Marcos Gouvea de Souza, General Director, GS&MD Group and Tiago Simoes, Head of Marketing, Sonae

1. Leader of the pack: Differentiating your
brand with new global service models
Marcos Gouvea de Souza, General Director, GS&MD Group
Tiago Simoes, Head of Marketing, Sonae

2. Marcos Gouvêa de Souza, General Director, GS&MD Group
Tiago Simões, Head of Marketing, Sonae

3.  A Global Study to better understand the emergent trend
 A bit about the concept and why to focus on this matter
 The eight Services @ Retail waves
 How Sonae became a global benchmark
 Conclusion and a Vision of the Future
Agenda

4. Global Presence
 More than 20 years of experience and
presence in 25 countries
 Most retail channels and segments
 Innovative and pragmatic solutions
 From strategy and omniretail concept
development to hands-on
implementation.

5. Why Services @ Retail became so relevant
The convergence of 3 major drivers
Environment
1
The Demand Side The Offer side
2 3

6. The first driver
The Tecnoera and Digital Reality changing
Omniconsumers Behavior
Environment
1 US internet Users Who Prefer to Shop Digitally vs. In-Store by
Generation - 2016
28%
41%
56%
67%
72%
59%
44%
33%
Seniors
Baby boomers
Gen X
Millennials
Digitally In-store
Note: millennials ages 18-34, Gen X ages 35-49, baby boomers ages 50-68 and seniors
ages 69+
Source: Emarket

7. The second driver
Omniconsumers spending more with services globally
2
The Demand Side
49,9%
75,6%
53,0%
77,4%
BRIC France, Japan,
United Kingdom e
USA
2005 2016
2005 2016
CHINA 41,4 51,6
INDIA 53,1 53,8
RUSSIA 57,0 62,8
CHILE 58,5 64,4
BRAZIL 65,9 73,3
JAPAN 70,6 72,8
USA 76,9 78,1
FRANCE 76,6 78,8
UNITED KINGDOM 76,3 79,2
Services as a % of GDP per country
Source: World Bank. Adaptation
GS&Inteligência

8. The third driver
 An alternative to face the increasing
competitiveness
 Facing the “more for less” and “value oriented”
behavior in a digital scenario
 Blending products with services to create
solutions
3
The Offer Side

9. The eight waves
1BEGINNING
Basic services
operated by third
parties
2EARLY STAGE
Basic services
operated by retailer
3EXPANSION
Financial services
4DIVERSIFY
Services outside
retailers’ core
business
5SPIN OFF
Services offered as
a new business
6DIGITAL
Digital leveraging
services
opportunities
7SUPPLIERS
Suppliers entering
services business
8INVERSION
Companies start to
focus more on
services than
products

10. By the retail perspective there are four key motivations
DIFFERENTIATION: services offer as a
competitive advantage compared to the
competition
Increase PROFITABILITY: services offer
focusing on a higher gross margin
Leverage REVENUES: portfolio of services
aiming revenues increase
QUALITY: in order to assure the quality
offered by brands
Services for
differentiation
Services to
increase
profitability
Services to
increase
Revenues
Services to
assure quality
01
02
03
04

11. Tiago Simões
Head of Marketing Sonae MC

12. SONAE RETAIL’S SERVICES MODEL
Tiago Simões, Head of Marketing Sonae MC

13. +40,000EMPLOYEES
409 M€EBITDA
5,329 M€
TURNOVER
SONAE IS THE
LARGEST
PRIVATE
EMPLOYER
IN PORTUGAL

14. * September 2017 (This includes operations, third party services, representative offices, franchising agreements and partnerships)
90COUNTRIES*
I N T E R N A T I O N A L E X P A N S I O N
SONAE CORPORATE PROFILE

15. SONAE CORPORATE PROFILE | O R G A N I Z A T I O N
SONAE MC
Food Retail
SONAE S&F
Sports &
Fashion
WORTEN
Electronics
Retail
SONAE RP
Retail
Properties
SONAE FS
Financial
Services
SONAE IM
Investment
Management
SONAE SIERRA
Shopping centres
developer, owner
and manager
NOS
Telco
100% 100% 100% 100% 26% to
89,9% 50% 23,4%100%
EFANOR
SONAE CAPITAL SONAE INDÚSTRIA
63% 69%53%

17. Founded in 1985
Food retail leader in Portugal
15x winner of Portuguese
Trusted brands award
>250 stores and growing,
with full national coverage

18. Post-sale support
with flexible
returns policy
Tokens for
shopping carts
Assisted shopping
for reduced
mobility customers
+50 Basic Services
P H Y S I C A L S E R V I C E S

19. Price checker Universal queue
management
system
Mobile phone
charging station
Orange juice
machine in
resting areas
Free Wifi
P H Y S I C A L S E R V I C E S

20. 5 Check-out options
P H Y S I C A L S E R V I C E S
Individual with
single queue
Self scanning Self check-out Click & Go
Home shopping
store delivery
Home delivery
Store shopping
home delivery

21. Continente Auto
Self-serviced
car wash
Car maintenance services (3rd party)
Glass repair and general maintenance
on selected stores
P H Y S I C A L S E R V I C E S

22. E-Commerce WhatsApp
direct to store
Online stores
geolocation on
all platforms
Digital queue
management
Street view
D I G I T A L S E R V I C E S

23. CARD
Launched in 2007
Largest loyalty card in Portugal,
owned by 80% of portuguese families
Multi-brand loyalty,
accepted in 1.700 stores
Exclusive in-store promotions, mailing
coupons and other advantages
~300M€ issued discounts per year

24. M U L T I - B R A N D
P L A T F O R M
CONTINENTE
CARTÃO
CARD

25. CARD

26. L E A D I N G
PA R A P H A R M A C Y
chain in Portugal
S P E C I A L I Z E D I N
health, beauty, wellness
and optics
OV E R 2 0 0 S TO R E S
and micro-stores

27. EYES CONSULTATIONS
Optometry exams &
contact lenses’ fitting
Child, pregnancy
and geriatric nutrition
Weight control
CONSULTATIONS
NUTRITION COUNSELING
Intolerances
& allergies
etc

28. S E R V I C E S
NAIL CENTERS
Nails4’ Us
EYEBROWS AND
EYELASHES STATIONS
Wiñk
HAIRDRESSERS
Jean Louis David
+20BEAUTY
CENTERS
& SPA
BEAUTY

29. HEALTH PLAN
Partnership with health
insurance provider
(AdvanceCare)
Discounts on a wide range
of medical services + 15%
on-card discount
Completely free for Continente Card
holders & respective families

30. Convenient
locations within
main shopping malls
D R . W E L L’ S
CLINIC
Specialized medical
care with low prices
Initial focus on dental
care and aesthetic
medicine, more to come

31. CARD

32. Leading stationary store
chain in portugal:
+30 stores for gifts,
office supplies, books,
magazines,tobacco, etc
national post
office station
copy center

33. CARD

34. Specialized veterinary clinic
& pet store chain
Grooming services
bath, shearing, nail clipping, etc
Veterinary services
exams, vaccinations, deworming, etc
Training
individual or group sessions

35. CARD

36. Leading appliances & electronics
store in Portugal, founded in 1996
Over 180 stores in
Portugal and 40 in Spain
Wide range of services:
repairs, installations,
disposals, insurances,
ink & toner filling, etc
Ticket sales, photo printing,
workshops, etc

37. CARD

38. CARD

39. Child fashion & accessories
store chain, founded in 2004
Over 50 stores in Iberia and
presence in 20 other countries
Birth lists
Childcare equipment rentals

40. CARD

41. CARD

42. Major sports retailer in Iberia,
with over 110 stores (soon to
become #2 player with 280+
stores after merger with JD
Sprinter Iberia)
Foot type test
(neutral, pronator,
supinator)
Fitness video-guides
Omnichannel access

43. CARD

44. CARD

45. All-in-one:
Credit card, Continente Card,
Sport Zone Card, Worten Card
Multiple payment options:
full, 3x, 6x and 12x
1% additional discount on all purchases
and additional discounts on gas purchases
Consumer finance services
Financial services dedicated brand

46. CARD

47. S O N A E
SERVICES MODEL
Huge development in services
in our stores
The spin off and
creation of specialized
banners is our model -
the model itself, creates
a services power center
in each store – super
convenient for our
customers
Services in all
waves identified
Beginning
Early stage
Expansion
Diversify
Spin off
Digital
Suppliers
Inversion
Services with several
strategic purposes
Differentiation
Revenue
Profitability
Quality

48. SONAE RETAIL’S SERVICES MODEL
THANK YOU
Tiago Simões, Head of Marketing Sonae MC
tsimoes@sonaemc.com

49. To keep in mind
Products and brands operations in
the traditional retail scenario will
be, structurally, more competitive
and less profitable

50. To keep in mind
Retailers must take advantage
of the constant and updated
information involving
Omniconsumers’s attitudes,
expectations and habits to
create strategic advantage
providing solutions beyond
just products

51. To keep in mind
Develop, deliver, install and support
solutions, blending products and
services, represent an opportunity,
but also a challenge for traditional
retailers

52. To keep in mind
Retailers born in the digital age
have culture and business models
more plural and open to
incorporate services and solutions
into their strategic performance in
a more agile way

53. To keep in mind
In the coming years local or
global retailers will experience a
significant increase in services’
revenues and profits
participation

54. The complete Retail @ Services Global Study Report
Available Feb 7th, 2018
http://oferta.gsmdnrf.com.br/services-retail – Portuguese, Spanish and English
www.ebeltoftgroup.com – Portuguese, Spanish and English

55. Marcos Gouvêa de Souza
mgsouza@gsmd.com.br
Tiago Simões
tsimoes@sonaemc.com
Thank You!