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GLOBAL TRENDS & FORECASTS, 2013Retail Horizons - Looking forward to 2020

December 2012MATTHEW STYCHResearch Director

ROBERT GREGORYGlobal Research Director

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1. Retail in 2012

2. 10 Trends for 2020i. Flexibility

ii. Internationalisation of Emerging Market Retailers

iii. Mycommerce

iv. Market Polarisation

v. Direct to Consumer

vi. Nostalgia

vii. Hyperlocal Marketing

viii. Community Retailing

ix. Digital Engagement

x. Logistics as a Differentiator

3. Retail in 2020: Implications

ContentsContents

1. Retail in 2012

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Shoppers are increasingly demanding more from retailers, who are having to face some uncomfortable questions.

1. Retail in 20121. Retail in 2012

CONSUMER

Increasingly fast-paced lifestyles Tech-savvy

Ageing population Single householdsUncertainty over economy

MARKET

LegislationWeak non-food sales

Saturation UrbanisationRising fuel prices

Rise of e-commerce

I want value

I want that NOW

I want convenience

I trust customer reviews

I want my voice to

be heard

Where does my

food come from?

Am I safe from Amazon?

Is big-box dead?

Does online need offline?

Should I exit international markets to focus on core

home market?

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Carrefour planet was seen as the retailer’s attempts to reinvent the hypermarket format, which has been losing share in Western Europe.

However, new CEO George Plassat has halted the roll-out of planet beyond 2012 given that converted stores had not performed as well as expected.

Carrefour planet was too costly to roll out on a wide scale and also caused confusion among shoppers about price positioning.

Failure of Carrefour planet, the retailer’s first major (and costly) attempt to revitalise the hypermarket, has sparked genuine concerns over the viability of the format.

The need to invest back in the core French market has ultimately led to Carrefour exiting non-core markets such as in South-East Asia.

2012 also saw other retailers, such as Best Buy and Tesco, launch new strategies based on big-box slowdown.

1. Carrefour halts roll-out of Carrefour planet concept in Europe beyond 2012.

Three events which impacted global retail in 2012:

1. Retail in 20121. Retail in 2012