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Copyright © 2015 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential THE WORLD IS CHANGING

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Copyright © 2015 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential

THE WORLD IS CHANGING …

Copyright © 2015 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential

The Current Retail Business Environment

•  Falling gas prices = windfall for US consumers

•  Employment trends

•  West Coast port impact

•  Fashion Trends, Spring 2015

•  Calendar Impact

Copyright © 2015 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential

Falling Gas Prices = Windfall for U.S. Consumers •  Gas prices are down about 40% since June, one of the steepest drops since

the 2008 financial crisis. Adds an extra $750 into consumer wallets on an annualized basis.

Through December 31, 2014 Regular grade average Source: Energy Information Administration and Haver Analytics

(60%)

(50%)

(40%)

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(10%)

0%

10%

20%

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Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15

Weekly U.S. Regular Conventional Retail Gasoline Prices (Dollars per Gallon)

Gas Price YoY% Change

$2.26

Copyright © 2015 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential

4  

Real Personal Disposable Income and Wages Begin to See Gains

•  Wages and salaries expanded at a 4.8% YoY rate in December, the fastest pace in 2014

•  The increase beat the 4.6% YoY increase in personal income, laying the foundation for a possible acceleration in consumer spending in 2015

•  For 2014, wages and salaries increased 4.3%, again beating the 3.9% gain in personal income.

•  Walmart & TJX raise hourly wages Through  December  31,  2014  Source:  Bureau    of  Economic  Analysis    

Real Disposable Income & Wages and Salaries YoY %

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0    

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04   05   06   07   08   09   10   11   12   13   14   15  

Wages  &  Salaries    Disposable  Personal  Income  

4.8  3.7  

Copyright © 2015 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential

West Coast Port Impact

100 ships are still held up: 800,000 containers are currently backlogged

•  Late arrival of seasonal products, such as flip flops & peat moss, will affect overall sales

•  Will affect retailers potentially into early summer

Copyright © 2015 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential

Top 8 Fashion Trends, Spring 2015

1.  Bohemian to minimalism, it all works for Spring 2015

2.  New denim silhouettes – dresses, skirts and flared bottom pants

3.  Hippy deluxe, complete with Marrakech maxi dresses

4.  Uneven hemlines, peekaboo fabrications, see-through inserts and just sultry sheer

Copyright © 2015 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential

Top 8 Fashion Trends, Spring 2015

5.  The Statement Coat

6.  Mix and Match, designers and prints

7.  Platform shoes iterate into Flatforms

8.  The Princess effect—with Cinderella opening March 13 glistening (not glass) shoes and slippers, tiaras and princes are the season’s must have

Copyright © 2015 Planalytics, Inc. All Rights Reserved. Proprietary and Confidential

Calendar Impact

•  An early Easter (15 days earlier than 2014) limits sales of Spring apparel

•  Should set up for strong March comparisons

could add one percentage point to March YoY sales growth

and subtract one percentage point in April

APRIL 2014 Passover: April 14 – 22 Easter: April 20

APRIL 2015 Passover: April 3 – 11 Easter: April 5