Euromonitor Retailing in The Us

RETAILING IN THE US
Euromonitor International
March 2017
RETAILING IN THE US Passport I
LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Retailing Continues To Register A Positive Performance in 2016 ............................................ 1
Pursuit of Omnichannel Proficiency Intensifies ......................................................................... 1
the Competition Continues Between Grocery and Non-grocery Retailers ................................ 1
Consolidation Continues in Retailing in the US ........................................................................ 1
Digital Technology, Innovation and Pricing To Drive Growth in Retailing ................................. 1
Key Trends and Developments .................................................................................................... 2
Economic Outlook..................................................................................................................... 2
Pursuit of Omnichannel Proficiency Intensifies in 2016 ............................................................ 3
Convenience Shapes Innovation in Retailing in the US ............................................................ 3
Operating Environment................................................................................................................. 4
Informal Retailing ...................................................................................................................... 4
Opening Hours.......................................................................................................................... 5
Summary 1 Standard Opening Hours by Channel Type 2016 ......................................... 6
Physical Retail Landscape........................................................................................................ 7
Cash and Carry......................................................................................................................... 8
Seasonality ............................................................................................................................... 8
Payments and Delivery ............................................................................................................. 9
Summary 2 Company and Business Model Overview 2016 .......................................... 10
Emerging Business Models .................................................................................................... 12
Market Data ................................................................................................................................ 13
Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2011-2016 ........... 13
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth
2011-2016 .................................................................................................. 13
Table 3 Sales in Store-based Retailing by Channel: Value 2011-2016 ................... 13
Table 4 Store-based Retailing Outlets by Channel: Units 2011-2016 ..................... 14
Table 5 Sales in Store-based Retailing by Channel: % Value Growth 2011-
2016 ........................................................................................................... 14
Table 6 Store-based Retailing Outlets by Channel: % Unit Growth 2011-2016 ...... 14
Table 7 Sales in Non-Store Retailing by Channel: Value 2011-2016 ...................... 15
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2011-2016 ..... 15
Table 9 Non-Grocery Specialists: Value Sales, Outlets and Selling Space
2011-2016 .................................................................................................. 15
Table 10 Sales in Non-Grocery Specialists by Channel: Value 2011-2016 ............... 15
Table 11 Non-Grocery Specialists Outlets by Channel: Units 2011-2016 ................. 16
Table 12 Sales in Non-Grocery Specialists by Channel: % Value Growth 2011-
2016 ........................................................................................................... 16
Table 13 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2011-
2016 ........................................................................................................... 17
Table 14 Retailing GBO Company Shares: % Value 2012-2016 .............................. 17
Table 15 Retailing GBN Brand Shares: % Value 2013-2016 .................................... 18
Table 16 Store-based Retailing GBO Company Shares: % Value 2012-2016 .......... 18
Table 17 Store-based Retailing GBN Brand Shares: % Value 2013-2016 ................ 19
Table 18 Store-based Retailing LBN Brand Shares: Outlets 2013-2016................... 19
Table 19 Non-Store Retailing GBO Company Shares: % Value 2012-2016 ............. 20
Table 20 Non-Store Retailing GBN Brand Shares: % Value 2013-2016 ................... 21
RETAILING IN THE US Passport II
Table 21 Non-Grocery Specialists GBO Company Shares: % Value 2012-2016 ...... 21

Table 22 Non-Grocery Specialists GBN Brand Shares: % Value 2013-2016 ............ 22
Table 23 Non-Grocery Specialists LBN Brand Shares: Outlets 2013-2016 .............. 23
Table 24 Non-Grocery Specialists LBN Brand Shares: Selling Space 2013-
2016 ........................................................................................................... 23
Table 25 Forecast Sales in Retailing by Store-based vs Non-Store: Value
2016-2021 .................................................................................................. 24
Table 26 Forecast Sales in Retailing by Store-based vs Non-Store: % Value
Growth 2016-2021 ..................................................................................... 24
Table 27 Forecast Sales in Store-based Retailing by Channel: Value 2016-
2021 ........................................................................................................... 24
Table 28 Forecast Store-based Retailing Outlets by Channel: Units 2016-2021 ...... 25
Table 29 Forecast Sales in Store-based Retailing by Channel: % Value Growth
2016-2021 .................................................................................................. 25
Table 30 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth
2016-2021 .................................................................................................. 26
Table 31 Forecast Sales in Non-Store Retailing by Channel: Value 2016-2021 ....... 26
Table 32 Forecast Sales in Non-Store Retailing by Channel: % Value Growth
2016-2021 .................................................................................................. 26
Table 33 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling
Space 2016-2021 ....................................................................................... 27
Table 34 Forecast Sales in Non-Grocery Specialists by Channel: Value 2016-
2021 ........................................................................................................... 27
Table 35 Forecast Non-Grocery Specialists Outlets by Channel: Units 2016-
2021 ........................................................................................................... 27
Table 36 Forecast Sales in Non-Grocery Specialists by Channel: % Value
Growth 2016-2021 ..................................................................................... 28
Table 37 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth
2016-2021 .................................................................................................. 28
Definitions................................................................................................................................... 28
Sources ...................................................................................................................................... 29
Summary 3 Research Sources ...................................................................................... 29
RETAILING IN THE US Passport 1
RETAILING IN THE US
EXECUTIVE SUMMARY
Retailing Continues To Register A Positive Performance in 2016

The unemployment rate remained low in 2016, helping consumers to feel confident about the
economy; in turn benefiting retailers. Retailers operating in the US continued to focus on offering
competitive prices through a variety of seamlessly integrated purchasing platforms. These
factors had a beneficial effect on the performance of retailing in the US in 2016.
Pursuit of Omnichannel Proficiency Intensifies

Alongside global retailing, the US retail landscape is evolving quickly, with the rise of
omnichannel retailing. Omnichannel retailing is a customer-centric, channel-agnostic approach
to retailing, through which retailers provide a seamless shopping experience across all of their
physical and digital channels. Shoppers increasingly value convenience when shopping, and
omnichannel capabilities allow them to seamlessly switch from one channel to another. By the
end of 2016, the vast majority of retailers operating in the US were struggling to be
omnichannel. The most common challenges that retailers face include tracking sales, inventory
planning, overcoming organisational barriers and legacy technology, last mile delivery, providing
secure methods of payment and appropriately adapting their physical stores. Retailers will
continue their quest to achieve omnichannel proficiency in the forecast period.
the Competition Continues Between Grocery and Non-grocery Retailers

Companies continue to focus on having a presence in various channels and expanding to
offer added convenience. Retailers from both grocery and non-grocery channels are adapting to
the demands of the modern and digital world to offer convenience, leading to channel blurring,
as well as advances in various online commerce options. For example, the availability of grocery
products through variety stores and drugstores increased. These retailers are focused on
attracting consumers into stores by becoming one-stop outlets where consumers can get most
of the products they need for their household. In a similar way, internet retailers such as
Amazon, Walmart and Peapod provided options for faster delivery and/or click-and-collect
services in 2016.
Consolidation Continues in Retailing in the US

In 2016, retailing in the US witnessed a trend towards further consolidation. For example, in
September 2016 Walmart completed the acquisition of internet retailer Jet.com. In the non-
grocery channel, Bed Bath & Beyond acquired online retailer One Kings Lane.
Drugstore/parapharmacy retailer Walgreens Boots Alliance is still in the process of acquiring
Rite Aid due to regulatory approval. If successful, the acquisition would unite the first and third
largest drugstore chains, and the combined company would control nearly half of sales in
drugstores/ parapharmacies in the US. This consolidation trend continued as companies sought
to expand not only into different retail channels, but also within their core business areas.
Digital Technology, Innovation and Pricing To Drive Growth in Retailing

Retailers operating in the US are likely to continue to face tough competition due to increased
demands from consumers in terms of both convenient fulfilment options and choice in terms of
payment and prices. Digital technology is expected to be one of the key drivers of growth,
because consumers are becoming increasingly dependent on their digital devices to make
purchases. Innovation around conversational commerce (Amazons Echo devices), and other
emerging commerce platforms, such as Virtual Reality (VR), Augmented Reality (AR), and
connected wearables and cars, will yield new opportunities for retailers. Furthermore, innovation
in terms of payment, store format and delivery are likely to continue to favour those retailers
which are best able to adapt.
KEY TRENDS AND DEVELOPMENTS
Economic Outlook
The US economy slowed in 2016. Real GDP growth was 1.5%, which was down from 2.6% in
2015. Unemployment fell below full employment levels, whilst energy prices remained low,
creating a favourable environment for consumption growth. An increase in consumer borrowing
also supported private consumption. Household debt continued to decline, whilst the real
median household income was still below the level recorded in 2008. Wages were rising, but
growth was still rather slow. Growth in wages could provide the most important boost to
consumer spending. Despite low unemployment and inflation, the majority of consumers
maintain a frugal mindset, considering products based on price, and shopping around for the
best deals. Another important economic indicator, the housing market, is improving, but many
consumers who were expected to buy homes and boost the economy chose not to, because of
student loan debt. Nearly half of Americans admit that student loan debt is a major obstacle to
buying a home. As a result, growth was achieved by those retailers able to offer competitive
prices. Discounters and internet retailers benefited from this trend, offering consumers a variety
of products at affordable prices with reasonable shipping costs.
The economy is expected to see annual growth of about 1.5% over the period 2017-2020.
The rate of employment has been steadily rising for several years. The workforce participation
rate is also increasing. Unemployment was 5.3% in 2015, and fell to 4.9% in 2016. Wages are
being pushed up as the pool of unemployed shrinks. However, the upwards trend is a leisurely
one.
As the US income inequality gap widens, polarisation has been seen across many retail
channels. Retailers have had to appeal to two segments of the population: those who enjoyed
the financial gains of the post-recession economic growth, and those who did not benefit,
despite dropping unemployment and slight overall wage growth. Despite differences in incomes,
US consumers as a whole are demanding quality products at competitive prices with convenient
shipping options. Because of the rise in internet purchasing, in-store purchases have declined,
and some major retailers have trimmed down their store numbers or decreased the size of
newer stores in order to remain profitable. In some areas of retailing, particularly grocery stores,
this is thought to be the result of many middle- and upper-middle-income consumers switching
from traditional supermarkets to discounter chains such as Aldi, and then preferring to stay with
the lower-priced option as their financial situations improved. High-income consumers continue
to support luxury retailers, whilst lower- and middle-income consumers are looking for luxury
purchases at budget prices; supporting the decline of department stores and the rise of off-price
retailers.
Outlook
The 2016 election resulted in the victory of Donald J Trump, as well as Republican majorities
in the Senate and House of Representatives. Trump is regarded as a business magnate and
reality TV star in the US, but he will be the first US president with no political experience.
Despite running on the Republican ticket, some of Trumps proposed policies clash with the
traditional conservative platform, and may not be approved by a conservative congress. This
has led to a high degree of uncertainty regarding the economic outlook for the US. Two policies
which are more likely to pass through congress and would have an impact on retailing are
potential import tariffs and business tax changes.
Trump vowed to discard the Trans-Pacific Partnership proposal, which would have benefited
retailers by facilitating imports from several manufacturing hub countries. He has also proposed
imposing significant import tariffs on China, a move that would hurt retailers through price
increases. Trump has proposed significantly reducing business taxes and closing business tax
loopholes which benefit certain industries more than others. Retailing is not an industry that has
access to many loopholes, so a decrease in business tax would likely benefit it as a whole. For
consumers, Trump is proposing cuts in income taxes, which will increase disposable income for
many Americans, which may also benefit retailing.
Pursuit of Omnichannel Proficiency Intensifies in 2016

Retailers operating in the US are experiencing active shopper demand for omnichannel
retailing. Omnichannel retailing is a customer-centric, channel-agnostic approach to retailing,
through which retailers provide a seamless shopping experience across all of their physical and
digital channels. Shoppers increasingly value convenience when shopping, and omnichannel
capabilities allow them to seamlessly switch from mobile to in-store and computers to mobile
devices as they move through the purchasing process. Current customer expectations are that
retailers and brands are accessible through all devices at their convenience, and offering this
shopping experience is therefore no longer optional for retailers to remain relevant.
Over the review period many retailers invested in brand-building and supporting sales through
omnichannel efforts. Retailers which initially operated exclusively or primarily as bricks-and-
mortar businesses are in the process of rightsizing, incorporating an online business and
adapting their physical stores appropriately. Meanwhile, internet pure play retailers are
selectively opening physical stores. Both types of retailers are trying to seamlessly integrate
their physical and digital assets, and are running into various challenges.
Outlook
Current challenges that retailers operating in the US face in achieving omnichannel
proficiency include changing the way they look at sales attribution, managing inventory,
overcoming organisational barriers, including legacy technology, solving the issue of last mile
delivery, offering a secure method of payment and appropriately evolving the role of their bricks-
and-mortar stores. Retailers will continue to innovate and work with outside logistics companies
to strengthen their omnichannel offerings.
Retailers operating in the US understand that they must continue to invest in various
platforms to achieve omnichannel proficiency. Key platforms on which retailers must be present
to achieve omnichannel proficiency include physical stores, web, mobile IoT and other emerging
platforms. Retailers must be aware of these platforms and continue to invest in them, as they
are the channels through which shoppers seek to access their brands. The ultimate aim is to
provide a seamless shopping experience at any time, anywhere, through any platform, and
therefore retailers will need to provide consistency through all channels.
Convenience Shapes Innovation in Retailing in the US

The ways in which retailers are delivering convenience is evolving, as demand for convenient
retail offerings continues in the US. Drivers of the demand for convenience include urbanisation,
growth in smaller households, the ageing population and the hyperconnectivity of consumers.
Convenience in retailing now extends beyond what was previously offered by traditional
convenience formats, such as convenience stores and forecourt retailers. Retailers in various
retail channels (such as drugstores/parapharmacies, variety/dollar stores and even
supermarkets and hypermarkets) are adapting to the demands of the modern and digital world
to offer convenience, leading to channel blurring, as well as advances in various online
commerce options.
In particular, online commerce and fulfilment (including delivery) are evolving to meet US
shoppers demand for convenience. Busy urban households and the older population both value
the convenience of delivery, and demand is likely to continue. Consequently, retailers across all
channels, including convenience stores, as well as supermarkets and hypermarkets, are
integrating e-commerce and m-commerce, and experimenting with various fulfilment methods to
offer convenience of delivery. Nevertheless, the cost of offering delivery services is high,
particularly for perishable grocery items and in areas with low population density, and shoppers
are unwilling to pay for the full cost of delivery. Consequently, innovation in terms of other
methods of fulfilment is on the rise in the US.
Outlook
In addition to new players entering the convenience space and innovation around the
fulfilment of online orders, other convenience offerings are emerging in the US. Examples
include replenishment with the touch of a button (Amazons Dash buttons), subscriptions for
goods online, and connected devices, including smart appliances, voice commerce devices and
connected cars (Amazon and Ford).
Demand for convenience in the US retailing landscape is expected to continue over the
forecast period, and new players in the convenience space will also continue to emerge. As
shoppers seek more convenience-based offerings, retailers will meet this demand by developing
methods to assist in frictionless shopping.
OPERATING ENVIRONMENT
Informal Retailing
There is limited reliable data regarding informal retailing in the US. The US Department of
Commerce estimates the channel to be worth approximately USD250 billion. In the 2015
fiscal year, US Customs and Border Protection seized 28,865 shipments of counterfeit goods
(up roughly 25% from 2014). These shipments had an estimated retail value of USD1.4 billion
(up 10% from 2014). The most popular goods in 2015 were apparel and accessories, with
watches, jewellery, handbags and wallets at the top of the list of categories with the highest
MSRP overall. 52% of the estimated value of counterfeit goods seized originated from
mainland China, down from 60% in 2014.
According to Havocscope LLC, a researcher in global illicit markets, counterfeiting and piracy
cost the US economy a market value of roughly USD225.0 billion annually. Although the
Havocscope market value includes items such as CDs, DVDs, batteries and fashion items, it
also includes illegal drugs and counterfeit monies. The US also ranks first amongst the 88
countries tracked.
Counterfeit goods, such as fake Ray-Ban sunglasses, Gucci handbags and apparel, are sold
anywhere, including on street corners, in stores, via mail order and online auctions (e.g.
eBay). The designer industry is working with federal and state law enforcement agencies to
stop the sale of counterfeit items. Anti-counterfeiting advocates argue that sales of illegal
items drive up prices for all consumers, and the counterfeits are of substandard quality.
However, consumers continue to purchase these items (whether conscious of their counterfeit
nature or not), as the quality of counterfeit goods has improved dramatically, and can be
indistinguishable to the uneducated eye. Since the recession, counterfeit products have
expanded beyond aspirational and luxury goods to everyday branded items. Fake versions of
Victoria's Secret underwear and other apparel and accessories can even be found on street
stalls and in informal marketplaces in low-income urban areas.
Piracy is an area that has been an issue with regard to informal retailing. Knowledgeable
consumers are able to download a wealth of digital media, including software, films, books,
television shows and music, illegally. Whilst the marketplace has come under increased
scrutiny by law enforcement, it is unclear whether it has any measurable effect on retailing.
Counterfeit or stolen goods are commonly sold on the internet. Marketplace websites such as
eBay, free online classified website Craigslist and even online retailer behemoth Amazon are
three internet sites through which consumers can sometimes unknowingly purchase illegal
goods. Many of these retailers have developed systems to detect and remove fraudulent
listings. Consumer reviews can also play a role in preventing increasing sales of counterfeit
goods. If a consumer unknowingly purchases a counterfeit product, but later discovers that
the item is not genuine, he/she can leave reviews online for potential buyers to alert them,
and for the host marketplace to take down the listing and block the seller. However, once
blocked, many sellers create new accounts to continue selling counterfeit items. Furthermore,
citing a surge in counterfeit items, in 2016 Amazon instituted new rules regarding the sale of
certain brands, requiring sellers to provide documentation from manufacturers or distributors
and pay non-refundable fees in order to remain authorised to sell those brands on the site.
Opening Hours
Restricted retail opening hours stem from so-called blue laws, which were enforced to limit
the sale of goods on Sundays during colonial times. Most state regulations, however, date
from the 1950s, when nearly two-thirds of states imposed restrictions on opening hours. Since
then, many have revoked their trading time regulations, although some local ordinances and
laws still exist. Laws that remain on the books are normally associated with outlets which sell
alcohol.
The extension of retail opening hours in the US can be linked to changing residential patterns,
as many Americans have chosen to live in the suburbs and away from city centres. As most
employers are located in urban areas, this continues to increase the number of workers who
commute, as well as the length of the commute. Retailers have responded with longer
evening opening hours, in addition to opening on both Saturdays and Sundays. Opening
stores on a Sunday remained protected for a long time as a result of pressure from religious
groups. However, this is changing, and more state legislatures are accepting Sunday
opening.
Operating hours remain the same across most retail channels in the US. Most retail
operations, from the smallest retail stores to the largest hypermarkets, are open seven days a
week. However, in 2015, major retailers such as Wal-Mart and Kroger announced plans to
limit the long hours of their 24-hour stores. By closing some of these stores for a few hours
each night, these retailers are seeking to make better use of their resources by having
employees spend the hours restocking shelves and preparing stores for peak shopping
periods.
There is not much variance across retail channels or geography in terms of opening hours. In
addition, many retailers have become inclined to stay open for full operating hours, or at least
partial operating hours, on national holidays, depending on their product offerings. As most
Americans have the day off work or school, retailers realise this is an important time to stay
open, as consumers have more free time and the ability to shop. Also, if they are cooking or
preparing a holiday meal, they may need last-minute ingredients and/or supplies, making
grocery retailers more likely to stay open.
Those Americans who support more restrictive hours believe this will encourage family ties,
eliminate favouritism for large businesses over small businesses, which typically cannot
compete on hours, and eliminate concerns for those who are religious. Those who support
less restrictive hours argue that this increases convenience for consumers, allows for more
efficient use of facilities and, overall, boosts employment and economic growth.
Over the last 10 years, many non-grocery retailers began opening their doors on
Thanksgiving, the holiday that precedes Black Friday, which is a renowned annual shopping
event in the US. However, there was a backlash to this trend in 2015 and 2016, with
numerous major retailers publicly announcing that they would be closed for Thanksgiving
Day, mainly to boost morale by allowing employees to enjoy the holiday. In 2016, these
retailers included Nordstrom, Dillards, Staples, Sams Club, Costco, IKEA, Office Depot,
HHGregg, DSW Shoe Warehouse, Home Depot and others. Overall, the number of
Thanksgiving Day in-store shoppers was down from previous years, and there is growing
evidence that staying open on the holiday may not offer a sufficiently strong financial
incentive, especially when most major retailers are able to offer the same sales to online
shoppers.
For many retailers, store hours as traditionally defined may become less relevant in the
future, due to the rise of e-commerce. Key retailers, including Amazon and Wal-Mart, are
constantly looking for ways to improve their delivery service, emphasising the any time,
anywhere, any device concept. As more consumers shop online for all types of goods
(including groceries), the emphasis on the length of operating hours may weaken.
Summary 1 Standard Opening Hours by Channel Type 2016

Channel 24-hour Monday- Friday Saturday Sunday
opening? Thursday
Supermarket Yes 06.00- 06.00- 07.00- 07.00-
s 24.00hrs 24.00hrs 24.00hrs 24.00hrs
Discounters No 08.00- 08.00- 08.00- 08.00-
21.00hrs 21.00hrs 21.00hrs 19.00hrs
Hypermarket Yes 06.00- 06.00- 06.00- 06.00-
s 24.00hrs 24.00hrs 24.00hrs 24.00hrs
Convenience Yes 05.00- 05.00- 05.00- 05.00-
stores 23.00hrs 23.00hrs 23.00hrs 23.00hrs
Forecourt Yes 05.00- 05.00- 05.00- 05.00-
retailers 23.00hrs 23.00hrs 23.00hrs 23.00hrs
Food/drink/to No 07.00- 07.00- 07.00- 09.00-
bacco 22.00hrs 22.00hrs 22.00hrs 22.00hrs
specialist
retailers
Independent No 07.00- 07.00- 07.00- 09.00-
small grocers 20.00hrs 20.00hrs 18.00hrs 17.00hrs
Apparel and No 10.00- 10.00- 10.00- 10.00-
footwear 21.00hrs 21.00hrs 21.00hrs 18.00hrs
specialist
retailers
Electronics No 10.00- 10.00- 10.00- 10.00-
and 21.00hrs 21.00hrs 21.00hrs 21.00hrs

appliance
specialist
retailers
Beauty No 11.00- 11.00- 11.00- 11.00-
specialist 21.00hrs 21.00hrs 21.00hrs 20.00hrs
retailers
Chemists/ph Yes 07.00- 07.00- 07.00- 07.00-
armacies 23.00hrs 23.00hrs 23.00hrs 23.00hrs
Optical No 09.00- 09.00- 09.00- 10.00-
goods stores 21.00hrs 21.00hrs 21.00hrs 20.00hrs
Drugstores/ Yes 07.00- 07.00- 07.00- 07.00-
parapharmac 23.00hrs 23.00hrs 23.00hrs 23.00hrs
ies
Other No 10.00- 10.00- 10.00- 10.00-
healthcare 20.00hrs 20.00hrs 20.00hrs 19.00hrs
specialist
retailers
Home No 06.00- 06.00- 07.00- 06.00-
improvement 22.00hrs 22.00hrs 22.00hrs 20.00hrs
and
gardening
stores
Furniture and No 09.00- 09.00- 09.00- 09.00-
homewares 21.00hrs 21.00hrs 21.00hrs 20.00hrs
stores
Physical Retail Landscape

With footfall at shopping centres experiencing year-on-year declines, lifestyle centres have
become popular places for retailers. Lifestyle centres are typically open-air environments
which include landscaping, convenient parking close to stores and a warm, inviting
atmosphere for individuals and families to spend their free time. Lifestyle centres have proved
especially popular amongst female consumers. However, with sales in non-grocery store-
based retailing falling, especially for apparel and footwear, lifestyle centres have suffered.
Lifestyle centres are also attractive locations for restaurants, but US consumers are opting for
cheaper fare, or are choosing to eat at home. Developers are responding by changing the
tenant mix of lifestyle centres to include larger non-traditional operators, such as H&M and
Bed Bath & Beyond. Developers are seeking a mix of tenants which contribute to the overall
experience, including health centres, massage therapists, doctors and dentists, as well as
dining and entertainment providers.
The retail landscape is changing drastically, due to a shift in consumers shopping habits.
Shopping centres, especially fully enclosed malls, were once thriving, but saw declining foot
traffic and sales in recent years. Many struggling properties have been reduced to largely
vacant areas. Consumers have begun reducing trips to these centres in favour of big-box
stores, such as Walmart and Target, for one-stop shopping, or lifestyle centres, for a higher-
end experience. Consumers are also increasingly doing a higher percentage of their shopping
online, reducing the need to visit shopping centres. They are able to access an even wider
number of stores from their computers, tablets and mobile devices than they would at a single
shopping centre location.
One notable trend in the US has been the rise of pure play online retailers opening physical
locations. Examples include Amazon, which started opening device-focused pop-up stores in
2013. It now has 21 pop-ups in shopping centres across the US, and has plans to introduce
dozens more in the next year. Amazon also announced plans to open small format bricks-
and-mortar grocery stores in 2017, some specifically designed for drive-through pick-up of
items ordered online. Other examples include Bonobos, The Tie Bar and Warby Parker. Such
retailers maintain smaller physical stores, and thus inventory, emphasising the experience,
with some enabling easy access to online purchases in these stores.
Luxury retailers are typically located in shopping centres or lifestyle centres, as well as on
high streets in major cities. Discount retailers are usually located in suburban and rural
locations, on the outskirts of major cities. However, this is changing somewhat, as operators
are now courting discounters to become tenants within their shopping centres.
Cash and Carry

The cash and carry channel in the US is negligible, and consists of restaurant depots and
other companies which operate on a business-to-business basis. In order to shop in these
locations, it is necessary to show proof that one is buying on behalf of a business or non-profit
organisation.
The US has a well-developed chained warehouse clubs channel, which is similar to cash and
carry in other markets. These warehouse clubs are set up in a warehouse style, and sell bulk
quantities of items at discounted prices. These retailers are able to offer low prices because of
the no-frills environment, large quantities and high turnover.
Seasonality
Christmas
Date: 25 December.
Shopping season: November-December.
Primary products bought: Fresh and packaged food for family meals, Christmas-themed
apparel and homewares, Christmas trees, electronics and individual gifts for all ages (with an
emphasis on toys and games for children).
Retailer strategy: The run-up to the Christmas holiday is punctuated by a large number of
sales, including Black Friday, the unofficial start of the shopping season, when a number of
retailers hold their largest store sales of the year to increase footfall. Popular store sales on
Black Friday include doorbuster deals, which offer a handful of popular items at deeply
discounted prices, generally sold for a limited period of time in the earlier part of the day to
bring in customers. This is followed by Cyber Monday, during which retailers focus their sales
online. The frequent use of sales for longer periods of time, both in-store and online, became
more widespread over the review period. Consumers of all ages are targeted; however,
children are often a focus, as the recipients of the most gifts.
Back to school
Shopping season: Mid-July to mid-September.
Primary products bought: School supplies, and personal accessories and apparel for children
and young adults. Consumer electronic devices are increasingly purchased, thanks to
decreasing prices and the use of technology in education.
Retailer strategy: A number of advertisements are aired towards the end of the summer, and
steep discounts on a few key items are made to drive traffic and persuade consumers to buy
products beyond school supplies whilst in store. Sometimes centred around the Labor Day
holiday (the first Monday in September), thanks to its proximity to school start dates and the
day off from work and school that many receive thanks to its status as a national holiday and
the unofficial end of summer.
Christmas in July
Shopping season: July
Primary products bought: Consumer electronics, individual gifts for all ages, household
products, housewares, home appliances, etc.
Retailer strategy: Many retailers offer semi-annual sales. In 2016, several retail giants, such
as Amazon (calling the event Prime Day), Wal-Mart and Target joined in, with consumers of
all ages being targeted.
Mothers Day
Shopping Season: May
Primary products bought: Flowers, jewellery, confectionery, womens apparel.
Retailer strategy: Retailers offer a variety of sales, issuing advertisements for discounts
targeting a broad range of customers shopping for the common purpose of celebrating their
mothers. Many offer deals on special combinations of products, free shipping and gift
wrapping, along with ideas for last-minute gifts, whilst some host in-store events.
Payments and Delivery

All primary methods of payment (debit and credit card, cheque and paper) are actively used in
the US. Card operators in the US have been rolling out EMV cards to consumers across the
nation at a greater rate than ever before, particularly due to the fact that personal information
breaches at major retailers have affected millions, and have alerted the country at large. Most
operators agreed to the same timeline, requesting that acquirer processors meet the
acceptance requirements by April 2013, and that merchants do so by October 2015. Although
consumer EMV card adoption rates are relatively high, with both Visa and MasterCard
estimating that at least 75% of their cards would be chip-enabled by the end of 2016, retailers
have been slower to adopt chip-enabled POS units. EMV cards offer greater security against
counterfeit card fraud. Despite their ability to reduce fraud, the biggest hurdle to adoption has
always been getting the infrastructure in place, but with liability laws changing and all major
operators backing these changes, the rest of the payments system has no choice but to
comply a process that will be a boon to payment infrastructure, card security and mobile
payments across the country. Whilst this is more of a concern for debit cards, due to their
poorer liability laws, it is nonetheless important for credit cards, which will likely be included in
the infrastructure reform.
The majority of retailers agree that payment is an integral part of the retail experience, and will
have to become seamlessly integrated into the overall shopping experience. A payment
method that is anticipated to play a major role is mobile proximity payment. As of 2016,
however, mobile payments had not taken off as expected, with potential users reluctant to
make the switch. Thus far, only a few retailers have made a real effort to encourage the
adoption of mobile payments, generally through the creation of their own mobile payment
apps. Notable examples include Walmart Pay, introduced in December 2015, and Kohls Pay,
introduced in late 2016, both of which are poised for success.
Amazon announced in late 2016 that it would soon open its first AmazonGo store to the
public, a payment-free small format grocery store. Patrons are able to enter the store by
checking-in through the stores app, and later walk out with their items without ever having
visited a cash register. If this concept is successful, it could dramatically change the payment
environment in retailing.
Numerous grocery store chains are now offering their own delivery services to compete with
Instacart, Postmates, and other third party delivery services. Meijer, Albertsons and Safeway
were amongst the major supermarkets that introduced new delivery services in 2016, whilst
third party delivery services, including Postmates, Instacart, Google Express and SideCar, are
also trying to offer shorter delivery times.
Shipping infrastructure in the US is relatively robust, with rail, truck and plane options that
work well, despite the size of the nation and general underinvestment in infrastructure. There
are numerous shipping companies, such as Federal Express and UPS, as well as the United
States Post Office. In some cases, retailers use third party logistics providers, which are
responsible for part or all of the supply chain for delivery.
The ways in which customers have products delivered may change over the forecast period.
Retail giants are experimenting with alternative options to improve delivery. Amazon in
particular has set the gold standard for shipping, with two-day shipping as part of its Prime
membership. The online retailer continues to raise the bar on expedited shipping, offering 1-2
hour shipping with Prime Now from 2015. The service is only available in selected cities for
now, but the company is working to expand into more areas in the near future. Furthermore,
Amazon recently introduced Amazon Air, piloted in the UK, which uses drones as an
alternative delivery method.
Offering successful delivery services has proven to be a difficult task, as can be inferred from
several noteworthy examples of failed attempts. Uber, Lyft and eBay have all made
unsuccessful attempts to offer delivery services (although Uber is making another attempt). In
the summer of 2014, Uber started experimenting with an on-demand delivery service called
UberEssentials in selected regions of the US. However, by January 2015 the company
announced it was cancelling the trial. Uber offered a limited selection of products, and prices
were likely too high for delivery. It promptly replaced this model by introducing UberRush in
selected cities in late 2015. Time will tell if this version will have more success than its
predecessor.
Lyft, Ubers prime competitor, also briefly experimented with local delivery on a small scale,
but ultimately did not go through with it. As of August 2015, the company had no plans to
pursue local delivery, and instead focused exclusively on its core offering of on-demand rides.
eBay also shut down its same-day delivery service, eBay Now, in the summer of 2015.
According to the company, eBay Now was planned to be a pilot programme, and based on
the results from the trial period the company will discontinue the service and seek others
which will add value for its customers. All three of these companies are strong players in their
relative industries, and have tried and either struggled to succeed, or failed in the delivery
service space. There are significant logistical challenges to overcome, and the race to see
which player ultimately gets it right is still ongoing.
Summary 2 Company and Business Model Overview 2016

Company Business model
Postmates An on-demand logistics company which
operates a network of contractors to deliver a
variety of goods from participating retailers
(including restaurants) for a delivery fee.
Utilises mobile devices to receive orders and
dispatch delivery drivers.
Two pricing models: 1) One-off delivery: fees

start with a fixed cost of USD2.99, or USD3.99
for Postmates Plus partners, and are
determined by the delivery distance, in
addition to a 9% service fee on the delivered
product(s). 2) Subscription service: called
Postmates Plus Unlimited, it costs USD9.99 a
month for unlimited deliveries, with a minimum
order amount of USD25.
Pricing varies during peak times, when Blitz
Pricing is in effect.
Operates in 90 US cities.
Instacart An online delivery service that specialises in
groceries.
Partnered with over 100 national and local
grocery retailers, and operates a network of
contractors and part-time employees to deliver
in selected regions of the US.
Charges an annual fee of USD149 or a
minimum of USD5.99 per order over USD35
delivered within two hours and USD7.99 for
orders delivered within one hour. Peak pricing
will be in effect during times of high demand.
Currently present in 29 US metropolitan areas
in 20 states.
Google Express An online delivery service for both grocery and
non-grocery products in selected regions of
the US.
Two pricing models: 1) Pay a minimum of
USD4.99 per order with various fees
depending on the order, and 2) Express
membership at USD10/month or USD95/year
and be eligible for free delivery for orders over
USD15. Purchasing membership also qualifies
users for other benefits, such as first pick on
delivery windows and cheaper alcohol orders.
Offers a three-month free trial for new
customers.
In September 2015, Google made an
announcement that Google Express will
include the delivery of fresh produce. The
company has partnered with retailers such as
Whole Foods and Costco, and is anticipated to
compete directly with other online grocery
delivery services, such as Instacart and Fresh
Direct.
Uber Uber, which initially started as an on-demand
ride service company, is working with Wal-
Mart to pilot grocery delivery services.
The service will be limited to New York City
and San Francisco, at least initially.
Amazon Fresh Amazon Fresh is a grocery delivery service
available only to Prime members. It lowered its
membership fee in 2016 from USD299 per

year to USD14.99 per month, making delivery
services more competitive and attractive to
consumers. Orders under USD40 incur a
USD9.99 delivery fee.
Members can receive same-day delivery.
They must order by 10.00hrs to receive their
order by 18.00hrs. They can opt for a one-
hour window for in-person delivery, or a three-
hour window for items to be delivered to their
doorstep in temperature-controlled bags.
Offers a 30-day free trial.
Shipt Grocery and household essentials delivery
service out of Birmingham, Alabama, launched
in 2014. Now available in more than 30 cities,
with a geographic concentration in the
southeastern US and Texas. In 2016 the
company announced it would be offering a
delivery service from Texas grocer H-E-B.
Available through subscription only; this costs
USD14 per month or USD99 per year for
minimum orders of USD35. Both options offer
a free two-week trial. Those who sign up for
annual subscription receive USD15 in free
groceries.
Customers can purchase groceries through
the Shipt app only.
Source: Euromonitor International from company reports, company research, trade press, trade sources
Emerging Business Models

Omnichannel retailing: The any time, anyplace, any device mentality is becoming
increasingly crucial for retailers across various industries. Multiple retailers which in the past
exclusively sold their products online are also now opening physical stores. Examples include
Amazon, Warby Parker and Caspers. This trend indicates that physical stores are still
important in developing relationships with customers, but that having a presence on mobile
devices via social media and a well-developed app with a seamless customer experience will
be key to future success.
Augmented reality in retailing: 2016 saw the rise of Pokemon Go, a location-based
augmented reality app that led many Americans to interact with various monsters appearing
in the real world via their smartphone cameras and GPS systems. Although the popularity of
this game was short-lived, augmented reality and virtual reality are estimated to be worth
USD150 billion by 2020, and many retailers are harnessing this concept in their stores. In
2016, Sephoras flagship store in Chicago started using AR to allow patrons to try on various
make-up styles via the use of an app with make-up filters. Home Depot and Lowes also
added AR technology to their apps in 2016, allowing consumers to use their smartphone
cameras to see products such as new flooring in their homes before starting a renovation
project. Augmented reality offers significant potential value to retailers, and it is likely that
more of them will introduce new ways for patrons to use it going forward.
In-store app rewards: Some retailers are now offering additional rewards to customers who
use their apps in-store. One example of this is Target, which offers an app called Cartwheel,
which gives shoppers access to additional deals by scanning products with their mobile
phones. In addition, some retailers are participating in discount apps such as Shopkick, which
give customers an added incentive to enter their stores by offering them points for walk-ins,
product scans and purchases. Consumers can use their points to earn gift cards for major
retailers.
Online retailers using a dynamic pricing model: With the rise of e-commerce, the competition
is also on the rise. The newest, most highly-anticipated e-commerce player is Jet.com, which
was acquired by Wal-Mart in 2016. Jet.com promises to deliver cheap prices through the use
of a dynamic pricing model, offering consumers various options to save money at the cost of
convenience and immediacy. Examples include paying with a debit card instead of a credit
card, ordering multiple items from the same vendor and waiving the right to return products.
MARKET DATA
Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2011-2016
USD bn
2011 2012 2013 2014 2015 2016
Store-based Retailing 2,327.0 2,385.6 2,431.1 2,473.1 2,508.6 2,547.5

Non-Store Retailing 289.1 308.5 333.4 360.7 396.2 431.6
Retailing 2,616.1 2,694.1 2,764.5 2,833.8 2,904.8 2,979.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2011-2016
% current value growth, retail value rsp excl sales tax
2015/16 2011-16 CAGR 2011/16 Total
Store-based Retailing 1.6 1.8 9.5

Non-Store Retailing 8.9 8.3 49.3
Retailing 2.6 2.6 13.9
Table 3 Sales in Store-based Retailing by Channel: Value 2011-2016
USD bn
2011 2012 2013 2014 2015 2016
Grocery Retailers 937.5 956.7 971.5 989.1 1,000.2 1,017.2

Non-Grocery Specialists 1,023.5 1,055.7 1,087.4 1,110.2 1,130.5 1,149.4
Mixed Retailers 366.0 373.3 372.2 373.9 377.8 381.0
Luxury Retailing 15.3 16.2 16.5 16.5 16.3 16.6
Off-price Retailing 33.9 37.4 39.7 42.3 45.1 48.1
Note 1: Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.
Note 2: Off-price retailing not included in store-based retailing total to avoid double counting as off-price retailing
is a duplicate category already accounted for within apparel and footwear specialists and department
stores.
Table 4 Store-based Retailing Outlets by Channel: Units 2011-2016
outlet
2011 2012 2013 2014 2015 2016
Grocery Retailers 291,412.0 291,810.0 293,389.0 294,203.0 293,045.0 293,682.0

Mixed Retailers 39,764.0 41,091.0 42,417.0 43,663.0 44,753.0 45,773.0
Luxury Retailing 1,429.0 1,531.0 1,572.0 1,537.0 1,515.0 1,552.0
Off-price Retailing 7,767.0 7,901.0 8,076.0 8,352.0 8,586.0 8,767.0
stores.
Table 5 Sales in Store-based Retailing by Channel: % Value Growth 2011-2016
2015/16 2011-16 CAGR 2011/16 Total
Grocery Retailers 1.7 1.6 8.5

Non-Grocery Specialists 1.7 2.3 12.3
Mixed Retailers 0.8 0.8 4.1
Luxury Retailing 1.9 1.6 8.0
Off-price Retailing 6.6 7.2 41.7
stores.
Table 6 Store-based Retailing Outlets by Channel: % Unit Growth 2011-2016
% unit growth
2015/16 2011-16 CAGR 2011/16 Total

Non-Grocery Specialists -0.8 -0.7 -3.5
Luxury Retailing 2.4 1.7 8.6
Off-price Retailing 2.1 2.5 12.9
Store-based Retailing -0.3 -0.3 -1.3
stores.
Table 7 Sales in Non-Store Retailing by Channel: Value 2011-2016
USD bn
2011 2012 2013 2014 2015 2016
Direct Selling 23.1 24.2 24.6 24.9 25.4 25.7

Homeshopping 102.2 97.1 91.3 90.0 88.8 88.4
Internet Retailing 158.4 181.7 212.0 240.4 276.6 312.1
Vending 5.4 5.5 5.5 5.4 5.5 5.5
Internet Pure Play 87.2 104.2 125.1 143.4 169.0 194.1
Retailers
Mobile Internet Retailing - 20.2 31.0 53.3 76.5 96.3
Note 1: Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.
Note 2: Mobile internet retailing and internet pure play retailers not included in non-store retailing total to avoid
double counting as these categories are already accounted for within internet retailing.
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2011-2016
2015/16 2011-16 CAGR 2011/16 Total
Direct Selling 1.3 2.2 11.5

Homeshopping -0.5 -2.9 -13.5
Internet Retailing 12.8 14.5 97.0
Vending 0.3 0.2 0.9
Internet Pure Play Retailers 14.8 17.4 122.6
Mobile Internet Retailing 26.0 - -
Table 9 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2011-2016
2011 2012 2013 2014 2015 2016
Value sales USD bn 1,023.5 1,055.7 1,087.4 1,110.2 1,130.5 1,149.4

Outlets '000 549.4 543.1 541.0 536.9 534.1 529.9
Selling Space mn sq m 476.0 467.7 459.8 451.7 450.5 448.2
Table 10 Sales in Non-Grocery Specialists by Channel: Value 2011-2016
USD bn
2011 2012 2013 2014 2015 2016
Apparel and Footwear 169.6 174.6 178.9 184.4 190.3 195.5

Specialist Retailers
Electronics and 98.7 102.6 103.7 104.0 104.5 103.9
Appliance Specialist
Retailers
Health and Beauty 266.0 271.7 283.5 292.2 304.3 316.7
Home and Garden 303.9 320.4 333.5 343.7 346.8 350.2
Leisure and Personal 150.2 150.1 150.7 150.2 149.8 148.9
Goods Specialist
Retailers
Other Non-Grocery 35.1 36.2 37.0 35.6 34.9 34.2
Specialists
Table 11 Non-Grocery Specialists Outlets by Channel: Units 2011-2016
outlet
2011 2012 2013 2014 2015 2016
Apparel and Footwear 115,972.0 116,438.0 118,070.0 118,120.0 118,561.0 118,920.0

Electronics and 49,068.0 49,684.0 50,231.0 48,819.0 48,195.0 46,766.0
Retailers
Health and Beauty 92,434.0 92,730.0 93,897.0 95,133.0 97,189.0 99,036.0
Home and Garden 134,011.0 129,959.0 127,333.0 124,757.0 121,909.0 118,813.0
Leisure and Personal 122,632.0 118,859.0 117,380.0 116,499.0 115,374.0 114,178.0
Goods Specialist
Retailers
Other Non-Grocery 35,260.0 35,472.0 34,078.0 33,567.0 32,862.0 32,221.0
Specialists
Table 12 Sales in Non-Grocery Specialists by Channel: % Value Growth 2011-2016
2015/16 2011-16 CAGR 2011/16 Total
Apparel and Footwear Specialist 2.8 2.9 15.3

Retailers
Electronics and Appliance Specialist -0.6 1.0 5.2
Retailers
Health and Beauty Specialist Retailers 4.1 3.6 19.1
Home and Garden Specialist Retailers 1.0 2.9 15.2
Leisure and Personal Goods Specialist -0.6 -0.2 -0.9

Retailers
Other Non-Grocery Specialists -1.9 -0.5 -2.7
Table 13 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2011-2016
% unit growth
2015/16 2011-16 CAGR 2011/16 Total

Retailers
Electronics and Appliance Specialist -3.0 -1.0 -4.7
Retailers
Home and Garden Specialist Retailers -2.5 -2.4 -11.3
Retailers
Table 14 Retailing GBO Company Shares: % Value 2012-2016
% retail value rsp excl sales tax

Company 2012 2013 2014 2015 2016
Wal-Mart Stores Inc 11.8 11.8 12.0 11.9 11.8

CVS Health Corp - - 3.5 3.8 4.1
Kroger Co 2.7 2.8 3.3 3.4 3.5
Amazon.com Inc 1.7 2.1 2.6 3.1 3.5
Walgreens Boots - - 2.8 2.9 3.0
Alliance Inc
Target Corp 2.6 2.6 2.6 2.6 2.5
Costco Wholesale Corp 1.8 1.9 2.0 2.1 2.2
Home Depot Inc, The 1.6 1.7 1.8 1.9 2.0
Albertson's Inc 0.1 0.9 0.8 1.8 1.8
Ahold Delhaize - - - - 1.4
Lowe's Cos Inc 1.2 1.1 1.2 1.2 1.3
Best Buy Co Inc 1.3 1.2 1.2 1.2 1.2
Publix Super Markets Inc 1.0 1.0 1.1 1.1 1.1
Apple Inc 0.7 0.8 0.9 0.9 1.0
Rite Aid Corp 1.0 0.9 0.9 0.9 0.9
Sears Holdings Corp 1.3 1.3 1.2 1.0 0.9
TJX Cos Inc, The 0.7 0.8 0.8 0.8 0.9
HE Butt Grocery Co 0.7 0.7 0.7 0.8 0.8
Macys Inc 1.0 1.0 1.0 0.9 0.8
eBay Inc 0.6 0.8 0.8 0.8 0.8
Royal Ahold NV 0.9 0.9 0.8 0.8 -
Safeway Inc 1.2 1.1 1.1 - -
CVS Caremark Corp 3.2 3.3 - - -
Walgreen Co 2.6 2.7 - - -
Others 60.1 58.6 57.0 56.3 54.6
Total 100.0 100.0 100.0 100.0 100.0
Table 15 Retailing GBN Brand Shares: % Value 2013-2016

Brand Company (GBO) 2013 2014 2015 2016
Walmart Supercenter Wal-Mart Stores Inc 8.9 8.9 8.7 8.7

Walgreens Walgreens Boots - 2.6 2.7 2.8
Alliance Inc
Kroger Kroger Co 2.4 2.8 2.7 2.8
CVS CVS Health Corp - 2.4 2.4 2.6
Costco Costco Wholesale Corp 1.9 2.0 2.1 2.2
3rd Party Merchants Amazon.com Inc 1.2 1.6 1.9 2.1
Target Target Corp 2.1 2.1 2.1 2.1
Home Depot Home Depot Inc, The 1.7 1.8 1.9 2.0
Albertson's Albertson's Inc 0.8 0.8 1.8 1.8
CVS ProCare Mail CVS Health Corp - 1.1 1.3 1.5
Service
Sam's Club Wal-Mart Stores Inc 1.5 1.4 1.4 1.4
Lowe's Lowe's Cos Inc 1.1 1.2 1.2 1.3
Amazon Amazon.com Inc 0.8 0.9 1.1 1.2
Best Buy Best Buy Co Inc 1.2 1.2 1.1 1.1
Publix Publix Super Markets Inc 1.0 1.1 1.1 1.1
Rite Aid Rite Aid Corp 0.9 0.9 0.9 0.9
Walmart Wal-Mart Stores Inc 1.0 1.0 0.9 0.9
H-E-B HE Butt Grocery Co 0.7 0.7 0.8 0.8
3rd Party Merchants eBay Inc 0.8 0.8 0.8 0.8
Dollar General Dollar General Corp 0.6 0.7 0.7 0.7
Safeway Safeway Inc 1.1 1.1 - -
Walgreens Walgreen Co 2.6 - - -
CVS CVS Caremark Corp 2.4 - - -
CVS ProCare Mail CVS Caremark Corp 0.9 - - -
Service
Others 64.3 63.1 62.3 61.3
Total 100.0 100.0 100.0 100.0
Table 16 Store-based Retailing GBO Company Shares: % Value 2012-2016

Company 2012 2013 2014 2015 2016

Kroger Co 3.1 3.1 3.8 3.9 4.1
Alliance Inc
Target Corp 2.8 2.8 2.8 2.8 2.8
Albertson's Inc 0.1 1.0 0.9 2.1 2.1
Ahold Delhaize - - - - 1.6
Lowe's Cos Inc 1.3 1.3 1.3 1.4 1.5
Publix Super Markets Inc 1.2 1.2 1.2 1.3 1.3
Best Buy Co Inc 1.3 1.2 1.2 1.2 1.2

Rite Aid Corp 1.1 1.1 1.1 1.1 1.1
TJX Cos Inc, The 0.8 0.9 0.9 0.9 1.0
HE Butt Grocery Co 0.7 0.8 0.8 0.9 1.0
Dollar General Corp 0.7 0.7 0.8 0.8 0.9
Macys Inc 1.0 1.0 1.0 0.8 0.7
Meijer Inc 0.6 0.6 0.6 0.7 0.7
Whole Foods Market Inc 0.5 0.5 0.6 0.6 0.6
Royal Ahold NV 1.0 1.0 0.9 0.9 -
Delhaize Group SA 0.8 0.7 0.7 0.7 -
Safeway Inc 1.3 1.3 1.3 - -
Others 58.0 57.0 56.0 55.6 54.7
Total 100.0 100.0 100.0 100.0 100.0
Table 17 Store-based Retailing GBN Brand Shares: % Value 2013-2016

Walmart Supercenter Wal-Mart Stores Inc 10.1 10.2 10.1 10.1

Alliance Inc
Kroger Kroger Co 2.8 3.2 3.2 3.3
Albertson's Albertson's Inc 1.0 0.9 2.1 2.1
Sam's Club Wal-Mart Stores Inc 1.7 1.7 1.6 1.6
Publix Publix Super Markets Inc 1.2 1.2 1.3 1.3
H-E-B HE Butt Grocery Co 0.8 0.8 0.9 1.0
Dollar General Dollar General Corp 0.7 0.8 0.8 0.9
Meijer Meijer Inc 0.6 0.6 0.7 0.7
Macy's Macys Inc 0.9 0.9 0.7 0.7
Whole Foods Whole Foods Market Inc 0.5 0.6 0.6 0.6
Kohl's Kohl's Corp 0.7 0.7 0.7 0.6
Safeway Safeway Inc 1.3 1.3 - -
Others 61.6 60.7 60.3 59.5
Total 100.0 100.0 100.0 100.0
Table 18 Store-based Retailing LBN Brand Shares: Outlets 2013-2016
sites/outlets
Brand (GBO) Company (NBO) 2013 2014 2015 2016
Dollar General Dollar General Corp 11,132 11,789 12,483 13,383

CVS CVS Health Corp - 7,755 9,558 9,550
7-Eleven (Seven & I 7-Eleven Inc 7,865 7,863 8,058 8,167
Holdings Co Ltd)
Walgreens Walgreen Co - 8,086 7,965 7,955
(Walgreens Boots
Alliance Inc)
Family Dollar Dollar Tree Inc - - 7,897 7,948
Circle K Circle K Stores Inc 4,342 4,455 4,568 5,739
(Alimentation
Couche-Tard Inc)
Shell Shop (Royal Shell Oil Co 4,950 5,009 4,849 4,897
Dutch Shell Plc)
Rite Aid Rite Aid Corp 4,595 4,570 4,561 4,560
GNC (General GNC Holdings Inc 4,149 4,327 4,413 4,497
Nutrition Centers
Inc)
True Value True Value Hardware Corp 4,494 4,439 4,409 4,403
Ace Cooperative Ace Hardware Corp 4,171 4,251 4,311 4,353
Stores
GameStop GameStop Corp 4,201 4,099 3,976 3,962
Sherwin Williams Sherwin-Williams Co, The 3,654 3,738 3,812 3,858
Walmart Supercenter Wal-Mart Stores Inc 3,288 3,409 3,461 3,525
Payless ShoeSource Payless ShoeSource Inc 3,341 3,349 3,334 3,340
(Payless Holdings)
Sally Beauty Supply Sally Beauty Co Inc 2,720 2,709 2,785 2,855
Dollar Tree Dollar Tree Inc 4,812 5,157 5,729 2,824
Speedway Marathon Oil Co 1,478 2,733 2,770 2,802
Amoco FoodMart BP America Inc 3,060 3,150 2,552 2,525
(British Petroleum
Co Plc, The)
Kroger Kroger Co 2,297 2,498 2,403 2,419
RadioShack RadioShack Corp 5,136 4,986 - -
Family Dollar Family Dollar Stores Inc 8,061 - - -
Walgreens Walgreen Co 7,997 - - -
CVS CVS Caremark Corp 7,596 - - -
Others Others 773,456 776,389 767,994 765,827
Total Total 876,795 874,761 871,888 869,389
Table 19 Non-Store Retailing GBO Company Shares: % Value 2012-2016

Company 2012 2013 2014 2015 2016
Amazon.com Inc 14.6 17.6 20.4 22.4 23.8

eBay Inc 5.5 6.4 5.9 5.5 5.3
Apple Inc 2.9 3.4 3.4 3.4 3.4
Liberty Interactive Corp 2.2 2.2 2.0 1.9 1.8
Valve Corp 0.7 0.9 1.1 1.2 1.3
Macys Inc 0.9 1.0 1.1 1.1 1.2
Alliance Inc
Best Buy Co Inc 1.0 1.0 1.0 1.0 0.9

Target Corp 0.8 0.8 0.8 0.8 0.9
Kohl's Corp 0.5 0.5 0.6 0.7 0.9
HSN Inc 1.0 1.0 1.0 0.9 0.8
Wayfair LLC 0.2 0.3 0.3 0.5 0.8
Williams - Sonoma Inc 0.6 0.6 0.6 0.6 0.6
Nordstrom Inc 0.4 0.5 0.5 0.6 0.6
Office Depot Inc 0.4 0.7 0.6 0.6 0.6
Limited Brands Inc 0.6 - - - -
Others 54.6 48.5 42.7 39.8 37.3
Total 100.0 100.0 100.0 100.0 100.0
Note: Vending data captures vending systems installed in public and semi-captive environments only. For
Table 20 Non-Store Retailing GBN Brand Shares: % Value 2013-2016

3rd Party Merchants Amazon.com Inc 10.0 12.2 13.7 14.6

CVS ProCare Mail CVS Health Corp - 8.6 9.5 10.2
Service
Amazon Amazon.com Inc 6.7 7.2 7.8 8.2
3rd Party Merchants eBay Inc 6.4 5.9 5.5 5.3
3rd Party Merchants Wal-Mart Stores Inc 2.4 3.6 3.7 3.8
App Store Apple Inc 1.3 1.5 1.6 1.7
QVC Liberty Interactive Corp 1.7 1.6 1.6 1.5
Steam Valve Corp 0.9 1.1 1.2 1.3
Macy's Macys Inc 1.0 1.1 1.1 1.2
Apple Apple Inc 1.1 1.0 1.0 0.9
itunes Apple Inc 0.9 0.9 0.9 0.9
Walgreens Mail Walgreens Boots - 0.9 0.9 0.9
Services Alliance Inc
Kohl's Kohl's Corp 0.5 0.6 0.7 0.9
Wayfair Wayfair LLC 0.3 0.3 0.5 0.8
Zappos.com Amazon.com Inc 0.6 0.6 0.6 0.7
CVS ProCare Mail CVS Caremark Corp 7.4 - - -
Service
Others 53.1 47.8 44.6 42.0
Total 100.0 100.0 100.0 100.0
Note: Vending data captures vending systems installed in public and semi-captive environments only. For
Table 21 Non-Grocery Specialists GBO Company Shares: % Value 2012-2016

Company 2012 2013 2014 2015 2016

Alliance Inc
Lowe's Cos Inc 3.0 2.9 2.9 3.1 3.3
Best Buy Co Inc 2.9 2.8 2.7 2.7 2.7
Rite Aid Corp 2.5 2.4 2.4 2.4 2.4
TJX Cos Inc, The 1.8 1.9 2.0 2.1 2.2
Apple Inc 1.1 1.1 1.1 1.2 1.2
Ross Stores Inc 0.9 0.9 1.0 1.0 1.1
Bed Bath & Beyond Inc 1.0 1.0 1.0 1.0 1.0
L Brands Inc - 0.7 0.8 0.8 0.9
Gap Inc, The 1.0 0.9 0.8 0.8 0.7
Ascena Retail Group Inc 0.5 0.4 0.4 0.6 0.6
Dick's Sporting Goods Inc 0.5 0.5 0.6 0.6 0.6
Menards Inc 0.5 0.5 0.5 0.6 0.6
Toys "R" Us Inc 0.7 0.6 0.6 0.6 0.5
PetSmart Inc 0.5 0.5 0.5 0.5 0.5
Tractor Supply Co 0.4 0.4 0.5 0.5 0.5
GameStop Corp 0.6 0.5 0.5 0.5 0.5
Burlington Coat Factory 0.4 0.4 0.4 0.4 0.5
Warehouse Corp
Limited Brands Inc 0.7 - - - -
Others 64.7 64.9 64.2 63.0 61.4
Total 100.0 100.0 100.0 100.0 100.0
Table 22 Non-Grocery Specialists GBN Brand Shares: % Value 2013-2016


Alliance Inc
Apple Apple Inc 1.1 1.1 1.2 1.2
Ross Ross Stores Inc 0.9 1.0 1.0 1.1
TJ Maxx TJX Cos Inc, The 0.9 0.9 0.9 1.0
Marshalls TJX Cos Inc, The 0.8 0.8 0.8 0.9
Bed Bath & Beyond Bed Bath & Beyond Inc 0.9 0.9 0.9 0.9
Dick's Sporting Goods Dick's Sporting Goods Inc 0.5 0.6 0.6 0.6
Menards Menards Inc 0.5 0.5 0.6 0.6
PETsMART PetSmart Inc 0.5 0.5 0.5 0.5
Victoria's Secret L Brands Inc 0.5 0.5 0.5 0.5
Tractor Supply Co 0.4 0.5 0.5 0.5
GameStop GameStop Corp 0.5 0.5 0.5 0.5
Burlington Coat Burlington Coat Factory 0.4 0.4 0.4 0.5
Factory Warehouse Warehouse Corp
IKEA Inter Ikea Systems BV 0.4 0.4 0.4 0.4
Barnes & Noble Barnes & Noble Inc 0.4 0.4 0.4 0.4
Others 66.9 66.2 65.0 63.4
Total 100.0 100.0 100.0 100.0
Table 23 Non-Grocery Specialists LBN Brand Shares: Outlets 2013-2016
sites/outlets
CVS CVS Health Corp - 7,755 9,558 9,550

Walgreens Walgreen Co - 8,086 7,965 7,955
(Walgreens Boots
Alliance Inc)
Rite Aid Rite Aid Corp 4,595 4,570 4,561 4,560
GNC (General GNC Holdings Inc 4,149 4,327 4,413 4,497
Nutrition Centers
Inc)
True Value True Value Hardware Corp 4,494 4,439 4,409 4,403
Ace Cooperative Ace Hardware Corp 4,171 4,251 4,311 4,353
Stores
GameStop GameStop Corp 4,201 4,099 3,976 3,962
Sherwin Williams Sherwin-Williams Co, The 3,654 3,738 3,812 3,858
Payless ShoeSource Payless ShoeSource Inc 3,341 3,349 3,334 3,340
(Payless Holdings)
Sally Beauty Supply Sally Beauty Co Inc 2,720 2,709 2,785 2,855
Home Depot Home Depot Inc, The 1,965 1,965 1,965 1,965
Sunglass Hut Lenscrafters Inc 1,849 1,881 1,891 1,906
(Luxottica Group SpA)
Lowe's Lowe's Cos Inc 1,717 1,793 1,805 1,808
RadioShack General Wireless - - - 1,733
Operations Inc
Claire's Claire's Stores Inc 1,766 1,689 1,619 1,596
Bath & Body Works L Brands Inc 1,559 1,558 1,574 1,576
Office Depot Office Depot Inc 1,891 1,725 1,549 1,540
Tractor Supply Co Tractor Supply Co 1,276 1,382 1,488 1,521
Ross Ross Stores Inc 1,275 1,361 1,446 1,490
PetCo PetCo Animal Supplies Inc 1,314 1,383 1,409 1,450
RadioShack RadioShack Corp 5,136 4,986 - -
Walgreens Walgreen Co 7,997 - - -
CVS CVS Caremark Corp 7,596 - - -
Others Others 474,323 469,849 470,220 464,016
Total Total 540,989 536,895 534,090 529,934
Table 24 Non-Grocery Specialists LBN Brand Shares: Selling Space 2013-2016
selling space '000 sq m

Home Depot Home Depot Inc, The 19,168.2 19,168.2 19,168.2 19,168.2
Lowe's Lowe's Cos Inc 17,414.3 17,144.9 17,259.6 17,288.3
Walgreens Walgreen Co - 8,165.4 8,060.4 8,050.3
(Walgreens Boots
Alliance Inc)
CVS CVS Health Corp - 7,064.6 7,437.2 7,431.0
Menards Menards Inc 5,503.9 5,503.9 5,534.0 5,534.0
Tractor Supply Co Tractor Supply Co 4,093.9 4,435.9 4,787.5 4,893.7
Ace Cooperative Ace Hardware Corp 4,087.6 4,166.0 4,224.8 4,265.9
Stores
Rite Aid Rite Aid Corp 4,268.9 4,245.7 4,194.9 4,194.0
Burlington Coat Burlington Coat Factory 3,716.1 3,869.4 4,052.0 4,088.5
Factory Warehouse Warehouse Corp
Hobby Lobby Hobby Lobby Stores Inc 2,963.6 3,122.0 3,377.5 3,862.9
Best Buy Best Buy Co Inc 3,775.6 3,755.7 3,716.0 3,716.0
True Value True Value Hardware Corp 3,255.2 3,225.4 3,203.6 3,199.2
Bed Bath & Beyond Bed Bath & Beyond Inc 2,998.9 2,998.9 2,989.7 2,995.8
Dick's Sporting Goods Dick's Sporting Goods Inc 2,438.3 2,640.7 2,830.2 2,849.9
PETsMART PetSmart Inc 2,453.7 2,577.8 2,620.2 2,690.5
Ross Ross Stores Inc 2,684.9 2,824.2 2,657.0 2,630.7
Barnes & Noble Barnes & Noble Inc 2,586.4 2,597.6 2,616.6 2,612.4
TJ Maxx TJX Cos Inc, The 2,295.8 2,365.4 2,430.2 2,488.4
Office Depot Office Depot Inc 3,405.8 2,853.7 2,502.2 2,487.6
Toys "R" Us Toys "R" Us Inc 2,363.4 2,378.3 2,363.4 2,389.5
Walgreens Walgreen Co 7,813.1 - - -
CVS CVS Caremark Corp 6,909.5 - - -
Others Others 355,570.5 346,555.3 344,460.8 341,378.6
Total Total 459,767.7 451,659.0 450,486.2 448,215.6
Table 25 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2016-2021
USD bn
2016 2017 2018 2019 2020 2021

Retailing 2,979.2 3,040.8 3,103.6 3,169.2 3,239.5 3,312.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.
Table 26 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth

2016-2021
% constant value growth, retail value rsp excl sales tax
2016/2017 2016-21 CAGR 2016/21 TOTAL

Retailing 2.1 2.1 11.2
trade sources
Table 27 Forecast Sales in Store-based Retailing by Channel: Value 2016-2021
USD bn
2016 2017 2018 2019 2020 2021

Mixed Retailers 381.0 382.2 383.5 384.9 386.1 385.7
Luxury Retailing 16.6 - - - - -
Off-price Retailing 48.1 - - - - -
trade sources
Note 1: Forecast value data in constant terms.
stores.
Note 4: No forecast data available for luxury and off-price retailing.
Table 28 Forecast Store-based Retailing Outlets by Channel: Units 2016-2021
outlet
2016 2017 2018 2019 2020 2021

Mixed Retailers 45,773.0 46,818.0 47,880.0 48,739.0 49,562.0 50,313.0
Luxury Retailing 1,552.0 - - - - -
Off-price Retailing 8,767.0 - - - - -
trade sources
stores.
Table 29 Forecast Sales in Store-based Retailing by Channel: % Value Growth 2016-

2021
2016/2017 2016-21 CAGR 2016/21 TOTAL

Luxury Retailing - - -
Off-price Retailing - - -
trade sources
stores.
Table 30 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2016-

2021
% unit growth
2016/17 2016-21 CAGR 2016/21 Total
Grocery Retailers -0.1 0.0 0.0

Luxury Retailing - - -
Off-price Retailing - - -
Store-based Retailing -0.3 -0.1 -0.7
trade sources
stores.
Table 31 Forecast Sales in Non-Store Retailing by Channel: Value 2016-2021
USD bn
2016 2017 2018 2019 2020 2021
Direct Selling 25.7 25.6 25.5 25.3 25.1 24.7

Homeshopping 88.4 86.1 83.7 81.1 78.6 76.1
Internet Retailing 312.1 351.4 394.9 443.1 496.4 555.7
Vending 5.5 5.5 5.5 5.5 5.6 5.6
Internet Pure Play 194.1 - - - - -
Retailers
Mobile Internet Retailing 96.3 122.0 147.3 177.1 211.9 248.4
trade sources
Note 1: Forecast value data in constant terms.
Note 4: No forecast data available for internet pure play retailers.
Table 32 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2016-

2021
2016/2017 2016-21 CAGR 2016/21 TOTAL
Direct Selling -0.3 -0.8 -3.8

Homeshopping -2.6 -2.9 -13.9
Internet Retailing 12.6 12.2 78.1
Vending 0.4 0.3 1.6
Internet Pure Play Retailers - - -
Mobile Internet Retailing 26.6 20.9 157.8

trade sources
Note 3: No forecast data available for internet pure play retailers.
Table 33 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space
2016-2021
2016 2017 2018 2019 2020 2021
Value sales USD bn 1,149.4 1,162.4 1,173.2 1,182.8 1,192.1 1,200.6

Outlets '000 529.9 526.7 523.9 522.0 520.4 519.1
Selling Space mn sq m 448.2 445.7 443.3 441.7 440.4 439.3
Table 34 Forecast Sales in Non-Grocery Specialists by Channel: Value 2016-2021
USD bn
2016 2017 2018 2019 2020 2021
Apparel and Footwear 195.5 198.3 201.1 203.9 207.0 209.9

Electronics and 103.9 103.4 103.1 102.9 102.8 102.9
Retailers
Health and Beauty 316.7 326.2 333.7 340.2 346.3 351.9
Home and Garden 350.2 353.2 356.0 358.4 360.4 362.2
Leisure and Personal 148.9 147.5 146.1 144.8 143.5 142.2
Goods Specialist
Retailers
Other Non-Grocery 34.2 33.7 33.2 32.6 32.0 31.4
Specialists
trade sources
Table 35 Forecast Non-Grocery Specialists Outlets by Channel: Units 2016-2021
outlet
2016 2017 2018 2019 2020 2021
Apparel and Footwear 118,920.0 119,082.0 119,108.0 119,278.0 119,357.0 119,440.0

Electronics and 46,766.0 45,323.0 44,251.0 43,465.0 42,851.0 42,423.0
Retailers
Health and Beauty 99,036.0 100,738.0 102,302.0 103,679.0 104,836.0 105,753.0
Home and Garden 118,813.0 116,653.0 114,796.0 113,566.0 112,759.0 112,290.0
Leisure and Personal 114,178.0 113,248.0 112,268.0 111,244.0 110,208.0 109,216.0
Goods Specialist
Retailers
Other Non-Grocery 32,221.0 31,691.0 31,211.0 30,762.0 30,354.0 30,008.0
Specialists
trade sources
Table 36 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth

2016-2021
2016/2017 2016-21 CAGR 2016/21 TOTAL

Retailers
Retailers
Home and Garden Specialist Retailers 0.9 0.7 3.4
Retailers
trade sources
Table 37 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2016-

2021
% unit growth
2016/17 2016-21 CAGR 2016/21 Total

Retailers
Retailers
Home and Garden Specialist Retailers -1.8 -1.1 -5.5
Retailers
trade sources
DEFINITIONS
GBO refers to global brand owner, which is the ultimate owner of a brand.
NBO refers to national brand owner, which is the company licensed to distribute a brand on
behalf of a GBO. The NBO may be a subsidiary of a GBO or it may be a completely separate
company. Share tables at both GBO and at NBO level are provided in the report. Reference
to shares in the report analysis is at NBO level.
SOURCES
Sources used during the research included the following:
Summary 3 Research Sources

Official Sources US Bureau of Labor Statistics
US Census Data
US Department of Agriculture
US Department of Commerce
Trade Associations American Apparel & Footwear Association
Consumer Electronic Association
Direct Selling Association
Electronic Retailing Association
Food Marketing Institute
International Council of Shopping Centers
Mass Market Retailer (MMR)
National Association for Convenience Stores
National Association of Chain Drug Stores
National Grocers Association
National Mail Order Association
National Retail Federation
National Retail Hardware Association - Do-It-
Yourself Retailing
Retail Industry Leaders Association
Sporting Good Manufacturers Association
The Food Institute
Trade Press Automatic Merchandiser
Boston Globe, The
Business Insider
Chain Drug Review
Chain Store Age
Chicago Tribune
Convenience Store News
Convenience Store Petroleum
Direct Marketing News
Direct Selling News
Drug Store News

DSN Retailing
Fast Co
Fierce Retail
Internet Retailer
Los Angeles Times
Multichannel Merchant
National Petroleum News
Natural Foods Merchandiser
New York Times
Nutrition Business Journal
PR Newswire
Progressive Grocer
PSFK
Retail Traffic
Retailing Today
Sheby Report, The
Specialty Food
Stores Magazine
Supermarket News
The Huffington Post
TWICE - This Week In Consumer Electronics
Vending Times
Wall Street Journal
Weekly Newspaper for the Home Furnishing
Network (HFN)
WWD - Women's Wear Daily
Source: Euromonitor International

Euromonitor Retailing in The Us

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RETAILING IN THE US

LIST OF CONTENTS AND TABLES

Table 21 Non-Grocery Specialists GBO Company Shares: % Value 2012-2016 ...... 21

Retailing Continues To Register A Positive Performance in 2016

Pursuit of Omnichannel Proficiency Intensifies

the Competition Continues Between Grocery and Non-grocery Retailers

Consolidation Continues in Retailing in the US

Digital Technology, Innovation and Pricing To Drive Growth in Retailing

KEY TRENDS AND DEVELOPMENTS

Pursuit of Omnichannel Proficiency Intensifies in 2016

Convenience Shapes Innovation in Retailing in the US

Summary 1 Standard Opening Hours by Channel Type 2016

and 21.00hrs 21.00hrs 21.00hrs 21.00hrs

Physical Retail Landscape

Cash and Carry

Payments and Delivery

Summary 2 Company and Business Model Overview 2016

Two pricing models: 1) One-off delivery: fees

membership fee in 2016 from USD299 per

Emerging Business Models

Store-based Retailing 2,327.0 2,385.6 2,431.1 2,473.1 2,508.6 2,547.5

Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2011-2016

% current value growth, retail value rsp excl sales tax

2015/16 2011-16 CAGR 2011/16 Total

Store-based Retailing 1.6 1.8 9.5

Table 3 Sales in Store-based Retailing by Channel: Value 2011-2016

Grocery Retailers 937.5 956.7 971.5 989.1 1,000.2 1,017.2

Table 4 Store-based Retailing Outlets by Channel: Units 2011-2016

Grocery Retailers 291,412.0 291,810.0 293,389.0 294,203.0 293,045.0 293,682.0

Table 5 Sales in Store-based Retailing by Channel: % Value Growth 2011-2016

% current value growth, retail value rsp excl sales tax

2015/16 2011-16 CAGR 2011/16 Total

Grocery Retailers 1.7 1.6 8.5

Table 6 Store-based Retailing Outlets by Channel: % Unit Growth 2011-2016

Grocery Retailers 0.2 0.2 0.8

Table 7 Sales in Non-Store Retailing by Channel: Value 2011-2016

Direct Selling 23.1 24.2 24.6 24.9 25.4 25.7

Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2011-2016

% current value growth, retail value rsp excl sales tax

2015/16 2011-16 CAGR 2011/16 Total

Direct Selling 1.3 2.2 11.5

2011 2012 2013 2014 2015 2016

Value sales USD bn 1,023.5 1,055.7 1,087.4 1,110.2 1,130.5 1,149.4

Table 10 Sales in Non-Grocery Specialists by Channel: Value 2011-2016

Apparel and Footwear 169.6 174.6 178.9 184.4 190.3 195.5

Table 11 Non-Grocery Specialists Outlets by Channel: Units 2011-2016

Apparel and Footwear 115,972.0 116,438.0 118,070.0 118,120.0 118,561.0 118,920.0

Table 12 Sales in Non-Grocery Specialists by Channel: % Value Growth 2011-2016

% current value growth, retail value rsp excl sales tax

2015/16 2011-16 CAGR 2011/16 Total

Apparel and Footwear Specialist 2.8 2.9 15.3

Leisure and Personal Goods Specialist -0.6 -0.2 -0.9

Table 13 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2011-2016

Apparel and Footwear Specialist 0.3 0.5 2.5

Table 14 Retailing GBO Company Shares: % Value 2012-2016

% retail value rsp excl sales tax

Wal-Mart Stores Inc 11.8 11.8 12.0 11.9 11.8

Table 15 Retailing GBN Brand Shares: % Value 2013-2016

% retail value rsp excl sales tax

Walmart Supercenter Wal-Mart Stores Inc 8.9 8.9 8.7 8.7

Table 16 Store-based Retailing GBO Company Shares: % Value 2012-2016

% retail value rsp excl sales tax

Wal-Mart Stores Inc 13.0 12.9 13.0 12.9 12.8