rohit talwar icsc baltic retail conference presentation - cctober 20th 2011

212
Shaping the Future Driving Retail Innovation and New Thinking in Shopping Centres Shopping Centre of the Future ICSC Baltic States Retail Real Estate Conference - Vilnius October 20 th 2011 Rohit Talwar CEO - Fast Future [email protected] www.fastfuture.com

Post on 14-Sep-2014

4.189 views

Category:

Business


3 download

DESCRIPTION

Rohit Talwar's presentation to the ICSC Baltic Retail Conference, looking at innovation and new thinking in shopping centres.

TRANSCRIPT

Page 1: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Shaping the Future Driving Retail Innovation and New

Thinking in Shopping Centres

Shopping Centre of the Future

ICSC Baltic States Retail

Real Estate Conference - Vilnius

October 20th 2011

Rohit Talwar

CEO - Fast Future

[email protected]

www.fastfuture.com

Page 2: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Contents

Presentation p 3

About Fast Future p 69

Background Materials p 80

Image Sources p 206

Page 3: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

The World in 2015

Page 4: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

How do we get there from Here?

Continuous Innovation

Customer Insight

New

Business Models

Page 5: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Growth is not Guaranteed… Growth is not Guaranteed…

Page 6: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

…Thinking is Back in Fashion

Page 7: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Transformational Change?

It’s Only Just Begun

Page 8: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

10 Key Patterns of Change Shaping the Next Decade Economic turbulence, a shift in wealth from west to east and political

uncertainty are shaping the landscape

Technology

and Science

Rethinking

Talent,

Education,

Training

Demographic

Destinies

Society in

Transition

Natural

Resource

Challenges

Geo-political

Complexity

Generational

Crossroads

Source: Designing your Future – Key Trends, Challenges and Choices – Fast Future

Economic Crisis

and Power Shift

Global

Internet

Expansion

Enterprise 3.0

Page 9: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Demographic Destinies 2 billion more people in 40 years –

Demographics is Driving Economics

1998

448 691

729

5231

4157

739

1030

344

585

Source : United Nations 2010 2050

Page 10: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Life Redefined –

Lifespans are Increasing

Under 50’s have 90%

chance of living to 100.

Aubrey de Grey suggests

we could live to 500 or 1000

What are the health,

consumption and resource

implications?

What kind of opportunities

will be created?

Page 11: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Competitiveness and Innovation Rankings

World Economic Forum – Global Competitiveness Report 2011-2012 Rankings (out of 142) [1]

INSEAD – Global Innovation Index 2011 Rankings (out of 125) [2]

Innovation for Development Report 2010-2011 – Innovation Capacity Rankings (out of 130) [3]

Czech Rep. 38 27 32

Estonia 33 23 25

Latvia 64 36 30

Lithuania 44 40 26

Romania 77 50 55

Slovakia 69 37 36

Page 12: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Innovation

Page 13: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

The Baltic Outlook

Page 14: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Luxury Retail

Page 15: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Race to the Middle

Page 16: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Local Outlets and Products

Page 17: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Discount Debates

Page 18: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Value or Values?

Page 19: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Stores as a Brand Experience

Page 20: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Pop-up Stores – e.g. Boho

Page 21: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Tesco My Liberec

Page 22: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Innovative Experiences:

Edible Furniture - Lithuania

Page 23: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

The Slide@T3

Changi Airport - Singapore

Page 24: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Technology and Retail

Page 25: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Digital Signage – Unirea Romania

Page 26: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Integrating Physical and Virtual

Page 27: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

‘Scan It’

Page 28: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Telephony • Voice

• Messaging

• SIM card

• Phonebook

• Ring Tones

• Security

Connectivity • Cellular

• Up to 14 bands

• WLAN/BT

• GPS

• NFC

• FM

Data/

Enterprise • 100Mbps

• Email

• IMS

• Browsing

• VPN

• PIM

• Ecommerce

• Payments

Software • Protocols

• Middleware

• Applications

• User Interface

• Minimize fragmentation

Multimedia • Camera 8-16M

• Camcorder

• 24M Color Display

• Memory (160GB)

• Multiformat A/V • HD Video/TV out

• Games

(50-100M Tps)

• DRM

TMT – Convergence and Immersion

Page 29: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Near Field Communications -

Mobile Contactless Payments

Page 30: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Mobile Enabled

Personalised Advertising

Page 31: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

QR Tags

Page 32: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Daily Social Media Offers e.g. Twitter

Page 33: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Social Shopping in Estonia

Page 34: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Fits.Me

Page 35: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Fits.Me

Page 36: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Store and Product Locators

Page 37: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Kiosks and Interactive Surfaces

Page 38: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Ambient (Embedded) Technologies

(IP in Everything)

Page 39: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

‘Virtual Assistants’

Page 40: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Holographic Displays

Page 41: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Augmented Reality at

Copenhagen Airport

Page 42: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Gesture Interfaces

Page 43: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Touchable Holograms

Page 44: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Interactive Surfaces

Page 45: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Wearable Displays

Page 46: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Ambient Intelligence

Page 47: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

3D Printing – True Personalization

Page 48: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Innovation –

Where are the Opportunities?

Page 49: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Leveraging Customer Insight

Page 50: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Building Trust Brands

Page 51: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Attracting Customers

Page 52: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

New Retail Concepts

Page 53: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Chain vs. Independent

Page 54: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Catering and Lounge

Experiences

Page 55: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Services

Page 56: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Rethinking Business Models

Page 57: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Best Price Guarantees

Page 58: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Partner Tie-ins Pullman Bangkok King Power Hotel

Page 59: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Auctions - The $17,739 iPad

Page 60: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

So How do we Respond?

Page 61: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Make Time and Space for Change

http://news.nationalgeographic.com/news/bigphotos/images/090305-daylight-saving-time-facts-history_big.jpg

Page 62: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011
Page 63: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

What does the timeline of

developments and challenges

look like for your markets?

Page 64: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Deep Dive on Key Trends / Issues

Page 65: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Are you Sticky and Magnetic?

Page 66: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

How Networked Are You?

Page 67: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Conclusions

• Expect

Turbulence

• Understand

Trends and

Scenarios

• Embrace

Innovation

Page 68: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Thank You

Rohit Talwar

CEO

Fast Future

[email protected]

Tel +44 (0)20 8830 0766

Mob +44 (0)7973 405145

Twitter http://twitter.com/fastfuture

LinkedIn http://www.linkedin.com/in/talwar

www.fastfuture.com

www.convention-2020.com

Blog http://widerhorizons.wordpress.com

Signup for our newsletters / Download past editions at www.fastfuture.com

Watch a short video of Rohit at http://www.travelmole.tv/watch_vdo.php?id=14300

Download the Hotels 2020: Beyond Segmentation Report at

http://www.amadeus.com/hotelit/beyond-segmentation.html

Page 69: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

About Fast Future

Page 70: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Fast Future –

Retail and Real Estate

Industry Services • Live Events - Speeches, briefings and workshops for executive

management and boards of retailers, property and construction firms,

airlines, airports, hotels, venues, CVB‟s and associations

• Future Insights - Customised research on emerging trends, future

scenarios, technologies and new markets

• Immersion - „Deep dives‟ on future trends, market developments,

emerging issues and technology advances

• Strategy - Development of strategies and business plans

• Innovation - Creation of business models and innovation plans

• Engagement - Consultancy and workshop facilitation

Page 71: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Fast Future • Research, consulting, speaking, leadership

• 5-20 year horizon - focus on ideas, developments, people,

trends and forces shaping the future

• Clients

– ING, ABN Amro, Laing O‟Rourke

– Marks and Spencer

– Airports - Aeroports de Paris / Schiphol Group

– Vancouver Airport Services

– Industry Associations – ICCA, ASAE, PCMA, MPI

– Corporates - GE, Nokia, Pepsi, IBM, Intel, Orange,

O2, Siemens, Samsung, GSK, SAPE&Y, KPMG,

Amadeus, Sabre, Travelport, Travelex, ING,

Santander, Barclays, Citibank, DeutscheBank

– Governments - Dubai, Finland, Nigeria, Singapore,

UK, US

– Convention Bureaus – Seoul, Sydney, London, San

Francisco, Toronto, Abu Dhabi, Durban, Athens,

Slovenia, Copenhagen

– Convention Centres – Melbourne,

Adelaide, Qatar, QEIICC

– Hotels - Accor Group, Preferred,

– Intercontinental

– PCO‟s - Congrex, Kenes

Page 72: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Hotels 2020 – Objectives

• Identify key drivers of change

for the globally branded hotel

sector over the next decade

• Examine the implications for:

Hotel strategy

Brand portfolio

Business models

Customer targeting

Innovation

Page 73: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

• Global strategic foresight study to help the meetings industry prepare for

the decade ahead - Industry-wide sponsors

• Multiple outputs Nov 2009 – December 2011

• Current studies on future strategies for venues and destinations

Convention 2020

Page 74: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Future Convention Cities Initiative • Members - Cities aiming to be global leaders in delivery of business events

• Focus - Maximising long term economic benefit of events

• Core Activities - Research, sharing of expertise and best practices

• Engagement Model - Meet four time a year prior to major industry events

• Management - Initiated and co-ordinated by Fast Future

Page 75: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Rohit Talwar • Global futurist and founder of Fast Future Research.

• Award winning speaker on future insights and strategic innovation –

addressing leadership audiences in 40 countries on 5 continents

• Author of Designing Your Future

• Profiled by UK’s Independent Newspaper as one of the Top 10 Global

Future Thinkers

• Led futures research, scenario planning and strategic consultancy

projects for clients in telecommunications, technology,

pharmaceuticals, banking, travel and tourism, environment, food and

government sectors

• Clients include 3M, BBC, BT, BAe, Bayer, Chloride, DTC De Beers, DHL,

EADS, Electrolux, E&Y, GE, Hoover, Hyundai, IBM, ING, Intel, KPMG,

M&S, Nakheel, Nokia, Nomura, Novartis, OECD, Orange, Panasonic,

Pfizer, PwC, Samsung, Shell, Siemens, Symbian, Yell , numerous

international associations and governments agencies in the US, UK,

Finland, Dubai, Nigeria, Saudi Arabia and Singapore.

• To receive Fast Future’s newsletters please email

[email protected]

Page 76: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

• 50 key trends

• 100 emerging trends

• 10 major patterns of change

• Key challenges and choices for

leaders

• Strategic decision making framework

• Scenarios for 2012

• Key futures tools and techniques

• Published August 2008

• Price £49.95 / €54.95/ $69.95

• Email invoice request to

[email protected]

Designing Your Future Key Trends, Challenges and Choices

Page 77: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Our Services Bespoke research; Identification & Analysis of Future Trends, Drivers & Shocks

Accelerated Scenario Planning, Timelining & Future Mapping

Identification of Opportunities for Innovation and Strategic Investment Strategy Creation &

Development of Implementation Roadmaps

Design & Facilitation of Innovation, Incubation & Venturing Programmes

Expert Consultations & Futures Think Tanks

Personal Futuring for Leaders and Leadership Teams

Public Speaking, In-Company Briefings, Seminars and Workshops

Page 78: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Example Projects • Public and private client research e.g. :

– Development of Market Scenarios, emerging trends and strategies for key clients

– Government and OECD Scenario Projects – e.g. Migration 2030, Future of Narcotics, Chemical Sector, Family 2030

– Scenarios for the global economy for 2030 and the implications for migration

– Designing Your Future (Published August 2008) – book written for the American Society of Association Executives & The Center for Association Leadership

– Global Economies – e.g. The Future of China – the Path to 2020

– The Shape of Jobs to Come – Emerging Science and Technology Sectors and Careers

– Winning in India and China

– The Future of Human Resources

– Exploiting the Future Potential of Social Media in UK Small to Medium Enterprises

– Convention 2020 – the Future of Business Events

– Future Convention Cities Initiative – Maximising Long-term Economic Impact of Events

– One Step Beyond – Future trends and challenges for the events industry

– Hotels 2020: Beyond Segmentation – Future Hotel Strategies

– The Future of Travel and Tourism in the Middle East – a Vision to 2020

– Future of Travel and Tourism Investment in Saudi Arabia

– Aviation and Airports e.g. Aviation 2030

Page 80: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Background Materials

Page 81: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Macro Statistics - Czech republic,

Slovakia, Romania, Estonia, Latvia &

Lithuania Growth % Productivity Business Environment

Growth of Real

GDP 2011 –

2030 %

change Annual

av.

Labour

Productivity

Growth 2011-

2030 % change

annual av.

Global Rank

(out of 82)

Regional

Rank (Out of

16)*

2006-

2010

2011-

2015

2006-

2010

2011-

2015

Czech Rep. 2.2 2.7 27 29 1 2

Estonia 3.5 4.1 28 30 2 3

Latvia 3.6 3.8 45 47 8 9

Lithuania 3.4 3.6 43 46 7 8

Romania 3.4 3.4 50 50 10 10

Slovakia 3.4 3.6 31 30 4 3

* Azerbaijan, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kazakhstan, Latvia, Lithuania, Poland, Romania, Russia, Serbia, Slovakia,

Slovenia and Ukraine

Economist Intelligence Unit, http://www.eiu.com/

Page 82: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Macro Statistics cont.

Growth of GDP per head

Country Growth of Real GDP per head (% change; annual

average

2011 – 2020 2021 - 2030 2011 - 2030

Czech Rep. 2.5 2.6 2.5

Estonia 3.9 3.8 3.9

Latvia 4.4 4.4 4.4

Lithuania 4.7 3.1 3.9

Romania 3.7 3.8 3.7

Slovakia 3.7 3.5 3.6

Economist Intelligence Unit, http://www.eiu.com/

Page 83: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Direct Retail Sales - Czech Republic,

Slovakia, Romania, Estonia, Latvia &

Lithuania

Estimated Retail Workforce

Country Sales, US $

Mn

Number of

Sellers

% Women % Part Time

Czech Rep. 223.5 223,673 95% 85%

Estonia 17.2 20,960 95% na

Latvia 27.4 24,000 96% na

Lithuania 41.1 31,235 95% na

Slovakia 98.6 98,000 Na na

Romania 204.4 245, 560 84% 31%

WfDSA International Statistics, [no date] http://www.wfdsa.org/statistics/index.cfm?fa=display_stats&number=1

Page 84: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

EU and Euro Area Economic

Sentiment Indicator

Statistical Office of the Slovak Republic, 06/11, http://portal.statistics.sk/showdoc.do?docid=36877

Page 85: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

European Innovation Scoreboard

Page 87: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Personalization

Page 88: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Reinventing Formats

Page 89: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Curiosity Drives Insight

Page 90: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Booking/Boarding Pass Ads / Offers

Page 91: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Outlook for CEE

Page 92: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

10 Assumptions for CEE

through 2020 1. CEE in its current form will not exist any more – Europe will

consist of EU and non-EU countries, and the region will be much more diverse

2. The region will not be among the global emerging markets but will remain the main European growth region. GDP growth will plateau at about 2% above WE level

3. Although the CEE countries continue to develop from "workbenches" to innovation-driven economies, the gap between Western Europe and CEE will persist

4. Lack of basic requirements (institutions, infrastructure) will remain CEE's main weakness, whereas efficiency enhancement is a competitive advantage

5. Human capital issues (demographic development, brain drain, education) will remain the second bottleneck for further economic development

CEE in 2020, 11/10, http://www.rolandberger.com/media/pdf/Roland_Berger_CEE_in_2020_20101201.pdf 13/07/11

Page 93: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

10 Assumptions for CEE

through 2020 6. In 2020, CEE will still be dependent on Western Europe –

Pan-CEE business is developing fast and may become a potential way out

7. Its unique position as a bridgehead between the emerging markets of Russia, Turkey, China and the advanced economies of Western Europe is CEE's future capital

8. Counteracting the scarcity of energy & raw materials, the consolidation of public finances and the consequences of technological progress are the main tasks for the next decade

9. The regional growth industries will be energy & utilities, IT & telecom and pharma & healthcare – Shift toward future industries needed

10. The main future growth drivers are thought to be energy-related (energy efficiency, renewables) and IT solutions

CEE in 2020, 11/10, http://www.rolandberger.com/media/pdf/Roland_Berger_CEE_in_2020_20101201.pdf 13/07/11

Page 94: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Trends - Czech Republic

Page 95: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Czech Republic Retail Innovation

Page 96: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Czech Retail Trends

Page 97: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Czech Retail Trends

• The Q311 BMI Czech Republic Retail report forecasts that the country's

retail sales will grow by 19% between 2011 and 2015, from a predicted

CZK929.11bn (US$89.13bn) in 2011 to CZK1,101.57bn (US$105.67bn) by

the end of the forecast period.

• Rising disposable incomes, easier access to credit, the increasing number

of large retail outlets and shopping centres and increasing car ownership

are key factors behind retail market expansion.

• EU membership since 2004 and substantial foreign direct investment (FDI)

continue to drive growth, contributing to predicted annual retail sales growth

of 4.0% in local currency terms over the forecast period.

Source: Research and Markets, 2011

http://www.researchandmarkets.com/research/05fe85/czech_republic_retail_report_q3_2011

Page 98: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Czech Retail Trends

• BMI data suggest that over the counter (OTC) pharmaceutical sales will

grow by nearly 28%, from US$0.81bn in 2011 to US$1.04bn by the end of

the forecast period.

• Consumer electronic sales are forecast to expand by nearly 24%, from

US$4.20bn in 2011 to US$5.20bn by 2015, with per capita consumer

electronics spending forecast to grow by at least 19% to US$513 as sales of

digital products increase.

• Vehicle sales are expected to rise by nearly 24%, from 194,602 units in

2011 to 240,910 units in 2015. On the domestic sales front, new car

registrations are estimated to have been flat in 2010 but growth is expected

to recover strongly from 2011 as the economy picks up, credit becomes

more widely available and the effects of government incentives begin to be

felt.

Source: Research and Markets, 2011 http://www.researchandmarkets.com/research/05fe85/czech_republic_retail_report_q3_2011

Page 99: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Czech Retail Trends

• Food sales in the Czech Republic, forecast by BMI to be US$12.85bn in

2011, are predicted to rise by 15.4% to US$14.82bn by 2015. Food

expenditure as a percentage of GDP is expected to decrease slightly, from

5.8% in 2011 to a projected 5.1% in 2015. This reflects the broader

expansion of the economy and the ability of consumers to purchase a wider

range of consumer goods, although price consciousness, as in all Central

and Eastern European (CEE) countries, still characterises consumers‟

purchasing habits.

Source: Research and Markets, 2011 http://www.researchandmarkets.com/research/05fe85/czech_republic_retail_report_q3_2011

Page 100: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Czech Trends

• Chained retailers seek ways on how to maintain consumers

• Czech consumers became used to a high level of special offers and

discounting actions of chained retailers which chose this strategy in an effort

to attract consumers at the end of the review period.

• Nevertheless, this strong emphasis on weekly (or monthly) special offers

increased the frequency of shopping and reduced the loyalty of consumers.

• Moreover, this strategy also had a negative impact on mark-ups and profit of

retailers. With respect to this, retailers started to seek ways on how to not

only attract consumers, but also to retain them.

• These strategies include for example loyalty programmes, a wider offer of

private label brands or improvement of the shopping environment.

Source: Euromonitor, 2011 http://www.euromonitor.com/retailing-in-the-czech-republic/report

Page 101: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retailers in the Czech Republic

invest in networks modernisation • Ahold continues modernisation of its network in the Czech Republic. In

2010 the company renewed 17 shops, mostly supermarkets. Furthermore,

this year Ahold wants to remodel at least 25 shops, according to Financni

Noviny.

• The other retailers operating on the Czech market also rejuvenate their

networks. For example Tesco Czech Republic remodels some of its

hypermarkets into Tesco Extra venues characterised by a larger store‟s

space and hosting a pharmacy and other supplementary services.

• Tesco opened three of those shops so far and the next two will be

remodelled later in 2011

• On the other hand, discounter chains Kaufland and Penny decided to

update shops by changing interiors and layout as well as expanding fresh

food sections.

Source: CEE Retail, 2011 http://www.ceeretail.com/?com=one_free&id=103547&hash=ad6d3e39eca93a09bca142f01b5ff30d

Page 102: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Tesco Extra Rebranding

Page 103: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Ahold – Network Modernization

Page 104: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Kaufland / Penny – Store Refresh

Page 105: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

CEE Retail Real Estate Awards

2010

Page 106: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

CEE Retail Real Estate Awards

2010 • Mixed-use Project of the Year - Eurovea – Slovakia (1)

• Shopping Centre Large: over 40,001 to 75,000 sqm GLA - Eurovea

• EUROVEA is a €450 million investment in Bratislava and Slovakia‟s largest

mixed-use development to date (2). quarter is spread over an area of more

than 230,000 m², and is the largest development in Central Europe.

• EUROVEA retail component, with its 150 shops, brings together

international retailers, such as Marks & Spencer, Next, Debenhams and

H&M. Adjacent to the retail is the Ballymore owned five-star, 209 bedroom

Sheraton Bratislava Hotel. The development also contains 30 restaurants

and bars, and a 9 screen cinema. The residential component consists of

235 apartments and the project offers also 24,500 m² of Class A office

accommodation.

• EUROVEA is expected to bring in excess of 12 million people annually to

this part of Bratislava.

http://www.europe-re.com/system/main.php?pageid=2616&articleid=16048

(1) http://www.europaproperty.com/index.php?a=events&b=cee2010&id=final-results

Page 107: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovakia - Retail Trends

Page 108: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovakia Retail Trends

• „The outlook for consumer spending in Slovakia is currently relatively

positive. We expect the Slovak economy to experience a sustained

recovery into 2011, complete a rebound in consumer spending by 1.5%.

While exports will remain key to growth, we believe that they will begin to

play a less prominent role in driving real GDP growth in 2011. Though the

unemployment rate remains stubbornly high, we expect that the sustained

economic recovery in the country will see this rate come down in the second

half of the year. However, high food inflation and recently increased taxes

on alcoholic drinks will continue to feed through to consumer prices,

negatively impacting volume sales, especially of premium goods. ‟

Source: Market Research 2011 http://www.marketresearch.com/Business-Monitor-International-v304/Slovakia-Food-Drink-Q3-6441118/

Page 109: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovakia Retail Trends

• Headline Industry Data (local currency)

• 2011 per capita food consumption = -0.85%; forecast to 2015 = +9.04%

• 2011 alcoholic drinks sales = +3.18%; forecast to 2015 = +15.95%

• 2011 soft drinks sales = +6.12%; forecast to 2015 = +37.45%

• 2011 mass grocery retail = +1.17%; forecast to 2015 = +12.82%

Source: Market Research 2011 http://www.marketresearch.com/Business-Monitor-International-v304/Slovakia-Food-Drink-Q3-6441118/

Page 110: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovakia Retail Trends

• A June 2011 study by the real estate consultancy Colliers International (CI)

shows that the Slovak capital city of Bratislava has one of the lowest rents

in retail space compared to other capital cities in the region. The highest

rents are paid in stores in Budapest, namely €65/m² per month. This figure

in Bratislava stands at €38/m² per month.

• The rents in shopping centres and other retail facilities have gone down in

all capital cities in Central Europe over the past year. Owners of shopping

centres continue to lower rents in a move to attract tenants.

• Rent in Bratislava is the lowest in the region, standing at €40/m² per month.

This figures goes up to €86/m² per month in Warsaw, €110/m² per month in

Budapest, and to €200/m² per month in Prague.

Source: CEE Retail, 2011 http://www.ceeretail.com/106522/Bratislava-has-the-lowest-rents-for-shopping-centres-in-the-CEE-region.shtml

Page 111: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Innovation Slovakia

Page 112: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovakia - Retail Expansion

Page 113: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovak Retail Market Expansion

• A total of 85,000 m² in shopping centre GLA was delivered in Slovakia in

2010, a 50% drop against the previous year, according to data from the real

estate consultancy Colliers International (CI). No shopping centre was

delivered in Slovakia in Q1 2011.

• At the moment, the total area of shopping centres under construction in the

country is 140,000 m², according to CI.

• A major boost to the market will be the construction of the Central shopping

centre in Bratislava. Another major shopping centre project slated for

completion in 2011 is the Bory Mall -expected to bring some 65,000 m² GLA

onto the market.

• 2011‟s expansion of shopping centres in Slovakia is also expected to be

regional, with centres scheduled to open in Humenne, Cadca and Malacky.

Source: CEE Retail, 2010 http://www.ceeretail.com/106009/Drop-in-delivery-of-shopping-centres-last-year-in-Slovakia.shtml

Page 114: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovak Retail Act Abolished

• The Retail Act, which was intended to prevent retail chains from abusing

their powerful market positions in their dealings with suppliers, was repealed

on 12 January 2011 by the Slovak government.

• The Act‟s aim was to prevent retail chains from imposing unfair commercial

conditions in their contracts with suppliers.

• The procedure for the repeal of the Act was initiated by the Ministry of

Agriculture, which claimed that it did not achieve its goal of putting an end to

the unfair conditions imposed by retail chains on their suppliers. The

ministry argued that the abolition of the Act lowers the barriers to

entrepreneurship in the field of food supply, improves the business

environment in the retail arena and reduces the regulatory burden.

• According to the ministry, the Act did not fulfill its goal to put an end to unfair

conditions imposed by retail chains on their suppliers.

Source: CEE Retail, 2011 http://www.ceeretail.com/97676/Slovakia8217s-retail-law-repealed-.shtml

Page 115: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovak Retail Act Abolished

• Opposition MPs have criticised the move, saying that without such a law,

the practices of foreign retail chains, which forced suppliers to sell their

products to supermarket and hypermarket operators at production prices

will return to the Slovak retail market.

• On the other hand, the Agriculture Ministry says that without this Act more

Slovak products will make it to the market. It argues that once the retail law

was adopted some two years ago, multinational chains started to avoid

Slovak suppliers completely and to buy more produce abroad.

Source: CEE Retail, 2011 http://www.ceeretail.com/97676/Slovakia8217s-retail-law-repealed-.shtml

Page 116: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Tesco My Liberec

Tesco My Liberec, based in the Czech town of Forum Liberec is Tesco‟s first

effort at a department store cum supermarket. This is part of a strategy to

expand beyond the basics of Tesco‟s grocery business.

• The Czech republic was targeted as a trial market for the format as it‟s

consumers have a very different idea as to what Tesco can provide than do

consumers in more established markets.

The finished product is very different from a traditional Tesco store.

• It bears very little Tesco signage

• The grocery area has been given a makeover having more in common with

upmarket food halls

• The department store space (downstairs incidentally; a reversal of the

norm)

• Tesco brands rub shoulders with concessions in a carefully designed space

Retail Week, 19/03/2009, http://www.retail-week.com/my-liberec-a-tesco-store-but-not-as-we-know-it/2013781.article

Page 117: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Tallink Silja Oy –

‘1000’ Experience Programme

Page 118: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

”1000 Tuotekehittäjää” Tallink Silja Oy* won the Excellence Finland, Quality Innovation Prize of the

Year award for its product development concept ”1000 Tuotekehittäjää”

• The prize is awarded annually to an innovative product, service or operation

concept. Tallink Silja won the prize in the category of large companies

• The campaign ”1000 Tuotekehittäjää” was realized for the Silja Line brand

in autumn 2009. Consumers were urged to test the cruises and provide

feedback. Oy selected 1000 regular customers and offered them a cruise in

Class A. These customers then provided comprehensive feedback. The

answerers were also able to comment, propose ideas and their own

development suggestions.

• Several development ideas originating with the project, such as interactive

blog Siljan Tuotekehittäjät, have already been implemented and others are

pending.

• executive manager of Tallink Silja Oy, Margus Schults, has said that

Oy ”…intend to develop our products and services in collaboration with our

customers also in future”

• The project has been held up as a role model for user involved service

innovation

Estonia Trade, 01/12/10, http://www.estoniantrade.ee/index.php?Page=EstonianNews&NewsID=379&lang=ENG 12/07/11

Page 119: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Pop Up Malls?

Page 120: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Czech Pop-up Store

• Pop-up stores have recently become a phenomenon in the Czech Republic.

• The Boho Pop Up Store opened in a space adjacent to the Czech Inn in

Prague 10-Vršovice and is the brainchild of Patricia Madarova.

• The Boho Pop Up Store is homey, with old used furniture as a backdrop to

the clothing and accessories.

• Suitcases with their original clasp closures are priced from 390 CZK ($22).

• Pop-up stores, and this one included, are only open for a short period. The

Boho pop-up store's closing Bang-Bang party was August 11, 2011.

Source: Prague.tv, 2011 http://prague.tv/articles/shopping/boho-pop-up-store

Page 121: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

A First in Slovakia

• This year in Central Europe Tesco has launched the Extra store format. The

new format has introduced to our stores a range of innovations, from self-

service checkouts to retail services, such as pharmacies, opticians, and

financial services. Many of these innovations are firsts for the country.

• Tesco Mobile was launched in 2010 in Slovakia and is now the biggest

alternative Telecoms provider after Orange, T-com and O2.

Source: Tesco PLC, 2011 http://www.tescoplc.com/about-tesco/a-global-business/how-we-compete/

Page 122: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

The Baltic States

Page 123: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail - Estonia

Page 124: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Estonia Retail Innovation

Page 125: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Estonia Retail Innovation

Page 126: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Sales and Operations Planning

Page 127: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Sales and Operations Planning

• In June 2011 Infor, provider of business application software, announced a

business partnership with UAB Senuku (Senukai) - the biggest DIY retailer

in the Baltics, to deploy Infor S&OP combined with the Infor SCM Demand

Planning and Replenishment Planner.

• The project encompasses the complete sales and operations planning

(S&OP) cycle from demand planning and inventory optimization through to

supply replenishment across their retail and wholesale branches.

• Infor will help Senukai to reduce overall stock levels while avoiding stock-

out situations by improving demand forecast accuracy for every product at

every location and planning replenishment across their international supply

chain. Infor S&OP enables UAB Senukai to get more insight into their

demand and supply plans, perform real-time 'what-if' scenario planning for

different demand-supply conditions and assess their plans in unit and

financial terms.

Source: Retail Technology Review, 28/06/2011,

http://www.retailtechnologyreview.com/absolutenm/templates/retail_supply_chain.aspx?articleid=1720&zoneid=1

Page 128: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Help for Start-Ups • HumanIPO is an Estonian based online platform seeks to help gather

momentum for startups of any kind from around the world.

• Entrepreneurs can use HumanIPO to build a business by sharing their ideas

in order to find partners, mentors, consultants, foreign sales agents and

investors.

• Toward that end, leaders of startups can upload their business ideas in

“stealth mode” on HumanIPO, including just basic details such as a startup

teaser, pitch and attachments to explain the idea further. From there, they

can invite feedback on their idea from contacts on LinkedIn and elsewhere.

• As on Facebook, visitors can post comments and suggestions on the

startup idea‟s “wall”; they can also follow the concepts they like. Eventually,

when the startup is ready for further visibility, the entrepreneurs involved

can publish the teaser on the HumanIPO directory, opening it up to new

potential partners and funding opportunities.

Source: Springwise, 05/11/2010, http://www.springwise.com/life_hacks/humanipo/

Page 129: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Social Shopping in Estonia

• WhosRich.me is a social shopping platform from Estonia that gives

consumers a way to share their latest purchases and comment on those of

their friends.

• WhosRich.me is a social utility that aims to make it easy for people to track

their friends‟ shopping habits. Users enter their purchases via a simple

interface, including a photo along with the date, time and price; for updates

on the go, a mobile iPhone app is also available. From there, other

members can view and comment on each other‟s purchases. The site‟s

search tool also lets consumers sort results by country or keyword for a look

at trends of interest to them.

• WhosRich.me is free for users. No word yet on its business model, but as

with other such ventures, there‟s clearly the potential not just for advertising

but also for referral fees from vendors whose products get highlighted on

the site.

Source: Springwise, 01/02/2010, http://www.springwise.com/lifestyle_leisure/whoisrichme/

Page 130: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Innovation Lithuania

• The Mosaic brand went through a fast

track development process which set

out a requirement to visually

differentiate between Men‟s, Women‟s

and Children‟s collections in store.

• The brand is aimed toward office workers and as such the store borrows from „office‟ design.

• The lighting was also specially designed as was the store architecture.

Source: Fibre2Fashion, 11/11/08, http://www.fibre2fashion.com/news/garment-company-news/newsdetails.aspx?news_id=65754 12/07/11

The Mosaic store, opened in 2008, represented a new retail concept in

Vilnius. The project was a year in development.

Page 131: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Edible Furniture

Innovative publicity stunt:

• In February 2011 a store called Adventures in Retail in the Akropolis

shopping mall in Lithuania created an entire chocolate dining room.

• The store transformed 183-square-foot space into a full-blown chocolate

dining room set.

• The entire room weighing in at 661 pounds of chocolate

Source: Trend Hunter, 17/02/2011, http://www.trendhunter.com/trends/lithuania

Page 132: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail - Latvia

Page 133: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Estonia - Latvia Programme

2007-2013

Page 134: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Estonia - Latvia Programme

2007-2013 • The Estonia-Latvia Programme 2007-2013, began in 2007 as a cross-border

European Commission initiative to promote mutual sustainable development

and economic competitiveness through achieving an integrated and cross-

border economic, social and environmental development.

• The Programme aims to facilitate collaboration on the development of mutual

ICT and transport infrastructures and co-operation on environmental and retail

issues and the provision of education and other public services. (1)

• 14 new projects were announced in May 2011 including – the reconstruction of

the road between Killingi-Nõmme, in Estonia, and Mazsalaca, in Latvia; the

DELBI initiative to help small and medium enterprises and start-ups access the

cross-border market, as well as facilitate cross-border partnerships in different

fields; and the FoodArt project, which aims at strengthening the ties between

the rural food producers and gourmet restaurants. (2)

Source 1: The Estonia-Latvia Programme, March 2010,

http://www.estlat.eu/files/programme_manual_%2810_03_2010%29_f6dbc.pdf

Source 2: The Estonia-Latvia Programme, May 2011, http://www.estlat.eu/news/programme-news/14-new-projects-approved/

Page 135: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Trends

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Romania 45.1 59.5 67 54.8 53 55 60.1 66.6 74.7 84.4

Retail sales, international comparison - US$bn

Sources: Planet Retail; Economist Intelligence Unit.

Page 136: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Trends

• The Q311 Business Monitor International (BMI) Romania Retail report

forecasts that the country‟s total retail sales will rise by 18% between 2011

and 2015, growing from a predicted RON20.70bn (US$8.26bn) in 2011 to a

forecast RON24.48bn (US$9.77bn) by 2015.

• Continuing wage growth, the consumer lending boom and rising disposable

income following the introduction of a new flat rate of income tax are key

factors behind retail market expansion.

• Romania‟s privatisation process since 1990 and EU membership since in

2007 have allowed retailers to make significant inroads into the market,

contributing to forecast annual retail sales growth of 4.2% in local currency

terms.

Source: Market Research, 27/05/2011, http://www.marketresearch.com/Business-Monitor-International-v304/Romania-Retail-Q3-6398671/

Page 137: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Trends

• Retail sub-sectors that are likely to experience strong sales growth over the

period include over the counter (OTC) pharmaceuticals, which BMI predicts

will total US$0.73bn in 2011 and grow by nearly 37% to US$0.99bn by

2015.

• Vehicle sales are forecast to reach 128,368 units in 2011 and grow by 32%,

to 169,496 units, by 2015.

Source: Market Research, 27/05/2011, http://www.marketresearch.com/Business-Monitor-International-v304/Romania-Retail-Q3-6398671/

Page 138: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Innovation Romania

Page 139: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail - Lithuania

Page 140: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail - Romania

Page 141: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Eurozone Scenarios

• Debt spiral

• Default

• Recovery

Page 142: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Supermarket Convenience

Stores

Page 143: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

11 Retail Trends for 2011

1. Customers in control

2. Value and values

3. Death of discounting

4. Authenticity (and Fauxthenticity)

5. Vintage retail

6. Store as experience Centres

7. This time it‟s personal

8. The return of Premium

9. Constantly connected

10. All kinds of commerce

11. Considered consumption

Retailit.info, 20/12/10, http://retail-it.info/index.php?option=com_content&view=article&id=5247%3Atop-11-retail-trends-for-2011&Itemid=10

Page 144: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Top Retail Trends - 2011 1. Customers in control

Power is shifting from manufacturers to

retailers, and now to consumers, and now

“shoppers are beating retailers at their own

game”. Technology is driving this trend with

price comparison sites and deal of the day

apps and e-shopping

Retailit.info, 20/12/10, http://retail-it.info/index.php?option=com_content&view=article&id=5247%3Atop-11-retail-trends-for-2011&Itemid=10

2. Value and Values

Value has been the megatrend in retail for the past few

years, but customers are starting to demand that retailers

also espouse “values” such as CSR. We‟re developing a

more sophisticated understanding of value. Consumers

traditionally confused “value” with “price”. Consumers are

becoming less price sensitive and more attuned to quality

goods and good service.

Page 145: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Top Retail Trends - 2011 3. The Death of Discounting Corollary with trend #2. Percentage-off

promotions are running out of puff and discounting is not proving so

effective. In 2011, the answer will lie in engineering real value into

products and services in the first place, carefully and inventively

adding value during promotional periods, and constructing new, more

creative (and fun) ways to grab a bargain – such as allowing shoppers

to club together to get a better deal.

Retailit.info, 20/12/10, http://retail-it.info/index.php?option=com_content&view=article&id=5247%3Atop-11-retail-trends-for-2011&Itemid=10

4. Authenticity (and Fauxthencity) –

cookie cutter retail concepts won‟t

work with consumers who‟ve seen it

all a million times. Consumers in

2011 will increasingly look for

distinctive, “real” retail experiences.

Brands with history will be rewarded

for innovative store and fit out design

and if you don‟t have a narrative –

make one up!

Page 146: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Top Retail Trends - 2011 5. Vintage Retail – You can already see this trend

emerging with numerous stores and it will gather

momentum in 2011. In Japan (often ahead of the

curve in fashion terms), Kinji is a major (and cool)

pre-loved clothing chain, and Book Off is a

massive second hand books, manga and CD

retailer with 866 stores across the country.

6. Store as Experience Centres –

Physical retail needs to play to their

strengths versus the online retailers

(who have myriad advantages - fast

and efficient to browse, compare +

purchase) by delivering an experience

to shoppers. These should be high

tech, highly tactile and designed to

create buzz. Apple is a pass master at

this sort of experience design

Retailit.info, 20/12/10, http://retail-it.info/index.php?option=com_content&view=article&id=5247%3Atop-11-retail-trends-for-2011&Itemid=10

Page 147: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Top Retail Trends - 2011 7. This Time it‟s Personal –

Customisation is a growing trend.

Having something that is „yours‟

not „theirs‟. Nike has been leading

the way in this department selling

a large number of customisable

footwear and apparel lines.

8. Return of Premium – Luxury retail is

coming back. However, retailers can no

longer expect to put a logo on something

and expect to sell. Products will have to

be well-considered, well-crafted,

designed to last, have a story to tell and

are represented in a stunning physical

space in order for consumers to connect

Retailit.info, 20/12/10, http://retail-it.info/index.php?option=com_content&view=article&id=5247%3Atop-11-retail-trends-for-2011&Itemid=10

Page 148: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Top Retail Trends - 2011 9. Constantly Connected – Smart phones have allowed

people to be constantly connected. The trend is growing

rapidly for shoppers to price check and purchase from

their mobile phones in stores. The Wall Street Journal

reported in November 2009 that shoppers using their

mobiles in stores accounted for a mere 0.1 per cent of

visits to retail websites. In 2010 it was 5.6 per cent, an

increase of 50 times.

10. All Kinds of Commerce – The future is

in allowing the consumer to purchase when

and where they want to. Whether using

traditional (in-store) commerce, e-

commerce, m-commerce (mobile), f-

commerce (Facebook), s-commerce

(social) and v-commerce (video-enabled,

e.g.. YouTube).

Retailit.info, 20/12/10, http://retail-it.info/index.php?option=com_content&view=article&id=5247%3Atop-11-retail-trends-for-2011&Itemid=10

Page 149: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Top Retail Trends - 2011

11. Considered Consumption – this defines the post financial crisis consumer. The

days of mindless consumption are gone, and with them the promise of endlessly

rising comparable store sales. The consumer in 2011 is more of a rational consumer

weighing choices and seeking value and the best deal. This is a challenge but as

previously stated good products, well marketed will still succeed.

Retailit.info, 20/12/10, http://retail-it.info/index.php?option=com_content&view=article&id=5247%3Atop-11-retail-trends-for-2011&Itemid=10

Page 150: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail 2020 PwC has set out its vision for retail in 2020

• Environment an important factor – green retailing now a must for the

customer and regulator.

• Individualised service – service and in-store experience are moving away

from one-size-fits all approach. It is now designed with specific target

groups in mind as shopper are a highly differentiated demographic –

working women, baby boomers, singles, teenagers etc. etc. Tesco

Clubcard, Footlocker US‟ „House of Hoops‟

– Service is set to ‗become an even more finely calibrated proposition

between retailer and customer. And service components will evolve

increasingly from reactive to predictive as retailers battle to win the

loyalty of an ever-elusive—and more fragmented—customer base.‘

• Going from Growth – growth in terms of „multiplicity of geographic, online

and format offerings,‟. The needs of the consumer are at the heart of this

trend.

– Tesco again cited with reference to it convenience store strategy in the

US and its meticulous approach to researching its customers

PwC Retail in 2020, [no date], http://www.accenture.com/us-en/Pages/insight-retail-2020.aspx

Page 151: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Growth of Online Retail

Page 152: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Distance Selling

Page 153: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Global Direct Retail Sales (US

Bn $)

WfDSA, 04/02/11, http://www.wfdsa.org/statistics/index.cfm?fa=display_stats&number=2

Page 154: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Global Salesforce Size 1998 – 2009

Millions of People

WfDSA, Global Sales Force, 04/02/11, http://www.wfdsa.org/statistics/index.cfm?fa=display_stats&number=3

Page 155: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Source: CEE Retail, July 2011 http://www.ceeretail.com/wp_946/Warsaw-and-Prague-lose-ground-against-other-CE-capitals-in-terms-of-shopping-centre-

development-July-2011.shtml

Page 156: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail – Czech Republic The Czech Republic‟s May statistics on the retail trade reveal that:

• sales in retail trade including automotive decreased at constant prices by 0.7%,

month-on-month

• working days adjusted sales increased by 1.4%, year-on-year

• Y-o-y increase of non-adjusted sales by 3.2% was influenced mainly by the

development in “wholesale and retail trade; repair of motor vehicles and

motorcycles” and non-food goods.

• Retail sales via mail order houses or via Internet increased for the nineteenth

straight month (+21.0%).

• Sales growth was recorded for sale of clothing, footwear and leather goods in

specialised stores (+9.8%), retail sale of information and communication

equipment in specialised stores (+9.3%), retail sale of cultural and recreation

goods in specialised stores (+7.8%), dispensing chemist, medical and

orthopaedic goods, cosmetic and toilet articles in specialised stores (+5.1%),

and retail sale of other household equipment in specialised stores (+3.4%).

• Food was sold less both in retail sale of food, beverages and tobacco in

specialised stores (-2.8%) and in retail sale of non-specialised stores with food,

beverages or tobacco predominating (-2.5%).

• Retail sale in non-specialised stores sales decreased by 0.9%.

Czech Statistical Office, 04/07/11, http://www.czso.cz/csu/csu.nsf/enginformace/cmal070411.doc

Page 157: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail – Estonia Retail sales volume index of retail trade enterprises and its trend,

January 2002 – April 2011 (2005 = 100)

Statistics Estonia, 31/05/11, http://www.stat.ee/49472

Page 158: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail – Estonia

• In April, the retail sales of goods by retail trade enterprises were 315 million

euros (about 5 billion kroons).

• Sales on manufactured goods increased by 10% on 2009.

• Sales increased across all industries bar pharmaceuticals and cosmetics.

• In April, the retail sales in non-specialized stores increased 18% on 2009

figures.

• Stores selling household goods and appliances, hardware and building

materials and other specialized stores increased retail sales 13% and 12%,

respectively.

• The retail sales in stores selling textiles, clothing, footwear and leather

goods that had been in fall since the beginning of the year, turned to a rise

again in April, growing 6% compared to April of the previous year.

Statistics Estonia, 31/05/11, http://www.stat.ee/49472

Page 162: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail - Latvia • Compared to 2009, retail

trade turnover at constant

prices in 2010 has reduced by

2.2%. Retail in food products

declined by 5.3% and non

food items by

• Compared to November, total

retail trade turnover

calculating at constant

prices in December 2010 has

decreased by 1.4%. Retail

trade of food products has

decreased by 1.9%, but retail

trade of non-food products

diminished by 1.2%.

Latvia Statistics Office, 28/01/11, http://www.csb.gov.lv/en/notikumi/retail-trade-turnover-2010-31832.html

Page 163: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail - Latvia

• Compared to December 2009 total retail trade turnover in December 2010

increased by 8.1%, according to working (trade) day adjusted data,

calculating at constant prices. Non-food product group sales increased by

11.9%. Retail trade of food products grew by 1%.

• In comparison with 3rd quarter of 2010, retail trade turnover according to

seasonally adjusted data at constant prices in 4th quarter of 2010 has

reduced by 0.4%. Enterprises selling mainly food products turnover

decreased by 2.4%. Retail trade turnover in companies selling mainly non-

food products grew by 0.7%.

• Compared to the 4th quarter of 2009, retail trade turnover in 4th quarter of

2010 rose by 7.2%, according to working (trade) day adjusted data. Retail

trade turnover in enterprises selling mainly non-food products increased by

10.7%, but in enterprises selling mainly food products – by 0.8%.

Latvia Statistics Office, 28/01/11, http://www.csb.gov.lv/en/notikumi/retail-trade-turnover-2010-31832.html

Page 164: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail - Lithuania

• The turnover of Lithuania‟s

retail trade, wholesale and

retail trade and repair of

motor vehicles and

motorcycles enterprises

(VAT excluded) was 2.7bn

LTL ($1.121bn) in May

2011

• This is a 4.1% increase in

retail sales in same period

2010

Lithuania Statistics Office, 06/11, http://www.stat.gov.lt/en/

Page 165: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail – Romania Adjusted retail sales in Q1 2011 fell by 5.4% on the same period last year.

Consumption fell across all sectors:

• Food sales fell 10.2% on the year in the first quarter

• Fuel sales were down 6%

• Non-food sales down 2.4%

• Compared with March 2010, Romanian adjusted retail sales decreased by

5.8%

However,

• A Romania Retail report from Q1 2011 forecasts that the country‟s total

retail sales will rise 14% between 2011 and 2014, from a predicted

RON20.65bn (US$8.24bn) in 2011 to a forecast RON23.62bn (US$9.43bn)

by 2014.

• The report credits this potential growth to continuing wage growth, a recent

consumer lending boom and rising disposable income following the

introduction of a new flat rate of income.

• Romania‟s privatisation process since 1990 and EU membership since

2007 have allowed retailers to make progress, contributing to forecast

annual retail sales growth of 4.1% in local currency terms.

BMI Romania Retail Report, 11/10, http://www.slideshare.net/ReportLinker/romania-retail-report-q1-2011

Page 166: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail - Romania • Although the population is forecast to decrease slightly, from 21.4mn in

2011 to 21.1mn by 2014, GDP per capita is predicted to grow 42.7% by

2014, reaching US$10,494.

• Consumer spending per capita is expected to increase from a predicted

US$5,005 in 2011 to US$7,411 in 2014.

• The proportion of the population classified by the UN as economically active

was 70.1% in 2005 and an estimated 70.7% in 2010.

• Retail sub-sectors that are likely to experience strong sales growth over the

period include over-the-counter (OTC) pharmaceuticals, which BMI predicts

will total US$0.6bn in 2011 and grow by more than 39% to US$0.84bn by

2014…

– This could be boosted by factors such as EU membership, privatisation

of the pharmaceutical industry and the consolidation and improvement

in operating conditions in retail and wholesale.

• …and automotive sales. The BMI report believes that the Romanian

automotive market has large untapped potential and will grow from an

estimated US$4.68bn in 2011 to US$8.33bn in 2014, a rise of 78%. At that

time sales are expected to reach 290,000 BMI Romania Retail Report, 11/10, http://www.slideshare.net/ReportLinker/romania-retail-report-q1-2011

Page 167: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

New Products The Romanian ‘iPad killer’

• Romanian company Televoice officially launched last week under its Evolio

brand the Neura tablet which it is positioning as a serious competitor for the

Apple iPad.

• “Our tablet is an iPad killer since it offers more at a similar size and for a fair

price. This proves that Romanians too can launch a high technology product

with exceptional performance onto the market,” said Liviu Nistoran, CEO of

Evolio.

Source: Business Review, 01/08/2011, http://business-review.ro/links/neura-producer-you-can-t-

manufacture-this-kind-of-tablet-in-romania/11959/

Page 168: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

New Products

• “We estimate sales of 4,000-5,000 Neura units in Romania by the end of the

year. We will reach approximately half of the iPad market share, with the

prospect of exceeding this level in December,” said Nistoran. “We are in

discussions with retail outlets in Bulgaria, Hungary and Poland to distribute

the tablet.”

• The Evolio.ro website has received orders from the United States, United

Kingdom, Germany, South Africa and Venezuela.

• The tablet runs on the Android 2.2 operating system and is now available in

local retail stores around Romania.

Page 169: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovakia - Retail

Statistical Office of the Slovak Republic, 06/11, http://portal.statistics.sk/showdoc.do?docid=36877

Page 170: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Slovakia

Turnover in retail trade Year Turnover in retail trade

(Million Euro)

2000 9224,1

2001 9995,6

2002 10 886,9

2003 10 746.4

2004 11 810,3

2005 12 805,4

2006 14 116.4

2007 15 152.2

2008 16 743.8

2009 17 441.2

2010 17 249.1

Statistical Office of the Slovak Republic, 28/06/11, http://portal.statistics.sk/showdoc.do?docid=6608 11/07/11

Page 171: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Innovation Slovakia

UniCredit will be distributing MasterCard branded cards to enable contactless

payment to their customers for use at more than 3000 contactless card

acceptance point throughout Slovakia.

• UniCredit is the first to implement such a service in Slovakia

• Payments over 20 euro will require an authorisation PIN.

• The system will be in place in fast food restaurants, supermarkets, cinemas

and other retail outlets across Slovakia

Source: Near field Communications World, 11/07/11, http://www.nearfieldcommunicationsworld.com/2011/07/11/38502/unicredit-launches-

mobile-contactless-payments-service-in-slovakia/ 12/07/11

Page 172: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Retail Innovation Romania

German discount grocer Rewe Group obviously believes that Romania is a

robust potential market for discount retail. Rewe plans to open an additional 20

„Penny‟ stores in the country on top of the 100 it already operates after 2010

results showed a 4.3% Increase in turnover. (1)

An indigenous success story are Romania‟s wine makers who scooped over 40

prizes in the Decanter, International Wine challenge (IWC) and the International

Wine and Spirit Competition (IWSC), a record level of express.(2)

The success comes on the back of the creation of the La Umbra wine brand

launched by Halewood Romania. The launch follows significant investment, the

use of International varieties and the implementation of international

winemaking techniques. (3)

(1) Just-food, 24/03/11, http://www.just-food.com/news/rewe-group-plans-new-penny-stores_id114723.aspx?d=1 12/07/11

(2) Talking Retail, 04/07/11, http://www.talkingretail.com/products/product-news/romanian-wine-celebrates-winning-streak 12/07/11

(3) Talking Retail, 08/12/10, http://www.talkingretail.com/products/product-news/romanian-wine-celebrates-winning-streak 12/07/11

Page 173: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

The Eurozone crisis - 3 Scenarios • Baseline – the situation in 2011 so far…

• The initial issue of the European Financial Stability Facility (EFSF) was well

received and the emergency meeting of Eurozone heads of government grudgingly

agreed to increase the size of the EFSF/ESM both as measures to reassure

investors

• After what amounted to the failure of its debt auction in early April, Portugal

realised that the future costs were unsustainable.

• The new European Banking Authority has started the 2011 round of bank stress

tests, but stated that banks do not need to make provisions against Eurozone

government bonds held in their „banking book‟.

• will investors be able to add back their own assumptions of losses and test the

capital strength of the banking system?

• Will this reveal the fatal flaw in the process?

• Eurozone governments have committed to preparing contingency plans for the

results of the formal tests, but they are unsure whether these will convince

investors of sovereign and bank solvency.

• There is also the problem of banks that face a failure of a major counter-party in

the inter-bank or derivatives market.

http://www.europesworld.org/NewFrancais/Accueil/Article/tabid/190/ArticleType/articleview/ArticleID/21831/language/en-US/Default.aspx

Page 174: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Scenario 1 – Inflationary Debt

Spiral • Finance ministers gut the Commission‟s already weak economic

governance proposals, and so make it clear to investors that collectively the

Eurozone's governments are unwilling or unable to enforce serious fiscal

discipline. This weakness may become all too apparent from the probable

stand-off with the European Parliament and the ECB.

• Capital flees the Eurozone and short and long-term interest rates rise

significantly in an attempt to prevent the import of rising inflation as the euro

weakens. Extra interest costs add extra strain onto budget deficits and

locks in the debt spiral.

http://www.europesworld.org/NewFrancais/Accueil/Article/tabid/190/ArticleType/articleview/ArticleID/21831/language/en-US/Default.aspx

Page 175: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Scenario 2 - Default

• Finance ministers and the European Parliament agree tough governance

package

• But at an risk state rejects the harsh measures called for and baulks

investors leading to default . Steadier states fear a domino effect in other

weakened states

• Potential losses are vast as demonstrated by the stress tests and we see a

spate of bank nationalisations.

• Some Eurozone members leave the EU and revert to their past currencies,

based on large and overly competitive devaluations

• Fury in other Eurozone states quickly leads to the breakdown of the

political and economic union.

• The EU ceases to operate as an organised political system

http://www.europesworld.org/NewFrancais/Accueil/Article/tabid/190/ArticleType/articleview/ArticleID/21831/language/en-US/Default.aspx

Page 176: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Scenario 3 – Federal Eurozone

Emerges • A strong, federal „Eurozone‟ emerges.

• Eurozone members conclude that it is in their best interest to avoid a collapse of the

euro and decide that anything and everything must be done to save it

• They agree an economic governance package that goes well beyond the

Commission proposals and helps steady the bond markets.

• Tougher regulation ensures that the banking system will not become over-exposed

again.

• Members agree a vastly engorged EU rescue fund

• At risk states will be encouraged to take assistance at an early stage rather than

when disaster is at door

• Collective guarantees ensure recovery in the bonds market

• Europe becomes a little insular in this period, focusing on getting its house in order,

enlargement is put on hold and relations with non-Eurozone members are cooled.

• After a couple of years members finances have improved sharply and the Euro

strengthens, reducing the risk of importing inflation and improved regulations reduce

the risk of a repeat o f the crisis

http://www.europesworld.org/NewFrancais/Accueil/Article/tabid/190/ArticleType/articleview/ArticleID/21831/language/en-US/Default.aspx

Page 177: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Supermarket ‘Convenience’

Stores • It‟s well over 10 years since Tesco Express and Sainsbury‟s Local first

opened their doors, and Waitrose have just opened their first „little

Waitrose‟.

• Critical to understand how shoppers needs differ in this new retail

environment.

• These convenience stores are changing the ways on which people are

shopping

– 45% of food brought in a supermarket convenience store is consumed

immediately

– 15% of shoppers are in store to buy something they need urgently as

they have run out

– bread shoppers for example will spend less than 25 seconds at fixture in

a convenience store so POS needs to be extra simple and impactful.

Associated products need to be in reach as few shoppers will look

round the whole store.

Source: him! Research and consulting, 2011, http://www.him.uk.com/webfiles/Documents/Supermarket%20convenience%20stores.pdf

Page 178: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Supermarket ‘Convenience’

Stores • The art of convenience stores is getting people in and out as quickly as

possible having bought everything they came for.

• It is also very important to get shoppers to buy „just one more item‟ as this

often represents a „30-50%‟ increase in basket size.

• A convenience store shopper is not price sensitive. Fewer than 50% of

supermarket convenience shoppers check the price of an item before

buying and 2/3 shoppers will pay more in convenience stores that they

would in the supermarket

• 62% of customers walk to the store so bumper pack offers and volume

promotions are less relevant.

• Staff upselling can have a greater impact in the convenience store. Him!

Say that promotional penetration can triple when a staff member tells the

shopper about a promotion

Source: him! Research and consulting, 2011, http://www.him.uk.com/webfiles/Documents/Supermarket%20convenience%20stores.pdf

Page 179: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Race to the Middle • The UK high street (and elsewhere in the developed world) is facing hugely

challenging trading conditions at present.

• Debenhams is one retailer which might have been expected to find the

going tough. However it‟s recently released result suggest otherwise and

this is not merely down to their clever management team and product mix

research

• Debenhams is often bracketed with Marks & Spencer and Next in the mass

market end of the middle market. At present this seems to be the place to

be in the market. The squeeze on incomes that is hurting the retail market is

being felt most keenly by the value end of the market. Those in the middle

are holding up ok.

• The hardest hit are those on the lowest incomes and much of their spend

goes on consumables (food, petrol etc.) leaving little discretionary spend. As

a result value supermarkets are doing well.

Retail week, 04/07/11 http://www.retail-week.com/blogs/retail-day/middle-of-somewhere/5026886.blog

Page 181: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Luxury Retail Europe Europe‟s share of the global $238.9bn market in

luxury goods rose to 37% in 2010 from 35% in

2004(1)

• The growth in the market is largely based on

Asian influences, based on soaring numbers

of high spending visitor, particularly from

China.

• Many high end retailers are reinvesting in

Europe with boutiques springing up in Paris,

Italy

Consultancy Bain & Co raised its 2011 growth

forecast for luxury sales to 8% after recent sales

data from groups such as LVMH and Burberry (2)

• Bain estimates that luxury sales will grow 5-

6% in 2012 and 2013.

– This growth is expected to be driven by

buyers in emerging markets, Europe and

the US

(1) WSJ, 23/03/11, http://online.wsj.com/article/SB10001424052748703726904576192600105705670.html 12/07/11

(2) The Guardian, 03/05/11, http://www.guardian.co.uk/business/2011/may/03/luxury-goods-market-back-on-track 12/07/11

Page 182: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Luxury Retail Eastern Europe

2010 luxury goods sales figures continued a downward trend in Eastern

Europe.

Sales in the first half of 2010 dropped by as much as 30% in some sectors.(1)

• Automotive sales were hardest hit with sales drops of approx. 30% in

Romania, Bulgaria, Serbia, Hungary and Ukraine. The Czech Republic

suffered a smaller decline

• Jewellery and watch sales also suffered, seeing declines up to 15% in all

markets

• Luxury fashion declined by up to 10%

(1) CPP-Luxury, 03/10/10, http://www.cpp-luxury.com/en/most-luxury-markets-in-central-and-eastern-europe-continue-downtrend_939.html

12/07/11

Page 183: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Innovation – Czech Republic

• Classed among the moderate innovators with innovation performance below

the EU27 average

• Rate of improvement above that of the EU27.

• Relative strengths in Firm investments, Innovators and Economic effects

• Relative weakness is in Throughputs.

• Over the past 5 years Firm Investments and Throughputs have been the

main drivers of improvement. In particular from strong growth in:

– S&E and SSH graduates (18.1%)

– Venture capital (26.6%)

– Private credit (13.6%)

– Broadband access by firms (20.1%)

– Community designs (24.5%)

– Technology Balance of Payments flows (14.5%).”

European Innovation Scoreboard, 2009, http://www.proinno-europe.eu/page/european-innovation-scoreboard-2009

Page 184: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Innovation – Czech Republic

Page 185: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovakia - Innovation

Page 187: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Estonia - Innovation

• Estonia classed as an innovation „follower‟ just below EU average

• Rate of improvement above EU average

• Relative strengths in Finance and Support, Firm Investments, Linkages &

Entrepreneurship and Innovators

• Relative weakness in Throughputs

• Over the past 5 years Firm Investments and Throughputs have been the

main drivers of improvement. In particular from strong growth in:

– Business R&D spend (20%)

– Non R&D innovation spend (29.3)

– Community Trademarks (14.5%)

– Technology Balance of Payment flow (16.9%)

European Innovation Scoreboard, 2009, http://www.proinno-europe.eu/page/european-innovation-scoreboard-2009

Page 189: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Latvia – Innovation

• Classed as a catching-up country with performance well below the EU

average

• Rate of improvement above EU average

• Relative strengths in Human resources and Finance and support

• Relative weaknesses in Linkages & entrepreneurship, Throughputs and

Innovators

• Over the past 5 years Finance support and Throughputs have been the

main drivers of improvement. In particular from strong growth in:

– Public R&D spend (12.5%)

– Private credit (15.4&)

– EPO patents (17.8%)

– Community trademarks (35.9%)

– Community designs (21%)

European Innovation Scoreboard, 2009, http://www.proinno-europe.eu/page/european-innovation-scoreboard-2009

Page 191: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Lithuania – Innovation

• Classed as a moderate innovator with performance well below the EU

average

• Rate of improvement above EU average

• Relative strengths in Human resources, finance and support and Linkages

and entrepreneurship

• Relative weaknesses in Firm investments, Throughputs and Innovators

• Over the past 5 years Human resources, Finance and support and

Throughputs have been the main drivers of improvement. In particular from

strong growth in:

– S&E and SSH doctorate graduates (14.8%)

– Private credit (21.5%)

– EPO patents (15.5)

– Community trademarks (26.8%)

European Innovation Scoreboard, 2009, http://www.proinno-europe.eu/page/european-innovation-scoreboard-2009

Page 193: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Romania - Innovation

• Classed as a growth leader among the catching-up countries with performance

well below the EU average. But…

• Rate of improvement that is one of the highest of all countries

• Relative strengths in Innovators and Economic effects

• Relative weaknesses in Finance and support and Throughputs.

• Over the past 5 years Finance and support and Throughputs have been the

main drivers of improvement. In particular from strong growth in:

– Public R&D spend (18%)

– Private credit 25.8%)

– Broadband access by firms (46.7%)

– Community trademarks (34.5%)

– Community designs (37.3%)

• Performance in Firm investments, Linkages & entrepreneurship, Innovators and

Economic effects has increased at a slower pace

European Innovation Scoreboard, 2009, http://www.proinno-europe.eu/page/european-innovation-scoreboard-2009

Page 194: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Slovakia - Innovation

• Classed as one of the catching up countries with performance well below

the EU average

• Rate of improvement above EU average

• Relative strengths in Firm investments and

• Economic effects

• Relative weaknesses in Finance and support,

• Linkages & entrepreneurship, Throughputs and Innovators.

• Over the past 5 years Finance and support and notably Throughputs have

been the main drivers of improvement. In particular from strong growth in:

– Broadband access by firms (33.3%)

– Community trademarks (34.1%)

– Community designs (19.1%)

European Innovation Scoreboard, 2009, http://www.proinno-europe.eu/page/european-innovation-scoreboard-2009

Page 195: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Online Retail Growth Forecast

Online retail in EU and US expected to achieve double digit growth to 2015

• At a 10% Compound Annual Growth Rate (CAGR) to 2015 the US online

retail market will would grow to $279bn.

• In Western Europe a 10% CAGR would see the market reach a value of

134bn euro

• By 2015, 68%of online adults in Western Europe will have made a

purchase online; the figures for Northern and Southern Europe are 80% and

50% respectively

BizCloud, 12/07/11, http://bizcloudnetwork.com/2011/online-retail-in-us-and-western-europe-to-experience-double-digit-

growth/ 12/07/11

Page 196: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

NFC in Czech Republic

• Telefonica Czech Republic, Komercni banka, Citibank Europe, Globus CR

and VISA Europe have launched a pilot project to trial contactless mobile

payments with real customers in the Globus hypermarket in Prague.

• The new technology carries over the functions of a classical payment card

to a mobile telephone SIM card. The modern trend further improving the

payment safety and comfort is coming to the Czech Republic. The payment

card application on a SIM card should become part of the standard offering

in 2012.

• The six-month project was launched July 22nd 2011, it will collect information

about the actual use of the contactless mobile payments and prepare the

commercial launch of this service. Two hundred customers of Telefonica

and Citibank and two hundred customers of Telefonica and Komercni banka

will participate in the project, they can use the new technology at the tills of

selected Globus hypermarkets - in Chotikov u Plzne and in three Globus

hypermarkets in Prague (Cerny Most, Cakovice and Zlicin).

Source: TMC Net, 2011 http://iphone.tmcnet.com/news/2011/07/22/5654938.htm

Page 197: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

NFC in Czech Republic

• The payment application recorded on Telefonica SIM cards was provided by

the card association VISA Europe.

• Over 260 million terminals are expected to be available for the NFC

payments globally in 2014. The advantage of the NFC enabled handsets

lies in particular in improving the comfort and intuitive use of payments. The

payments are simple and safer and the same time, as users have

permanent control over their devices.

Source: TMC Net, 2011 http://iphone.tmcnet.com/news/2011/07/22/5654938.htm

Page 198: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Distance Selling

• 88% of Czech retailers that were selling their products or services in other

EU countries said they also actively advertised their products or services to

consumers in other EU countries.

Source: Europa, 2011 http://ec.europa.eu/public_opinion/flash/fl_300_en.pdf

Page 199: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Digital Signage in Romania

• Cisco has announced the deployment of Cisco Digital Signs at Unirea

Shopping Centre, one of the largest retail complexes in Bucharest.

• At Unirea, Cisco Digital Signs, part of the Cisco Digital Media Suite (DMS),

are used to provide a centralised streaming of graphics and video over the

Internet Protocol (IP) network to 85 wide-screen displays located across the

mall.

• The Cisco Digital Signs solution is used to run in-mall advertising for

tenants. It helps the mall operator create a differentiated offer, retain a rental

premium, and generate new revenue streams.

• Carmen Adamescu, president and chief executive officer, Unirea Shopping

Centre, said: "Unirea stores are keen to advertise their products, and in-mall

advertising is probably the best way to reach customers in a targeted way. “

Source: Retail Technology Review, 14/07/2011,

http://www.retailtechnologyreview.com/absolutenm/templates/retail_supply_chain.aspx?articleid=1201&zoneid=1 g

Page 200: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

‘Scan It’

Scan it is a product from Motorola. Its is used by the Dutch grocer Ahold in a

selection of their stores in Sweden, Belgium, the US and the Czech

Republic.(1)

• The system allows shoppers to scan and bag their groceries as they go

using a handheld device.

• While increasing throughput the device also allows retailers to advertise to

the shopper through the handset. The device commonly shows shoppers

what‟s on sale, enticing greater spend per shopper.

– Ahold says that shoppers using scan it spend approximately 10% over

the average

Ahold has now created a smartphone app version of Scan It. it is trialling in the

states and shows the evolution of the product from launch in the US in 2007(2)

(1) Kezi News, 27/06/11, http://kezi.com/news/local/216280 12/07/11

(2) Ahold, [no date], http://www.ahold.com/node/3872, 12/07/11

Page 201: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Mobile Commerce

Page 202: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Near Field Communications

Page 203: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Mobile Contactless Payments

Trial In mid 2011 Komerční banka, Citibank Europe, Globus ČR, VISA Europe and

Telefónica O2 Czech Republic are due to launch a project trialling mobile

contactless transactions (1)

• The project hopes to learn about how people actually use contactless

payment

• The CR is thought to have wide potential for such technology

• Consumers are expected to use the technology to pay for inexpensive items

in particular. If the cost of the good exceeds a predetermined limit then the

customer is asked to enter a verification code.

Contactless payment is increasing in popularity in the CR. On the back of the

Globus trial McDonalds is considering installing the technology in its stores –

they are waiting for their provider UniCredit bank to introduce the system in

stores. (2)

(1) KB, 24/03/11, http://www.kb.cz/en/about-the-bank/press-room/press-releases/mobile-contactless-payments-in-the-czech-republic-pilot-

project-to-take-off-in-mid-2011-1191.shtml 12/07/11

(2) CzechTrade, 02/06/11, http://www.czechtrade-china.cn/en/news/detail-19389/ 12/07/11

Page 204: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Fits.Me Fits.Me is a virtual fitting room for online retailers. The technology has been developed at two Tallinn based universities and a German company providing anthropometrical data.(1)

• “Lack of a fitting room is the biggest problem for apparel eCommerce.

Fits.me is helping clothing retailers increase the sales, and decrease costs

associated with returns”

(1) Fits.Me, [no date] http://fits.me/content/about-us 12/07/11

• Fits.Me has designed a robotic

mannequin that exactly replicates the

buyers dimensions and allows the

buyer a far better preview of how the

items will look when delivered. It is

hoped the technology will help to

increase sales and minimise returns

Page 205: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Fits.Me

This has come to the market on a backdrop of surging online sales. A report

from Forrester Research noted that online sales of apparel, accessories and

footwear reached $27bn in 2009 on 17% year-on-year growth. Double digit

grow this forecast for online apparel sales over the next several years.

―Online apparel sales to date have been exceptionally challenging due to the

lack of a fitting room. However, it is also the fastest growing e-commerce

category and will produce an estimated annual revenue of $31 billion dollars in

the US in 201. Only 8% of clothing is currently sold online, and Fits.me Virtual

Fitting Room is the disruptive technology that will enable online apparel

retailers to successfully compete with traditional brick-and-mortar clothing

shops.‖

- Heikki Haldre, CEO and co-founder of Fits.me

Fits.Me, 22/12/10, http://fits.me/news/fitsme-virtual-fitting-room-closes-%E2%82%AC13-million-second-round-funding 12/07/11

Page 206: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Image Sources p.1 Page

1. http://www.ambersoundfm.com/advertise.php

3. Clockwise

1. http://www.imperial-consultants.co.uk/files/biopharmaceuticals.jpg

2. http://www.nanotechnologyinvesting.us/images/nanotechnology-480.jpg

3. http://teamaltman.com/wp-content/uploads/2010/10/industry-and-data.jpg

4. http://www.lostateminor.com/wp-content/uploads/2008/04/vertical_farming_1.jpg

5. http://cdn.lightgalleries.net/4bd5ec0d18599/images/Cocoon_05-2.jpg

6. http://takemetoyourleader.com/wp-content/uploads/2010/10/010101.jpg

7. http://www.etftrends.com/wp-content/uploads/2011/07/1_fullsize.jpg

4. http://www.wadefinancial.co.uk/wp-content/uploads/2010/06/5-Big-Questions.jpg

5. http://www.piperreport.com/archives/Images/Medicare%20PFFS%20Plans.jpg

6. http://www.einstein.yu.edu/iphs/images/think_tank.jpg

7. http://creativeclass.typepad.com/thecreativityexchange/images/2007/12/01/global.jpg

12. http://sanfrango.com/retail/2011/september/images/retail_trends_sep_graphic.jpg

13. Clockwise

1. http://honeymoons.about.com/od/easterneurope/ig/Estonia/Shopping-in-the-Old-Town.htm

2. http://www.lu.lv/fileadmin/user_upload/lu_portal/eng/research-conferences-seminars/est-lat.gif

3. http://eng.meeting.lv/incoming/shopping-latvia.php

4. http://www.adventisti.lv/_images/logo/baltic-states.gif

5. http://www.panorama.lt/shops?p=8

14. http://luxurystudies.blogspot.com/2011/01/luxury-case-studies.html

15. Clockwise

1. http://www.thisislondon.co.uk/standard-business/article-23932016-debenhams-warns-of-a-tough-year-and-waning-sales.do

2. http://www.guardian.co.uk/business/2010/aug/04/next-retail-industry-sales

3. http://www.dailymail.co.uk/news/article-530131/M-S-shopper-slipped-grape-sues-300-000.html

16. http://www.geekwithlaptop.com/wp-content/uploads/2011/05/evolio-neura.jpg

Page 207: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Image Sources p.2 17. Left to Right

1. http://socialmediaseo.net/wp-content/uploads/2011/01/groupon-daily-deal-international.jpg

2. http://www.logoblog.org/images/apple-logo-aqua.png

18. Left to Right

1. http://blogs.freshminds.co.uk/talent/wp-content/uploads/2009/01/aldi.jpg

2. http://www.theshinywave.com/wp-content/gallery/post-images/google-dr-evil-free-ideas.jpg

19. Left to Right

1. http://images.apple.com/retail/images/store_photos/photo_fifthavenue.jpg

2. http://a1.l3-images.myspacecdn.com/images02/8/ad8f2cda1d88483882e268f9b0bcc7c7/l.jpg

20. http://prague.tv/articles/shopping/boho-pop-up-store

21. http://bratislava-slovakia.info/43/my-bratislava-tesco-department-store-fitch/

22. http://cdn.trendhunterstatic.com/phpthumbnails/103/103287/103287_1_600.jpeg

23. http://www.fastcodesign.com/1662241/wheeeeeee-slides-made-for-adults-in-dire-need-of-fun-video

24. http://images.businessweek.com/ss/06/11/1102_adidas/source/1.htm

25. Left to Right

1. http://media.marketwire.com/attachments/201007/MOD-618600_Cisco_Digital_Signage_at_Unirea_Shopping.jpg

2. http://farm5.static.flickr.com/4100/4777811270_9159c93088.jpg

26. http://www.maximumpc.com/files/u45851/online_retail.jpg

27. http://www.coolest-gadgets.com/20090225/scan-it-allows-you-to-check-out-your-own-groceries/

28. http://www.reghardware.com/2010/08/11/video_rim_blackberry_torch_9800/

29. http://uk.creditcards.com/credit-card-news/google-phone-contactless-payments-1377.php

30. http://trendsupdates.com/year-2012-could-become-the-year-of-personalized-advertising-with-

%E2%80%98gladvertising%E2%80%99/

31. http://www.neorealismovirtuale.com/nervi-fakepress/wp-content/uploads/2010/01/QRN_01331.jpg

33. http://www.crunchbase.com/assets/images/original/0007/4057/74057v2.jpg

34. http://web2visit.com/shopping/fits-me-virtual-fitting-room-for-online-clothing-retailers

35. http://web2visit.com/shopping/fits-me-virtual-fitting-room-for-online-clothing-retailers

Page 208: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Image Sources p.3 36. Left to Right

1.

http://1.bp.blogspot.com/_Dwut6QAnJ0U/SQ2QYPwh0_I/AAAAAAAAAw8/flO5W9BWXx0/s400/Westfield+London+store+fin

der.jpg

2. http://chingll.files.wordpress.com/2009/10/gap-iphone-app.png

37. Left to Right

1. http://www.abcom-inc.com/accessories/images/av/k/Kiosk-1.jpg

2. http://www.fahad.com/pics/microsoft_surface.jpg

38. http://www.qupage.com/photos/touchfoils_clip_image003.jpg

39. http://www.tensator.com/blog/post/2011/01/31/London-Luton-Airport-Introduces-Two-New-Staff-Members-Holly-and-

Graham.aspx

40. http://www.livetradingnews.com/wp-content/uploads/hp_3d_laptop.jpg

41. http://www.argophilia.com/news/wp-content/uploads/2011/03/copenhagen-airport-app.jpg

42. http://www.tuvie.com/wp-content/uploads/your-life-in-2020-frog-design1.jpg

43. http://www.flickr.com/photos/lukedebruijn/3991431571/

44. http://4.bp.blogspot.com/_LYLNQSJkOcM/TMOyFH7Hv3I/AAAAAAAAACE/ISxznCcG6gw/s1600/SkinputImg1.jpg

45. http://dailythings.info/wp-content/uploads/2009/11/largest-wearable-display_d57eq_54.jpg

46. http://www.limsi.fr/~jps/enseignement/examsma/2004/BHATTI/images/mb_ubicom2.jpg

47. Top to Bottom

1. http://www.psfk.com/wp-content/uploads/2009/06/pic-rapid-prototyping-and-jewelry.png

2. http://www.treehugger.com/files/2010/10/on-demand-3d-printing-cut-waste-increase-efficiency.php

48. http://classroomtocubicle.com/wp-content/uploads/2011/01/CtoC-image-15-binoculars.jpg

49. http://www.kynsale.com/Images/KeyImages/Psychographics.png

50. http://www.jerryhart.com/wp-content/uploads/social-media-excitement.jpg

51. http://assets.nydailynews.com/img/2008/11/29/alg_target_shoppers.jpg

52. http://files.posterous.com/karenm/HdgxeBfankFFBkgGEEhtpGdkpsklGzkcrFovpwdgInEdpyiviEHuAzAbJimF/media_httpwww

poplarcomcnimgstoredaybig6jpg_pxdCpxFidjvnErH.jpg.scaled1000.jpg?AWSAccessKeyId=1C9REJR1EMRZ83Q7QRG2&E

xpires=1272198919&Signature=Y5QHiaiiGdD10gHuOTChtbX%2Bjyo%3D

Page 209: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Image Sources p.4 53. http://www.architecture-page.com/assets/images/content/prj_iosa_ferr/4.jpg

54. Left to Right

1. http://stuckattheairport.com/wp-content/uploads/2009/03/amschoc1-300x199.jpg

2. http://www.moodiereport.com/images/amsterdam_boulevard_gallery_04.jpg

55. http://i.dailymail.co.uk/i/pix/2008/11/28/article-1090034-02A02142000005DC-997_468x304_popup.jpg

56. http://freakonomics.blogs.nytimes.com/2010/04/09/freak-shots-pay-what-you-think-is-fair/

57. Left to Right

1. http://www.writing-success.net/blog/wp-content/uploads/2009/02/article-marketing.jpg

2. http://www.scottselfstorage.co.uk/dynamicdata/data/low-price-guarantee.gif

58. http://www.thaipr.net/nc/readnews.aspx?newsid=288c78b58d8eab4f8027cdec8130406f

59. http://i.zdnet.com/blogs/auctions-cheap-apple-macbook-mb466ll_a-133-inch-laptop-auctions-bid-win-on-swoopo.jpg

61. http://pixdaus.com/pics/1235150831s9prE2s.jpg

64. http://www.cs.miami.edu/~geoff/Personal/Diving/Pictures/DuaneAOW.JPG

65. http://www.ripleys.com/assets/img/upload/bions/magnet_man.jpg

66. Outside in

1. http://www.masternewmedia.org/images/social_network_id469214_size440.jpg

2. http://i36.tinypic.com/vrxzll.jpg

67. http://www.artlex.com/ArtLex/ij/images/imagination_einstein.gif

85. http://www.proinno-europe.eu/page/european-innovation-scoreboard-2009

86. Left to Right

1. http://www.masdarctf.com/images/aboutus_image.jpg

2. http://www.operationnoah.org/images/uploads/Burning_planet_411x220.jpg

87. http://www.blogcdn.com/www.downloadsquad.com/media/2009/07/ms-store-concept.jpg

88. http://karmatrendz.wordpress.com/2009/03/29/michelin-amazing-retail-store-interior-by-eventscape/

89. http://59seconds.files.wordpress.com/2009/09/curiosity.jpg

90. http://files.coloribus.com/files/adsarchive/part_826/8264155/file/axn-channel-boarding-pass-small-24894.jpg

Page 210: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Image Sources p.5 91. http://www.gulfcoastpower.org/default/s08binoculars.jpg

94. http://www.happytellus.com/shopping/prague/czech-republic

95. http://www.immo-news.net/photo/art/default/1257555-1643170.jpg?v=1289432075

96. http://banknotesinfo.com/CZECH/Czech-28.jpg

102. http://intermezzo.typepad.com/.a/6a00d834ff890853ef00e5539bdbb98834-500wi

103. Left to Right

1. http://www.praguepost.com/pictures/1-20110309-7809-5061-pic.jpg

2. http://www.goldendrum.com/tempgal/2010/W/imgs/W063.jpg

104. Clockwise

1. http://www.german-retail-blog.com/wp-content/uploads/2010/09/Kaufland.jpg

2. https://www.theimagefile.com/v/tp/202/183/5851050202_4_kaufland-prague-alcohol.jpg

3. https://www.theimagefile.com/v/tp/202/177/5851049002_4_kaufland-prague-deep-freeze.jpg

105. http://kreativne-mesto.governance.sk/wp-content/uploads/eurovea-041.jpg

107. http://www.nytimes.com/2010/07/23/greathomesanddestinations/23iht-rebrat.html

111. http://www.nfctimes.com/report/polish-telco-and-bank-express-interest-nfc-bemoan-lack-phones

112. http://www.joneslanglasalle.cz/CzechRepublic/EN-GB/Pages/PropertyDetail.aspx?ItemID=5570&MType=SQMTRS

117. http://feed.ne.cision.com/wpyfs/00/00/00/00/00/10/61/BB/tuotekehittaja_web.jpg

119. http://thisislavie.com/wp-content/uploads/2008/12/reeb1.jpg

122. http://www.adventisti.lv/_images/logo/baltic-states.gif

123. http://honeymoons.about.com/od/easterneurope/ig/Estonia/Shopping-in-the-Old-Town.htm

124. http://www.ohtallinn.com/?m=content&c=175&id=136

125. http://www.shipspotting.com/gallery/photo.php?lid=1135220

126. http://www.signwarehouse.com/blog/wp-content/uploads/2009/03/inventorysmall-300x198.jpg

130. http://www.panorama.lt/shops?p=8

131. Left to Right

1. http://cdn.trendhunterstatic.com/phpthumbnails/103/103287/103287_2_600.jpeg

2. http://cdn.trendhunterstatic.com/phpthumbnails/103/103287/103287_3_600.jpeg

Page 211: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Image Sources p.6 132. http://eng.meeting.lv/incoming/shopping-latvia.php

133. http://www.lu.lv/fileadmin/user_upload/lu_portal/eng/research-conferences-seminars/est-lat.gif

138. Top to Bottom

1. ttp://www.romania-insider.com/rewe-group-plans-penny-market-network-expansion-in-romania-with-20-stores-this-

year/20812/

2. http://www.chalie-richards.co.uk/our-wines/la-umbra/la-umbra-wines

139. http://www.getwokingham.co.uk/lifestyle/travel/s/2094815_travel_lovely_lithuania

140. http://www.smileromania.com/en/romania/what-to-buy-in-romania/

141. http://www.dailymail.co.uk/news/article-1333332/Eurozone-crisis-sends-FTSE-tumbling-red-Portugal-faces-pressure-seek-

bailout.html

142. Top to Bottom

1. http://www.retail-systems.com/blog/?tag=tesco

2. http://www.j-sainsbury.co.uk/index.asp?PageID=432&section=&Year=2010&NewsID=1323

143. http://ecopreneurist.com/2008/08/20/six-retail-trends-you-need-to-know-about/

144. Top to Bottom

1. http://www.simplyzesty.com/social-media/rise-group-buying-sites-social-crucial-success/

2. http://www.blog.marketecture.co.uk/2010/08/scary-brand-lessons-from-confused-com/

3. http://milkbaby-yoyo.blogspot.com/2011/05/i-uniqlo.html

145. Top to Bottom

1. http://www.buzzom.com/2011/02/apple-ipad-2-to-be-launched-on-march-2/

2. http://thefoxisblack.com/2009/01/12/rrl-co-ralph-lauren-pop-up-shop/

146. Top to Bottom

1. http://www.narunatsu.com/blog/february-2011/

2. http://blogs.coventrytelegraph.net/passtheremote/2010/06/index.html?page=13

147. Top to Bottom

1. http://www.freaksurfmag.com/contest-hurley-us-open-of-surfing-backstages-and-behind-the-scenes-371.html

2. http://www.dailymail.co.uk/news/article-486164/Battle-oligarchs--amazing-showdown-Roman-Abramovich-arch-rival.html

Page 212: Rohit Talwar  ICSC Baltic Retail Conference Presentation - Cctober 20th 2011

Image Sources p.7 148. Top to Bottom

1. http://retailtechnologytrends.wordpress.com/2011/03/16/2011-11-mobile-barcode-scanning-in-store/

2. http://www.inspirationspam.com/index.php/tag/youtube/

149. http://media.photobucket.com/image/audi/fade_to_black/All-logo.png?o=4

162. http://krikor.info/?p=762

167. http://www.geekwithlaptop.com/wp-content/uploads/2011/05/evolio-neura.jpg

201. http://opengardensblog.futuretext.com/archives/mcommerce.bmp

202. http://www.squidoo.com/near-field-communication?utm_source=google&utm_medium=imgres&utm_campaign=framebuster

204. http://techcrunch.com/2010/09/22/fits-me-raises-1-75-million-lets-you-try-on-clothes-before-you-buy-%E2%80%93-on-the-

web/