It’s been a year in retail like no other.
The retail industry is in the midst of unprecedented disruption - the days of slow, strategic planning are part of a bygone era. There have been record store closings, aggressive new retail concepts, major retail acquisitions, restructuring and bankruptcies.
To survive and thrive, retailers are pushing the boundaries of technology - using data and intelligence in ways never before seen across the merchandising, planning, allocation, and fulfillment process. Review some of the major themes and shocking moments of 2017 with special guest Deborah Weinswig, Managing Director of Fung Global Retail & Technology, plus tips on how to succeed in 2018. The slides cover the following themes:
- A review of the major trends and key industry happenings in 2017
- Why retailers are afraid to tell customers that they know so much about them
- Ways in which optimizing inventories can be the key to serving your customers
- How to better understand customers and provide a better experience through advanced analytics
- Tips on how to succeed in 2018... and more
5. 5Deborah Weinswig Tel. 646.839.7017 deborahweinswig@fung1937.com
About the Fung Group
PRODUCTS SERVICES DISTRIBUTION RETAILING
Li & Fung Limited
Listed on the SEHK
Global Brands Group
Listed on the SEHK
Fung Retailing Limited
Privately Held Entity
Convenience Retail
Asia Limited
Listed on the SEHK
Trinity Limited
Listed on the SEHK
Branded Lifestyle Holdings Limited
LiFung Kids (Holdings) Limited
Toys “R” Us (Asia)
Suhyang Networks
UCCAL Fashion Group
Privately Held Entities
Fung Holdings (1937) Ltd.
A privately held entity and major shareholder of the Fung Group
KNOWLEDGE
FGRT
Fung Business
Intelligence
Fung Academy
6. 6Deborah Weinswig Tel. 646.839.7017 deborahweinswig@fung1937.com
• The knowledge bank for the Fung Group
• Focuses on emerging retail and technology trends
• Established in 2014
• Based in New York, with research teams in London,
Hong Kong, Israel and India
• Publishes thematic research and research with a global
scope on topics such as omnichannel retail, fashion and
retail trends, and disruptive technologies
• Compiles the FGRT Retail Intelligence Index
About FGRT
18. 18Deborah Weinswig Tel. 646.839.7017 deborahweinswig@fung1937.com
Aside from the announced deals, there has been much other M&A chatter:
• Nordstrom announced it is exploring a “going private” transaction (June 8, company press
release)
• American Eagle Outfitters is reported to be bidding for Abercrombie & Fitch with private
equity firm Cerberus Capital Management
(May 25, Reuters.com)
• Deckers Brands announced that it is reviewing strategic alternatives (April 25, company press
release)
• BJ's Wholesale Club put itself up for sale in April
(April 14, New York Post)
2. Surge in Retail M&A Activity
19. 19Deborah Weinswig Tel. 646.839.7017 deborahweinswig@fung1937.com
2. Surge in Retail M&A Activity
Notable Announced Retail M&A in the US, YTD
Date Company Target Value
Dec-13 Target Shipt $550 million
Dec-4 CVS Health Aetna $69 billion
Nov-21 Walmart Parcel Undisclosed
Nov-17 Williams-Sonoma Outward $112 million
Oct-4 Office Depot CompuCom Approp. $1 billion
Oct-3 Ace Hardware The Grommet Undisclosed
Sep-22 Albertsons Plated Undisclosed
Jul-17 Michael Kors Jimmy Choo $1.2 billion
Jun-17 Sycamore Partners Staples $6.9 billion
Jun-17 Amazon Whole Foods $13.7 billion
Jun-17 Walmart Bonobos $310 million
May-17 Coach Kate Spade $2.4 billion
Apr-17 Petsmart Chewy.com $3.35 billion
Mar-17 Walmart ModCloth Less than $75 million
Feb-17 Walmart Moose Jaw $50 million
Jan-17 Walmart Shoebuy $70 million
Source: Company reports
29. 29Deborah Weinswig Tel. 646.839.7017 deborahweinswig@fung1937.com
AI Means Personalization and Higher Conversion
Source: Alizila.com
Alibaba saw a surge in mobile engagement
during the first quarter of 2017 due to AI-
powered personalization.
Its shopping app reached 529 million
users in June, an increase of 22 million in
three months.
6.7 billion
Personalized shopping pages were
generated by merchants on Taobao
and Tmall during the 2016 11.11
Shopping Festival
20% higher
conversion rate
on personalized landing pages during
11.11 in 2016 compared to non-
personalized ones.
33. 33Deborah Weinswig Tel. 646.839.7017 deborahweinswig@fung1937.com
New Retail Is Powered by AI
Rolling Out O2O Services on
Mobile Devices and Social
Networks
Pure Plays Opening
Experiential Stores
Offering New Pickup Options
Such as Click-and-Collect
Using QR Codes In-Store to
Encourage Customers to Buy
Online; Driving Online Traffic to
Physical Stores
Enhancing Mobile Payment
Services In-Store
Forming Strategic Alliances
with Internet Companies to
Drive Synergies
New Retail, an initiative advocated by Alibaba, refers to the integration of online, offline,
logistics and data across a single value chain