From a presentation I recently made at the Shopper Marketing Summit, March 25, 2014 in Chicago.

1. The Digital Store:
Transforming the Shopping
Experience with Real-Time,
Relevant Offers and Content
Ken Fenyo
Former CEO at YOU Technology and
VP Loyalty & Digital at The Kroger Co.

2. • Key trends
• How digital is reshaping the shopping experience
• Keys to success
Today’s Discussion
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3. Source: Deloitte; US Census Bureau
$700 billion
in mobile-influenced retail sales by 2016
Digital is Transforming Shopping
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4. Source: Industry analysis
1 billion+
in 2013 digital coupon downloads
Digital is Transforming Shopping
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5. Source: Industry analysis
35%+
of downloads from mobile phones
Digital is Transforming Shopping
4

6. Source: Industry analysis
95%+
of downloads from retailer sites/apps
Digital is Transforming Shopping
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7. Source: Progressive Grocer; industry analysis
9 of 10
of the PG Super 50 now offering or
testing digital coupons
Digital is Transforming Shopping
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8. • Key trends
• How digital is reshaping the shopping experience
• Keys to success
Today’s Discussion
7

9. Delivering Digital Coupons
Kroger Digital Coupon Center
• Integrated multi-
channel communication
• 200+ aggregated
national and shopper
marketing coupons
• Frequent digital
merchandising events
• Mobile app top 2% of
iOS downloads
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10. • Digital coupon to support
in-store event
• Coupon with QR code
featured on front page of
circular and store tags
• Over 50% redemption rate
with ~20% of downloads
via scan of QR code
Enhancing Traditional In-Store Events
ShopRite Milano Cookie Event
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11. • Personalized deals/pricing
• Digital coupons and circular
items sorted by relevance
• Frequent “themed” emails
• 6 million registered users by
end 2013, ~50% of active
customer base
Personalizing Prices and Offers
Safeway Just For U
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12. Developing Next Gen CRM Programs
Target Cartwheel
• In-store digital coupons
• Social focus
• Single mobile barcode
to redeem all offers
• Large pool of % off
offers across the store
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13. Creating New Shopping Tools
Walmart Scan & Go
• Scan barcodes with mobile
phone to add to cart and
pay via self-checkout lane
• Digital coupon integration
• E-commerce ordering
directly from the app
• Digital receipts
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14. Engaging Shoppers in Store
• Early iBeacon test
• Welcome messages and
offers as walk the store
• Potential privacy concerns
ShopKick-Macy’s iBeacon Test
13

15. • Pay at in-store sandwich
counters, juice and coffee
bars, etc. and skip the main
checkout lines
• Testing Square Wallet for
mobile payment, offers,
menus, digital receipts
Introducing New Ways to Pay
Whole Foods/Square Partnership
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16. • Find and purchase items
across retailers
• Google employees pick
the items in each store
and deliver the next day
• No perishables
• Providing Google with
own database of retail
purchase and other data
Building an Omni-Channel Experience
Google Shopping Express
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17. • Key trends
• How digital is reshaping the shopping experience
• Keys to success
Today’s Discussion
16

18. • Build relationships vs. distribute coupons
• Personalize offers and content based on purchase
history, location, preferences, etc.
• Enhance the shopping experience
• Invest in omni-channel capabilities and partnerships
• Ensure transparency and shopper privacy
Keys to success
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