hilfiger Womenswear and Tommy Jeans. Operationally, she has built “speed to market” sourcing models for large scale customers such as PVH.

Susan Napolitano, Executive Search

Susan Napolitano has over fifteen years of experience recruiting C-Suite and other senior level executives across multiple channels and tiers of Consumer distribution including Retail, Digital Commerce, and Brands. Susan’s experience includes working within Human Resources and Talent Acquisition at Macy’s, Walmart Inc., and Ross Stores, prior to transitioning to Executive Search. Susan has a comprehensive and contemporary understanding of the complex organizational requirements necessary in today’s highly competitive Retail, Brand, Services and Consumer businesses.

Our Team


ASSESSMENTDUE DILLIGENCE

DIAGNOSTICSOPPORTUNITY MATRIX

STRATEGY DEVELOPMENTGOALS

BUSINESS PLANROADMAP

DIGITAL TRANSFORMATIONSTRATEGY

TECHNOLOGYCUSTOMER EXPERIENCE

ACTION & RESULTSIMPLEMENTATION

PRODUCTIVITY ROI

STAFF & STRUCTUREORGANIZATIONAL ENGINEERING

EXECUTIVE SEARCHBENCHMARKING

RESEARCHCONSUMER INSIGHTS

DIGITAL / SOCIAL LISTENINGMARKETPLACE ANALYSIS

DATA ANALYTICSA.I / MACHINE LEARNING

ASSORTMENT RATIONALIZATIONPRODUCTIVITY / CRM ANALYSIS

DIGITAL ANALYTICS

THE WORK WE DO


Organization • Management team

and culture• Organizational structure• Performance

Evaluation AnalysisInsights

RecommendationsImplementation

Financial Assessment• Metrics and benchmarks• Full P&L review

Strategy• Brand • Channels • Omni-channel• Wholesale / Retail• International

Marketing• Digital • CRM• CXM• Media

Operations & Supply Chain • Infrastructure• Facilities • Sourcing• Network

Systems• Business – IT alignment• IT value management• Performance management• AI + Machine Learning toolsets

Digital• Digital footprint• Social media• Platform and systems• Channel harmonization

Real Estate• Site location strategy• Site potential assessment

Competitive Analysis• Marketplace• Peer analysis• Pricing Brand & Customer

Experience • Customer journey & engagement• Building brand equity

ASSESSMENTKey elements of Client Engagements

“ We may use the big firms to get financing, but we use TGC to determine if we should buy the company” ~~ Managing Partner, Global PE Firm


Consumer Insights• Customer intercepts / surveys

• Social listening and digital intercepts

• Integrated demographic and psychographic analysis

Marketplace Intelligence• Market sizing & segmentation

• Key channels of distribution

• Competitive product, pricing, positioning

• Store & web audits

Merchandise Analysis• Comprehensive merchandise

analysis

• Store-level sales and KPIs

• Cross-channel analysis (retail, wholesale, e-commerce, etc.)

Specialty Research• Forensic Research

• Interviews with influencers

• Interviews with retailers/ brands

• Store design & concept testing

• Productivity drivers testing

RESEARCHActionable Insights

Our research is completely customized to ensure the application of the right tools and yield the most comprehensive, actionable insights for each engagement

“It’s not enough to just have customer insights, TGC helps us know what actions we can take to leverage those insights”~~ CEO Global PE firm


STRATEGY DEVELOPMENTThe TGC ProcessFresh perspectives, assessments-based data and judgement. These drive our strategic consulting practice. We build practical, insightful and actionable strategic plans. We understand both the “forest and the trees”. We think long and short-term and most importantly, we deliver results

• Immersion in the existing business through analysis of business metrics and executive interviews, defining problems and opportunities

• Align financial and organizational investment with opportunities, to identify high return, high impact approaches to change. Measure risk against reward

• Conduct off-site session with key stakeholders to achieve alignment and document the strategic vision

• Dissect the vision into well-defined, actionable objectives and build specific action plans to support each objective

• Assist in execution and refinement of the strategic plan with annual update of plan

0201 0403 05Discovery Quantify Potential Align and Define Road Map Read, React, Repeat

“Using the TGC Planning process, we achieved immediate and staggering results. We improved our gross margin dollars by 10.5% in the first 6 months of implementation”.~~ President/CEO, Specialty Retailer


Wholesale

Catalog

ConcessionsTo the TradePop Up Shops

Mobile ShopsTrunk Shows

Sample Sales

Guide Shops

Factory Outlets

Flash Sales

Auctions

Retail Stores

E-commerce

Experiential Retail(Sports Venues, Museums, etc.)

Kiosks

Direct Response

Cable Shopping

Third Party Distributors

Vending Machines

Premium / IncentivesOff-Price

Social Media

Direct Selling

Travel Channel

Marketplace Websites

AuctionsFund Raising Product Licensing

Corporate “B2B”

Retail Franchising

Direct Response

STRATEGY DEVELOPMENTChannels of DistributionThe new “Point of Sale” (POS) is the customer as they cross channels and engage at both physical and virtual touch points. Understanding the customer journey and full range of potential channels of distribution allows you to reach your customer on their terms

Transactional Social


DATA ANALYTICS

Assortment Rationalization• Actionable analytics to drive sales and

inventory productivity

• Four wall analysis

• Streamlined assortment reconciliation between online and offline channels

Big Data• Comprehensive analysis of large, complex

inventory and customer data sets

• Data driven inventory assortment, production, and allocation decision tools

• Customer insight and engagement across journey touch points

• Data Hygiene

Digital Analytics• Digital Marketing Productivity

• “Social Listening” analysis

• E-Commerce performance

• “Mobility” data analytics, tracking and integration

Weather Based Analytics –Planalytics Platform • Powerful Weather based performance

and predictive planning tools

• Integration with current planning systems

Actionable InsightsLeveraging artificial intelligence and machine learning toolsets that allow data exploration at granular levels of detail and at speeds not possible with traditional techniques, TGC identifies key performance insights, and produces customized data driven decision solutions


DIGITAL TRANSFORMATIONDigital Strategy and Transformation Solutions TGC works with you to unlock your digital and e-commerce business opportunity to maximize growth, profitability, and shareholder value

Online and offline channel harmonization• Integration of all client channels and

touchpoints

• Platform / technology assessment & recommendations

• Logistics evaluation and recommendations

Digital experience design• Design, develop and deploy optimal digital

customer User Experience (UX)

• Customer journey mapping & brand alignment

• Conversion rate optimization

Digital footprint & platforms• Benchmark “best in class” digital platforms

• Analyze effectiveness of key business drivers (gross margin, channel distribution, brand)

• Measurement of digital KPIs

Digital marketing• Digital marketing attribution and ROI

• Social media / social transaction channels

• Influencer marketing

• Affiliates and marketplaces


STAFF & STRUCTUREZero-Based Organization DesignActing as trusted advisors to Management, Boards, & Investors, the TGC and Janou Pakter partnership allows us to provide unique and long-lasting Executive team search solutions

Executive Search• TGC and Janou Pakter partnership allows

us to address talent needs in Leadership Team

• Expertise across each consumer sector and function

• Successful placements ranging from CEO, Board Memberships to mid-Level roles

Organizational Engineering• Zero-based organizational design

• Creation of organization “future state”

• Assessment of team structure, “will” and “skill”

• Implementation and change-management planning

Staffing Solutions• Turnkey” staffing solutions for multiple

retail formats

• Outsourced “omni-channel” experiences including Pop-up activations

Benchmarking• Talent mapping

• Marketplace intelligence

• Global compensation benchmarking


ACTION & RESULTS Return on InvestmentWe’re known for rolling up our sleeves and helping clients achieve real, measurable results quickly and efficiently while leaving behind better processes and a fair share of our knowledge and experience

Real Estate Portfolio optimization• Data based retail store expansion

methodologies

• Fleet rationalization

• Lease optimization

Store 4 wall optimization• Field tested store optimization

methodologies

• Operating procedure documentation to maintain institutional memory

Productivity Improvement• Customized solutions

• Test and roll development and implementation

• Omni channel applications

Inventory rationalization • Inventory analysis

• SKU reduction

• Return on assets analysis

• Open to buy optimization


Data analytics for private equity acquisition due diligence

In support of a private equity acquisition assessment, TGC organized and analyzed a “raw” transaction data set comprised of 150 million attributes. TGC classified the content, conducted exploratory data analysis, and delivered both aggregated data in easy to manipulate formats, as well as refined, granular insights in final presentation form – all within a rigorous project timeline of 2 weeks

Example insight deliverables

ACTION & RESULTS – Case Study



131 Hours of total talk time delivering consulting sessions and team webinars2,683 unique pages of content created for the participating companies

Span of Work

120

Categories of Business

Individual and unique Assessments, Mentoring Sessions, Action Plans and Webinars for the participating companies

Digital Transformation Element

30 Companies 40 Weeks

TGC worked with each participant company individually to develop their readiness to do business in the U.S. market through Digital / E-Commerce platforms

• Digital Marketing and Customer Acquisition• Customer Experience• Logistics • Website and social media analytics • Competitive E-Commerce and Digital dynamics

in the U.S. Marketplace

Alcoholic Beverages

Orthodontic Supply

Swimwear

Apparel & Accessories

Home Furnishings & Housewares

Beverage & Food Footwear

Pet Supplies

Beauty & Jewelry

Digital Marketing / E-Commerce DevelopmentThe Brazil trade council, Apex Brasil, engaged TGC to develop e-commerce capabilities for 30 Brazilian consumer companies to transact in the U.S. market


46% Reduction in number of unique SKU’s

25% Increase in Sales per Visitor

SKU Rationalization and Enhanced in shop merchandising

Gross Margin % improvement 80BP

Increase in Shop Sales Productivity

116% Increase in Sales per unique SKU

23% Increase in conversion of museum traffic to transactions

$7.1 $7.6

$8.4

$9.7 $8.8 $8.6

$6.0

$7.0

$8.0

$9.0

$10.0

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Net

Sal

es $

(M

M)

NGA Gift Shop Net Sales

TGC ENGAGEMENT POST ENGAGEMENT

ACTION & RESULTS – Case StudyNational Gallery of Art, Washington, DCSKU Reduction and Productivity ImprovementDuring the TGC engagement at the National Gallery of Art, the gift shops generated record sales of $9.7M, while achieving a dramatic reversal of the negative sales and profit trend. The transfer of TGC’s productivity knowledge allowed the shops to continue operating at a significantly higher sales level long after the engagement ended


ACTION & RESULTS – Case StudyProductivity Improvement, Enhanced Merchandising, SKU reduction and Inventory management

“The Grayson Company’s work significantly improved our same store sales…resulting in an increase in our stock price and a subsequent sale to an investor at a significantly higher value than we would previously have been able to achieve.” ~~ CEO, Consumer Products Company

-1.7%

-6.3%-4.2%

-1.7%-3.8%

+9.0%

-8.0%

-4.0%

0.0%

4.0%

8.0%

12.0%

Year -4 Year -3 Year -2 Year -1 Year 0 Year 1

TGC engagement

Started in November of Yr 0

Comparable Store Sales %

Freestanding

retail stores550Annual Revenue

including all

channels

$800M

Comp Store increase in

the first year9%

Premium shareholders

received on the share price

when the company was sold

56%


Type of Project

Assessed current shop operations, created recommended assortments and store layoutfor newly relocated and expanded shop

Key Project Elements:

Guest Experience Development, Merchandise Planning, Store Layout & Visual Merchandising

Project ScopeTGC worked with the NBC Universal team to develop a vision for a new NBC Retail Experience Store at their Rockefeller Center headquarters

The TGC team used information gathered from meetings with key stakeholders, visits to numerous comparable concepts, an in-depth study of the existing NBC Experience, the current customer, and store data to bring best-in-class expertise to the engagement

The TGC team then helped develop all aspects of the retail strategy, including the recommended store layout, product assortment, fixture plan, visual merchandising plan, staffing plan and target customer experience

ACTION & RESULTS – Case StudyNBC Experience Store, Rockefeller Center NYC


ACTION & RESULTS – Case StudyCompany Strategic Plan and Re-engineeringBusiness plan, road map, expense reduction and organizational structure

“Working hand-in-hand with TGC to redefine our strategy, allowed us to quickly and clearly identify the real size of our opportunity, and a credible plan to get there. We are living to that plan today.” – Company CEO

CHALLENGE

A publicly held home furnishings omni-channel retailer that operated 60 stores and a very successful e-commerce operation was faced with declining profitability while they seeking growth investment

TGC SOLUTION

• Conducted a three-year strategic planning process to align vision and prioritize future growth strategies

• Reengineered organizational structure to drive maximum efficiency and reductions in non-value add operating costs including bloated payroll and store expenses

• Developed a distribution and real estate strategy dramatically improving the quality of the store locations

RESULTS

Within 12 months (year 2), the client generated the first positive EBITDA contribution in the company’s history

$60.0 $74.2 $76.3

$101.8

$165.9

$30.0

$80.0

$130.0

$180.0

Year 1 Year 2 Year 3 Year 4 Year 5

S A L E S / R E V E N U E ( $ I N M M )


ACTION & RESULTS – Case StudyOrganizational Design, Succession Planning, and SearchThe Grayson Company has extensive experience working with Boards, Senior Leadership and Investors to redefine and transform organization structures, identify best in class leadership talent, as well as manage the recruitment process. Our immersion in the culture of our clients enables the success of these processes

1

2

Case 1• Developed a 5-year succession and organizational

transformation plan for the board of a global brand

• Recruited CEO, CMO, CTO, and other senior team to the new organization

• Provided multi-year management of implementation

Case 2• Re-engineered organization design of multi-brand

global brand including strategy for brand management, digital commerce, business development and shared services platform roles

• Recruited key C level executives to the team• Provided on-going support for strategy and

execution



Next Phase Strategic Plan

2020

Strategy and ImplementationTGC has worked with the U.S.P.A Board and Management team over the years on their strategic plans, organizational structure, distribution strategy, product strategy, and their roadmap to generating $2B in worldwide retail sales. The brand is now ranked as the 4th largest global sports licensor and is on track to achieve the sales goal


OUR CLIENTSFinancial and Investors


Apparel & Collections Denim Footwear

Off-Price & Department Stores

Beauty & Fragrance

Children's

Jewelry, Watches & Access

Sportswear & Sporting Goods

OUR CLIENTS


Experience, Museums and Entertainment

Other SpecialtyBooks & Gifts

International

Candy, Food & Novelty

Home Furnishings & Lifestyle

OUR CLIENTS

E-commerce/ Digital

http://www.chicco.com/Home/tabid/39/language/en-US/Default.aspx


[email protected]

212.661.6262WWW.THEGRAYSONCOMPANY.COM

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