1、1 The strategies, startups, corporations, and emerging technologies transforming the brick-and-mortar store. Reimagining the Physical Store 2 The presentation will also be sent to you. Feel free to share with colleagues. The resolution of some slides may be suboptimal due to the webinar software. Th2、ose slides will look fine in the presentation that we send you. Briefing recording will be distributed WITHIN 2 4 HOUR S 3 3 cbinsights Natan_Reddy #CBIretail J OIN THE C ONV ER S ATION ON TWITTER 4 WHO WE ARE The technology market intelligence platform. CB Insights software lets you predict, discus3、s, and communicate emerging technology trends using data in ways that are beyond human cognition. We are a leader in the Expert Automation & Augmentation Software (EAAS) space. 5 TR US TED B Y THE WOR L D S L EADING C OM P ANIES “We use CB Insights to find emerging trends and interesting companies t4、hat might signal a shift in technology or require us to reallocate resources.” Beti Cung, Corporate Strategy, Microsoft 6 TRANSFORM draws on the experience of successful executives from todays top companies and the latest research on technology, growth and innovation to cut through the fog about the5、 coming digital revolution. JOIN US ON DEC. 4 & 5 IN NYC RSVP TODAY 7 Natan Reddy Natan Reddy is an intelligence analyst at CB Insights. He currently produces data- driven analysis and reports on the areas of retail, supply chain & logistics, and e- commerce, among others. His research has been cite6、d in TechCrunch, CNN, Forbes, the Los Angeles Times, and more. Before CB Insights, Natan worked as a business valuation senior associate at Andersen Tax in San Francisco, where he valued dozens of startups and public companies. Natan is a graduate of the University of California, Berkeley with a maj7、or in economics and a focus in French. Most popular analyses by Natan: Amazon And Alibaba Have Already Conquered Online Retail. Now Theyre Coming For Offline. Major Links In The Global Trade Supply Chain That Blockchain Could Transform natan_reddy | Intelligence Analyst AB OUT THE ANAL YS T 8 Conten8、ts 9 10 20 29 37 48 Introduction The store as a destination Stores as the new fulfillment centers In-store automation drives data collection Retailers go local Whats next? 9 I M P A C T S O N T H E S T O R E T H E S T O R E A S A D E S T I N A T I O N S T O R E S A S F U L F I L L M E N T C E N T E 9、R S D A T A C O L L E C T I O N V I A I N - S T O R E A U T O M A T I O N I N N O V A T O R S T O W A T C H L O C A L I Z A T I O N Retail trends impacting the brick-and-mortar store E S T A B L I S H E DE M E R G I N G Retail stores continue to add non-retail-related services to stores Malls turnin10、g to coworking to fill space Stores reduce inventory to make space for digital fulfillment Retailers and fulfillment move closer to consumers Retailers are customizing the inventory and products of particular stores to surrounding neighborhood preferences Cashier-less stores and other in-store autom11、ation technology help gather consumer data to further personalization and store optimization 10 BEYOND PURCHASING The store as a destination 11 Pioneers in destination retail continue to attract shoppers The company launched its Today At Apple Program in May 2017 which offers interactive classes at 12、its stores worldwide, including music labs, kids hours, and coding. The companys Pay-Your-Age event this summer this summer attracted so many shoppers that the event had to be shutdown nationwide due to overcrowding. Apple launches in-store classes Build-A-Bear event crowds malls 12 Other retailers 13、catch on to “community” Nordstrom Local has no inventory but instead offers tailoring and alterations, online order pickup, personal stylist advice, and online returns. Nordstrom opened 2 more locations in Fall 2018 in Los Angeles. Sephora Studio offers beauty classes, advice from concierge, and fac14、ials to its customers. The stores incorporate interactive technology, like the Virtual Artist tool that allows customers to virtually try on new looks. Nordstrom and Sephora aim to become neighborhood community destinations. 13 Macys goes after destination retail via M&A Macys acquired startup conce15、pt store Story in May 2018. At its NYC location, Story transforms its store with new designs, product assortments, and interactive in-store experiences monthly. Each transformation embodies a new theme (i.e. “well-being”, or “made in America”). Select Story prior retail partners: 14 Athleisure rebra16、nds physical stores as wellness destinations Lululemon is constructing a permanent yoga studio at its new SoHo location in New York City. Bandier recently unveiled its dedicated fitness center, Studio B, at its flagship store in Manhattan, offering free classes to customers. Outdoor Voices hosts yog17、a and fitness events in its brick- and-mortar locations in NYC, San Francisco, Boston, Austin, and more. 15 Grocery stores as dining destinations? Albertsons opened bar Broadway on the Rocks at its Boise flagship location serving 36 beers on tap and seating for 200 people in July 2018. Sonoma-based 18、Olivers Market opened Tavern Off The Green. The tavern serves craft beer, food, and a host of monthly events to draw customers. Luckys Market devotes 25% of its floor space to non-retail, including dining areas, live musician space, and a designated room for neighborhood groups. 16 Total Funding: $119、0M Select Investors: August Capital, Redpoint Ventures Spacious plans to partner with retail landlords to fill 100 vacant street level storefronts with coworking space in New York City and San Francisco. Total Funding: $1.7M Select Investors: Sequoia Capital Re:Store will offer a shared storefront, 20、and coworking space for up to 60 online brands in San Francisco. Startups merge coworking and retail 17 Mall owners partner to bring coworking to shopping centers C OM M ER C IAL R EAL ES TATE J UM P S IN Mall owner Macerich partnered with coworking startup Industrious in August 2018 to add flexible21、 office space in its malls. The first will span 32K sq. ft. of Scottsdale Fashion Square in Arizona in January 2019. Mall owner Simon Property Group has partnered with fitness chain Life Time to open Life Time Work (a coworking and fitness space) so customers can work, exercise, and shop at Minnesot22、a Southdale Center. Brookfield-owned Water Tower Place mall in Chicago is partnering with Cowork At The Mall to install a 15K sq. ft. coworking and event space in an old Sports Authority that has been vacant since 2016. 18 Casper to expand its destination-style stores Mattress startup Casper, which 23、opened its first store in NYC in Feb2018, announced it plans to open 200 locations in the next three years. Caspers first store features interactive activities that highlight Casper products, including “bedrooms” where sleepers can test out a mattress. 19 Select Investor: Lerer Hippeau Ventures Uppe24、rcase, coming out of startup thisopenspace, is helping digital brands open and design their brick-and- mortar spaces. Total Funding: $3.6M Total Funding: $19M Select Investor: Balderton Capital Appear Here helps connect brands looking for short- term pop-up retail space to landlords that are willing25、 to provide short-term leases. Startups enable retailers to experiment with new store formats 20 BRICKS SUPPORT CLICKS Stores as the new fulfillment centers 21 Retailers are shaking up their supply chains to leverage stores as fulfillment centers for e-commerce purchases 22 Zara has integrated a sto26、ck management system that uses RFID garment tracking technology at stores across 25 markets to support same-day delivery for online purchases. Brooks Brothers is tapping its 260 North American retail locations to speed up online order fulfillment. The retailer is leveraging software via partner Manh27、attan Associates to optimize in-store fulfillment. Retailers speed up in-store online order fulfillment via tech 23 Target reduces store inventory to make room for online fulfillment Via its new “Flow Center” initiative, Target is now testing a faster inventory replenishment cycle to its stores from28、 a New Jersey facility. This reduces overall store inventory, but also allows its stores (especially small format stores) to dedicate more space to online order fulfillment. John Mulligan COO, Target 24 More holiday shoppers are rushing to the store to pick up online orders. Thats a good thing Novem29、ber 22, 2017 In-store pick up eliminates burden of last-mile delivery Sources: Crains, PYMNTS.com, Chain Store Age, CNBC, Business Insider 25 Supply chain startups can play a helping hand Supply chain startups that help retailers manage inventory and manage online order fulfillment via software and 30、robotics are gaining traction. 26 Total Funding: $11M Select Investor: Keen Venture Partners Nextail uses AI to help fast fashion retailers improve and measure the supply and demand of various products, improving inventory allocation and in-store operations. Nextails clients include retailers Pepe J31、eans, Stefanel, and Melon Fashion Group. Total Funding: $23M Select Investor: Summit Partners Relex Solutions offers inventory planning software to retailers to help minimize inventory and maximize sales across physical and online retail. The platform helps retailers manage different forms of e-comm32、erce delivery to ensure that popular stock is on-hand. Startups help brick-and-mortar manage inventory 27 Total Funding: $11M Select Investor: Keen Venture Partners Commonsense Robotics uses compact robots as a way to fulfill online grocery orders in micro- fulfillment centers, closer to urban areas33、. Total Funding: $23M Select Investor: Summit Partners Takeoff Technologies creates tech-infused micro- fulfillment centers that can partner with retailers for online grocery pick-up in under one hour. Takeoff just partnered with Sedanos Supermarket in Oct2018. Can shrinking warehouses combine with 34、shrinking stores? Can urban small-format stores leverage urban small-format robotic fulfillment technology? 28 Happy Returns gives online retailers the option of providing in-person returns for their customers. The startup partners with retailers to offer “return bars” for various online brands. Par35、tner retailers benefit from extra foot traffic to their stores. C AN S TOR ES DOUB L E AS IN -P ER S ON R ETUR N C ENTER S ? Funding $14M Select Investor Upfront Ventures 29 AUTOMATION GOES BEYOND CONVENIENCE In-store automation drives data collection 30 In-store technology is capturing data across 36、Store organization & layout Consumer preferences Product performance 31 Amazon Go makes headlines for its ability to capture data Amazon Go seeks to expand to 3,000 locations, and if so, will be able to capture in-store consumer data on a much grander scale. 32 Can other retailers leverage cashier-l37、ess technology for data? Standard Cognition provides AI-powered tech for retailers to automate the check- out process. It opened its first store in San Francisco in September 2018. Latest Round: Seed VC / $5.5M / Jul18 Zippin aims to provide cashier-less tech to retailers via cameras and shelf senso38、rs. It opened a prototype store in San Francisco in August 2018. Latest Round: Seed VC / $3M / Aug18 AiFi aims to deploy cashier-less technology designed to scale over large grocery stores. The company is currently piloting its technology with retailers. Latest Round: Seed VC / $4M / Feb18 33 Sephor39、a uses in-store beauty tech to collect data In-store and in-app augmented reality Sensory technology for fragrance testing Source: How Sephora Built A Beauty Empire To Survive The Retail Apocalypse Sephora has pioneered a variety of in-store technologies for beauty retail that collect consumer data.40、 Facial scanning for color matching 34 Facial recognition tracks shoppers in China Disclosed funding: $608M Select investors: Ant Financial, Foxconn Disclosed funding: $1.63B Select investors: Alibaba, Temasek, Qualcomm 35 Smile to pay tracks shoppers faces Alibaba partnered with Chinese startup Fac41、e+ to unveil facial recognition- based payments. Alibaba is currently piloting the pay-by-face technology in select KFC locations, and could expand it to retail. 36 Singapore-based Trax offers in-store visual monitoring of CPG products, and can help retailers optimize product placement and marketing42、 decisions. It acquired retail intelligence startup Quri in January 2018, and Nielsens Store Observation unit last year. C AM ER A V IS ION TR AC KS INV ENTOR Y Funding $272M Select Investor Boyu Capital 37 CITY-SPECIFIC APPAREL AND MORE Retailers go local 3838 What is localization? 3939 The customi43、zation of inventory, in-store services, and products to appeal to the tastes and preferences of local consumer demographics. DEFINITION 40 Localization takes on many forms Product localization Read more: Client Only 60+ Startups in Influencer Marketing In-store inventory localizationIn-store service44、 localization 41 Target is expanding its urban small format stores, opening dozens of locations in the US since 2012. Each location tailors its in- store inventory to the demographics of the surrounding neighborhood through community-based research. Target localizes inventory based on community rese45、arch Target is opening small format stores near college campuses that will uniquely stock: Grab-and-go food options School supplies Dorm room essentials 42 Amazon, Nike, and Kohls localize inventory based on data Nike by Melrose stocks its shelves with inventory based on online purchase data of cons46、umers in the surrounding areas. Amazons new Amazon 4-star store sells items highly rated by customers in New York on A. Kohls localized 95% of the inventory at its stores to appeal to local consumers by analyzing customer purchasing data. 4343 “When we say by Melrose, we really mean this assortment 47、is created by local consumer interests and their engagement and their purchases.” Michael Martin VP of Digital Products, Nike NIKE B Y M EL R OS E IS M ADE B Y L OC AL R ES IDENTS 44 Nike offers in- store services that cater to LA Nike by Melrose offers curbside pick-up to cater to LAs car culture, 48、allowing customers to retrieve items without having to find parking. 45 Adidas creates new city-specific running shoes Adidas launched its new AM4 (“Adidas made for”) line of city-specific running shoes in 2017. The shoes are customized to specific needs of runners in cities around the world (i.e. t49、he sharp turns of NYCs street grid). 46 Adidas uses new factories to localize apparel The new AM4 is made at Adidas Speedfactories. What are Speedfactories? Adidas new manufacturing facilities that leverage 3D printing, robotic arms, and computerized knitting to produce new shoes and apparel. How many Speedfactories are there? There is one in Ansbach, Germany, and one in Atlanta, Georgia. What is their purpose? The Speedfactories bring most of the shoe production process under one roof, cutting down manufacturing time from several months to just days. The facilities are capable of quickly pro