The Source – How to create the ultimate retail engagement

The Source – September 23, 2015

Ron Craig VP Marketing and Business Development, The Source

The Source – September 23, 2015 The Source •  Small box consumer electronics

and communications retailer •  In Canada for 40+ years •  1970s – RadioShack

2004 – The Source by Circuit City 2009-present – The Source

•  Owned by Bell Canada •  550+ branded locations across

Canada

The retail landscape is changing

The Source – September 23, 2015

•  Multiple major retail closures in Canada •  Challenging environment •  Consumers shifting from retail to online •  Lack of innovation in the space •  Demand is relatively flat

Bigger isn’t better

The Source – September 23, 2015 Small box well-suited to weather and succeed in downturn economy Small environment model lends itself to personalized service experience Small size allows for more flexibility Size is not a limitation as technology gets smaller

Retail transformation – Challenges

The Source – September 23, 2015 Store design that promotes personalized service experience Communicate brand, identity and positioning From accessory offerings to top-tier brands Streamline categories Introduce emerging categories to stay relevant

Process The Source – September 23, 2015

•  Collaborative process •  Ideation sessions created alignment •  Communication kept team on track •  Frequent updates stimulated

engagement and momentum •  Mock store fostered collaboration •  Encouraged feedback from the frontlines

Goals and objectives

The Source – September 23, 2015 Reinforce branding elements Appeal to broader demographic More female friendly Grow and showcase core categories Increase traffic and basket size Leverage strengths to create a better store

Execution The Source – September 23, 2015

•  Evolved from convenience store environment to experiential destination

•  Improved sight lines •  Interactive demonstration table displays •  Applied best-in-class merchandising •  Softer, more comfortable store

experience

Immersive store experience The Source – September 23, 2015

•  Digital technology as a communication vehicle

•  Encourages interaction •  Showcases categories and brands •  Sends messaging to consumers •  Creates a more dynamic and inviting

shopping experience •  Draws people in

Results The Source – September 23, 2015 Strong growth in traffic at Yorkdale

location in year-over-year metrics Store looks significantly more impressive Scalable prototype will roll-out across the network

Insights The Source – September 23, 2015

Get early alignment across the organization Communicate to keep people involved and engaged to reach key decision points Be flexible, things change

Question Period 1.800.747.5150 Access: 5697142

The Source – September 23, 2015