Nurun Retail Business Models Trend Report December 2012

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December 2012

Business Models Trend Report | December 2012

Executive Summary
Business models are no longer an invisible component of retail strategy. Changes
in customer expectations and technology have spurred the development of
innovative new business models that are shaping the future of retail. To help
retailers navigate these changes, Nurun has prepared a report that identifies and
describes six key business model trends:

1 The conflicted consumer:
Retailers are struggling to adapt to a world of opposing consumer
tensions.

2 eCommerce converges with bricks-and-mortar (and vice-versa):
Formerly separate business models are slowly amalgamating.

3 Vertical integration makes a comeback:
Some of the most recent retail brands have embraced vertical integration
from day one.

4 Affiliate marketing has its moment:
A new wave of eCommerce built around affiliate marketing has emerged.

5 Paying for usage:
Temporary ownership of cars, dresses and toys is growing in popularity.

6 Please subscribe:
New automated subscription services are providing enhanced consumer
convenience and product variety.

Along with a thought-provoking look at each of these six trends, this report
contains a series of provocative questions for each trend that will help retailers
consider how they might evolve their current business model.

2


Manage the ambiguous future
with strategic foresight
Daily blog posts. Monthly magazines. Quarterly trend reports. Must-read books.
Anyone who works at the intersection of technology and people is swimming in Steps of strategic foresight
information. This data smog can make deciphering the implications of the latest
tech and social developments difficult. One solution is strategic foresight, which 1 Trend scan
can help you make sense of emerging trends and clearly evaluate your options for
the future. It’s a tool to manage risk when facing ambiguity in the marketplace.
2 Identify trend drivers

Strategic foresight doesn’t predict the future, but it does help prepare you for it 3 Evaluate critical uncertainties
by envisioning a number of different, yet possible, future states in the market
4 Future scenarios
landscape 10+ years from now. These future states are often described as a set
of scenarios, and they emerge from an analysis of current trends. So, as a simple 5 Strategic implications
example, the increasing popularity of pop-up retail spaces, combined with the
high adoption of mobile devices, could develop into a future filled with transient 6 Action plan
storefronts. This scenario would be made possible due to the minimal wired
7 Monitor trends
infrastructure required for information and payment.

The rapid uptake of technology means that our social lives, cultural experiences,
policies, regulations, ecological landscape, and business models are increasingly
intertwined. Through its very design, strategic foresight is built to accommodate
complexity by considering trends from a multi-dimensional perspective.

3


Why Retail Foresight?
The Nurun Toronto team has launched a strategic foresight initiative to articulate
the future of business-to-consumer (“B2C”) retail and commerce, and explore Steps of strategic foresight
implications for Canadian and U.S. retailers. The scenarios we generate will give
our retail clients the toolkit necessary to start imagining (and preparing for) the 1 Trend scan
possible futures in the marketplace.
Marketing and Merchandising
The first of seven steps in the strategic foresight process involves trend scanning. Business Models
The trends we capture will be published as a series of trend reports that focus on
five domains of importance to both online and omni-channel retailers. Value Exchange

Analytics
This is the second of five trend reports, and it looks at retail through the lens of
business models. Next will be a report on value exchange, followed by analytics Emerging Technology Platforms
and emerging technology platforms. The culmination of trend scanning and
subsequent phases will inform future scenarios in our final strategic foresight
report. For more information, you can follow the project on Nurun’s blog,
Digital for Real Life or subscribe to our email list, futureofretail@nurun.com
3 Evaluate critical uncertainties

4 Future scenarios

5 Strategic implications

Preparing for the Future of Retail:
A Strategic Foresight Report

6 Action plan

7 Monitor trends

4


Introduction
For many decades, business models were one of the most invisible aspects of
retail. But changes in consumer culture, customer expectations, market forces
and technology have spurred the development of new retail models. The resulting
success and influence of companies like Amazon and Apple on the traditional
retail landscape has resulted in considerable attention from consumers, media and
retailers alike (Internet Retailer, 2012).

Given the necessity of rethinking retail strategies in an era of innovative business
models, Nurun has prepared a report that identifies six key trends. As a starting
point, Nurun used the definition provided by Alexander Osterwalder and Yves
Pigneur in their book Business Model Generation: “A business model describes the
rationale of how an organization creates, delivers and captures value. Building on
”
this, we defined value along three dimensions:

·· Customer (utility)
·· Business (financial)
·· Social (community impact)

We also used Osterwalder’s business model canvas as a tool to help us
understand the key components of various business models and relationships
between the different building blocks during our trend scan.

For many established retailers, a recent challenge has been to try and seamlessly
integrate new business models with their existing retail approach. In the process,
core aspects of traditional retail business models are being rethought, often out of
necessity. New online revenue streams have added complexity to business models
that were originally designed to deal only with straightforward in-store retail
transactions. This means finding new ways to drive profit and stay competitive in
an omni-channel environment.

Changes in consumer expectations and behaviours will continue to drive the
evolution of new retail models. As evidenced by The Conflicted Consumer
trend, many retailers are still struggling to adapt to a world of opposing consumer
tensions, such as a desire for the benefits of both local and global retail.

This confusion might be a necessary, but temporary aspect of the transformation
of retail. The eCommerce converges with bricks-and-mortar (and vice-versa)
trend suggests that two formerly separate retail business models are starting a
slow and uneven process of amalgamation. ⊲

5


Just as with music or clothing, certain business models go in and out of fashion.
The retail trend of Vertical integration makes a comeback demonstrates that
extending an existing business model into new parts of the value chain can give
it a new life. In other cases, new business models have been made possible by
the Internet, explaining the Affiliate marketing has its moment trend.

Along with these larger shifts in retail business models, Paying for usage and
Please subscribe are two mini trends that we believe will persist over the long
term and are worth watching closely.

This report offers a thought-provoking look at each of the six trends mentioned
above, along with a series of provocative questions that relate to each trend.

A complete strategic foresight report that incorporates these six retail
business model trends, along with key retail trends relating to marketing and
merchandising, value exchange, analytics and emerging technology platforms,
will be released in early 2013. (Our first trend report on Marketing and
Merchandising is available here.) ■

Nurun Toronto found four major trends and two mini trends relating to retail
business models:

Major Trends
1 The conflicted consumer
2 eCommerce converges with bricks-and-mortar (and vice-versa)

3 Vertical integration makes a comeback

4 Affiliate marketing has its moment

Mini Trends

5 Paying for usage

6 Please subscribe

6


1

The conflicted consumer
Consumer expectations for retailers continue to evolve due to a variety of social,
economic and cultural factors. These factors include a greater degree of social
responsibility, a pressing need for convenience and a new awareness of shopping
local in a global marketplace. In order to stay competitive and respond to new
consumer demands, some forward-thinking retailers have developed innovative
new business models.

The result of this mutual influence is an ongoing dance between customer
expectations and new business models. This has helped to encourage the rise
of the conflicted consumer, a development that has become more noticeable as
startups, boutiques and niche retailers populate the marketplace and highlight
these new consumer inclinations and points of tension.

Everything vs. one thing
Consumers appreciate the wide assortment and one-stop shop aspect of the
“everything for sale” approach made popular by Walmart. At the same time, they
also find that niche retailers like Lululemon or Dollar Shave Club provide them
with an opportunity to display their sophistication or save significant amounts
of money. As a result, the growth of both long-tail models and specialized niche
retailers in the age of eCommerce has led to an increasing polarization in retail
business models.

Consumer vs. citizen
Many people are now trying to satisfy a human desire to contribute to the greater
community when they shop. In response, companies like Toms and Warby Parker
have woven a commitment to social responsibility into the core of their business
model. Toms donates a new pair of shoes to a child in need for every pair
purchased. Warby Parker follows the same model, only with eyeglasses.

Permanent vs. occasional retail
Work pressures due to a challenging job market, along with a variety of related
time constraints means that consumers are demanding an increasing amount of
convenience when they shop. One of the biggest attractions of online retail is an
always open, 24/7 shopping environment. While convenient, eCommerce can also
decrease the urgency of purchase. ⊲

1 2 3 4 5 6 7


One response to this challenge is the creation of retail scarcity and novelty
through location and product stock. This approach acknowledges that many
consumers gain social status and pleasure from owning “limited edition” items.
This helps to explain the continued popularity of pop-up shops that remain in a
temporary location anywhere from a few hours to a few weeks. Some stores,
including Toronto’s Dough by Rachelle (Liu, 2012) and The Doughnut Vault in
Chicago (2012), are taking this idea further, staying open only as long as they
have inventory to sell.

Hyper-local vs. mega-global
Due to the popularity of farmer’s markets and a newfound focus on the merits
of buying local, consumers have become more aware of the distance food
travels to reach their plate. Recent developments have also sparked similar
conversations about local versus global retail.

In the Canadian retail landscape, new entrants such as Marshalls, Nordstrom
and Target serve as a reminder of the global reach of retailers. At the same
time, Toronto-based website Shopcaster curates products from local indie
stores that do not consider eCommerce to be their core strength. Meanwhile,
recent entrant Shop.ca aims to combat the growing dissatisfaction felt by
Canadian online shoppers when faced with high shipping costs and duty
charges from American retailers (Silcoff, 2012). ■

8 Forward Thinking
What new retail opportunities might emerge as a result of conflicting
tensions in consumer attitudes and behaviours?

How might you showcase specific products while also offering customers a
wide array of options?

What values and beliefs does your brand hold true? How might you
incorporate sustainability and social responsibility practices into your
business model?

How might you cater to both convenience-seeking customers and those
looking for unique products and experiences with exclusivity?

What actions are you taking to make localization a part of your national or
international retail strategies?

1 2 3 4 5 6 8


2

eCommerce converges with
bricks-and-mortar (and vice-versa)
Consumers have always formed their understanding of brands through a
culmination of interactions and experiences. They expect consistency across
touchpoints, despite the proliferation of channels in recent years.

The result is that after amassing more than a century of retail expertise
following the emergence of the department store, many traditional bricks and
mortar retailers have had to add an online component. While the goal is to offer
customers a seamless omni-channel experience, a smooth transition from bricks
to clicks has been difficult for all but a handful of retailers.

New and improved in-store retail
Despite the numerous challenges facing traditional
retailers, having a physical location still provides many
advantages. As Jerry Storch, Chairman and CEO of Toys
‘R’ Us argued during Shop.org’s annual summit, “While
there has been much focus on online-only shopping
– and our own e-commerce sites have grown to a $1
billion business – the reality is that the vast majority of
sales still occur in physical stores.”

The trick has been finding the best way of combining
eCommerce with in-store to create a connected retail
experience. The first step is rethinking multiple pools of
inventory for each channel (e.g. in-store, online, etc.) and
instead shifting towards centralized or fluid inventory.
Such a shift allows retailers to ship products between
stores to meet customer demand, or provide “endless
aisle” options through the use of in-store technologies.
It also means giving customers the option to buy online
and pick-up in-store (B.O.P .I.S.) or buy online and return
in store (B.O.R.I.S.). In doing so, previously separate
Retail channel and department
supply chains are now merging in order to help retailers
integration matrix
lower their costs. These and other related omni-channel
tactics were discussed in our previous trend report on
Marketing and Merchandising. ⊲

1 2 3 4 5 6 9


Supporting
B.O.P.I.S. and
B.O.R.I.S.
through fluid
inventory

A recent study from CrossView demonstrates that B.O.P .I.S. and B.O.R.I.S. provide
opportunities for retailers to demonstrate superior approaches to customer service
that are not possible with pureplay eCommerce (McCue, 2012). This explains
why some retailers, are using drop shipping (consumers buy online, but products
are shipped direct from the vendor to the purchaser). This allows for enhanced
selection and helps companies shift their warehousing and inventory costs to
funding programs that improve the customer relationship. This strategy is not
without risks, however, as it adds complexity into the value chain through a need
to coordinate multiple organizations (both retailer and vendor).

Meanwhile, some bricks and mortar retailers are also trying to enhance their in-
store experiences, such as lululemon offering free weekly yoga classes in stores
and showrooms (lululemon athletica, 2012) and Reebok opening a gym in its New
York store (Pinter, 2012).

Making clicks more like bricks
While pureplay eCommerce offers many advantages, consumers are still hesitant “Managing customer service in
to fully embrace online shopping in categories where being able to touch or
eCommerce is a totally different
try on an item prior to purchase is considered central to the experience. But
job than managing customer
new options have emerged to help close the gap between online and in-store
experiences, including virtual fitting tools like Fits.me (2012). After taking a few service in bricks and mortar.
basic measurements, Fits.me will display garments on a representative version of There are different skillsets
the customer called a “FitBot. ” and rules and you have to
understand what excellence
New and nimble online retailers will continue to experiment with fresh approaches
to retail, thanks to business models that have been built from the ground up. But
means in each channel.”
for all their cutting edge approaches, certain online retailers are now realizing that – Dr. Donna Smith
eCommerce has limits and are starting to contemplate the previously unthinkable – Professor in the Ted Rogers School of
Retail Management, Ryerson University
a move into physical retail. ⊲

1 2 3 4 5 6 10


Convergent retail made simple “We really believe in the
Emerging technology solutions are making it easier for smaller retailers to offer
integration of online and offline.
convergent retail solutions through platforms such as LightSpeed. LightSpeed
That’s why we offer the free
integrates front-counter Point-of-Sale with eCommerce and also offers interactive
sales tools via the iPad and mobile solutions (LightSpeed Retail Inc., 2012). In monthly home trial – because we
a recent Reuters article about the 2012 holiday shopping season, HSN Chief know that some guys need more
Executive Mindy Grossman noted that, “I still see people looking at their than pictures. They need to touch
e-commerce strategy and saying mobile comes later. Actually, it should be the and feel and try on the clothing.”
opposite. (Bhattacharjee, 2012).
”
– Hicham Ratnani
CFO of Frank & Oak
Shopify, meanwhile, makes the process of creating and managing a small online
storefront as simple and seamless as possible, thanks in part to a recent shipping
partnership with Canada Post (Bury, 2012). The growth of convergent retail
platforms such as LightSpeed and Shopify now allow smaller retailers to focus on
other aspects of their omni-channel retail strategy, such as findability (the ease
in which customers can actively seek out an a retailer’s website), conversion (the
activities designed to convert shoppers into buyers) and transactions (the ease in
which customers can pay for goods and services). ■

8 Forward Thinking
Are you ready for a world in which the distinction between online and offline
channels no longer exists?

Is your team ready to build seamlessness into online and offline, along with all
the channels through which you deliver experiences?

1 2 3 4 5 6 11


3

Vertical integration makes
a comeback
Vertical integration is by no means a new business model – Ikea, Sony and
Danier have spent decades bringing their manufacturing and retail operations
in sync. Lately however, certain retail sectors have rediscovered vertical
integration because it can offer a distinct competitive advantage when
combined with other retail strategies. For Zara, vertical integration was crucial
in creating a fast fashion business model that allows stores around the globe to
stock new clothing twice a week.

Manufacturers set up shop
Companies that began as manufacturers are now
morphing and extending themselves into the retail
space. These include Apple (who started opening retail
locations in 2001), and Lego, who has spent the past
few years updating and expanding their retail presence
(Wikipedia, 2012a). The move from making to selling
requires moving away from drop shipping and shifting
into customer experience and service, which usually
requires outside expertise and significant investments.

Moving into retail does allow the manufacturer to
better align the brand promise with the customer
experience and offer a complete assortment of
products. This approach also increases profits, since
the manufacturer no longer has to provide a discount
to another retailer in order to carry their products.
Conversely, retailers that do not produce their own
products are finding that vertical integration can turn
former partners into competitors. ⊲

Vertical integration reduces
the distance between
manufacturer and customer

1 2 3 4 5 6 12


Think vertical from day one
Some of the most recent innovative retail brands have embraced vertical
integration from the start. These include Warby Parker, Frank & Oak and
Shoedazzle. As venture capitalist Boris Wertz recently argued in TechCrunch, “By
eliminating stores from the supply chain, these companies bring products directly
to consumers from the factory without the bloat of the traditional retailer. This
translates into high-quality products … at significantly lower prices. (2012).
”

In some ways, vertical integration is the ultimate expression of a private
label approach to retail. (For more thoughts on private labels and the rise of
Sophisticated Frugality, see our previous trend report on Marketing
and Merchandising.)

Fulfillment beckons
Another example of vertical integration can be seen in the launch of Amazon
Lockers. These lockers serve as a convenient way for customers to receive and
pick up shipments from self-serve stations, allowing Amazon to compete with the
immediacy of bricks and mortar (Manjoo, 2012). In the future, vertical integration
might mean eliminating the retail experience altogether, thanks to 3D printing
marketplaces such as Shapeways (Shapeways Inc., 2012). ■

8 Forward Thinking
How are you approaching fulfillment, an often overlooked part of a vertical
integration strategy, especially for eCommerce retailers?

How might you extend merchandising into a new realm of product design
and manufacturing?

What is the role of eCommerce in a vertically integrated company?

1 2 3 4 5 6 13


4

Affiliate marketing has its moment
Affiliate marketing was popularized thanks to Amazon’s widespread adoption of the “Affiliate programs are really
technique in 1996 (Wikipedia, 2012b). Amazon helped drive book sales and improve great for getting better reach
its online reach by paying a commission to websites willing to embed custom
across the Internet.”
widgets or otherwise link to specific books on their site.
– Sameera Banduk
More recently, new business models have emerged that prioritize affiliate Marketing Manager, Well.ca
marketing, as this approach provides a fixed cost per new customer acquisition,
among other advantages. Large-scale networks such as Commission Junction have
also made it easier for retailers to quickly plug into a large and extensive database “When a customer is doing
of relevant affiliates (Commission Junction Inc., 2012). research on a product shopping
engine, and you’re not there,
The second wave of affiliate retail that’s a core business issue. I think
Despite lower prices and increased convenience, convincing consumers to shop affiliate marketing will continue
online can still require a shift in habits and mindset, especially in Canada, where to be a important part of running
eCommerce adoption has been slower (eMarketer, 2012). Affiliate marketing can
an eCommerce business.”
help with this shift, which explains why newer online retailers such as Ebates
– Sarah Trimble
(Ebates Performance Marketing Inc., 2012), Upromise (Upromise Inc., 2012) and
Associate VP Interactive Marketing
,
RedFlagDeals.com (2012) have built their business around affiliate marketing.
& Community, Sears Canada
Skimlinks (Skimbit Ltd., 2012) provides another approach, providing bloggers
with an automated affiliate process by searching for keywords in blog posts and
providing links to the products and services mentioned. As consumers spend
increasing amounts of time online, it’s important for retailers to appear on the
sites that their customers are already using. This is especially true of sites where
customers tend to research new products. ⊲

1 2 3 4 5 6 14


Affiliate relationships
A successful affiliate marketing program requires a series of strong, personal
partnerships between retailers and affiliates. In order to better incentivize and
customize their affiliate program, Canadian health and beauty eCommerce
retailer Well.ca built an entirely new platform to manage their relationships with
bloggers and deal sites (Banduk, 2012). This platform provides more control,
access to real-time info, and helps Well.ca offer more personalized and creative
promotions to their affiliate network.

Affiliate Reverse Affiliate

Reverse affiliate
Along with bringing affiliate marketing to prominence, Amazon has also
developed a reverse affiliate program through their Marketplace. In this case,
retailers pay Amazon a commission to list their products alongside the rest
of the website’s comprehensive product assortment. Sears.com also offers a
related service (Sears Brands LLC, 2012). As with traditional affiliate marketing,
the goal is to gain access to a wider audience. For Amazon or Sears, a reverse
affiliate model provides another way to increase site monetization by selling
access to their already sizeable customer base. ⊲

1 2 3 4 5 6 15


Social commission
Along with traditional approaches to affiliate marketing are sites that employ
various forms of social commission. These include China’s Vancl Star (Daohen,
2011), sneakpeeq (2012) and Lockerz (2012), which was mentioned in our previous
trend report on Marketing and Merchandising. In exchange for promoting specific
products or services through social media, ordinary consumers earn points that
can be exchanged for discounts or cash. ■

8 Forward Thinking
Are you able to provide affiliates with unique and exclusive offers on an
ongoing basis to keep customers (and affiliates) interested?

Have you considered integrating your affiliate marketing strategy with popular
loyalty programs like AIR MILES?

1 2 3 4 5 6 16


5

Paying for usage
Mini Trend: Our research uncovered four significant trends in retail business
models, along with a handful of smaller trends that do not yet warrant a full
description. However, we believe that both of the following mini trends merit
inclusion in this report given their rapid uptake and popularity.

Since Ford launched the Model T car in 1908, owning a vehicle has become
one of the most visible status symbols for North Americans. But as Generation
Y (Millennials) continues to face serious economic pressures, buying a car has
lost its luster. As Josh Allan Dykstra argues in a July 2012 Fast Company article,
a number of factors, including the popularity of cloud-based music services and
alternate forms of transportation in urban centres, are helping to shape a new
approach to ownership. Rachel Botsman and Roo Rogers provide a more detailed
exploration of the evolution of ownership in their 2010 book What’s Mine Is Yours:
The Rise of Collaborative Consumption.

Zipcar, zipdress, zipbag, ziproom
This new paying for usage mentality helps explain the growth and popularity
of Zipcar and other car sharing options. But the idea of short-term rentals is
no longer limited to expensive items such as cars. It’s now possible to rent
dresses (rentfrockrepeat.com), handbags (BagBorroworSteal.com), children’s toys
(babyplays.com) and apartments (Airbnb.com).

8 Forward Thinking
Want to gain access to the private habits of influential customers? Be prepared
to openly barter for this information.

1 2 3 4 5 6 17


6

Please subscribe
Mini Trend: Our research uncovered four significant trends in retail business
models, along with a handful of smaller trends that do not yet warrant a full
description. However, we believe that both of the following mini trends merit
inclusion in this report given their rapid uptake and popularity.

In order to provide consumers with a reliable and convenient way to receive staple “We realized that young
goods, a number of new automated subscription services have emerged. The men now spend $50-$150
business model for subscription retail is relatively straightforward, but has been
per month on clothing or
tweaked in order to make it easy to return unwanted items.
accessories, instead of $500
twice a year. It’s similar to
Cheese, wine and underwear of the month how these men consume
A wide variety of retail items are now available through automated subscriptions,
information. They use Twitter
including cheese (Monforte Dairy Company, 2012), men’s clothing (Frank & Oak,
2012), women’s shoes (ShoeDazzle.com Inc., 2012), household products (Alice.
and Facebook and blogs
com, 2012), cosmetics (Topbox.ca, 2012), diapers (IncrediBundles.com LLC, instead of reading a gigantic
2012), wine (Zagat Wine, 2012) and digital books (24symbols, 2012). Walmart book every six months.”
Labs recently launched the Goodies Co. (Walmart Stores Inc., 2012), a monthly – Hicham Ratnani
subscription service that delivers an inexpensive box of sample-sized servings of CFO of Frank & Oak
artisanal food products. The goal of the service is to encourage customers to order
full-sized versions of their favourite new products.

Subscription services tend to improve customer retention rates and provide a
predictable source of income, as customers often create standing orders for staple
goods. There is, however, additional pressure on subscription retailers to ensure a
sufficient amount of relevance and novelty when including new items in order to
maintain customer satisfaction and loyalty over time.

8 Forward Thinking
How will you keep customers engaged once the initial novelty of subscribing
wears off?

1 2 3 4 5 6 18


What’s Next
Our next report will look at retail trends through the lens of emerging value
exchange, followed by analytics, and technology platforms. Once these trend Steps of strategic foresight
reports are complete, we will move to the next phase of strategic foresight:
identifying the driving forces underlying the trends. Those driving forces will 1 Trend scan
inform future scenarios, leading to the last phases in this strategic foresight
Marketing and Merchandising
initiative to articulate the future of B2C retail and commerce.
Business Models
For more information, you can follow the project on Nurun’s blog,
Digital for Real Life. If you have any questions, or want to receive an Value Exchange
email reminder when our next trend report is published, please contact Analytics
futureofretail@nurun.com.
Emerging Technology Platforms

Correction
In our previous retail trend report on Marketing & Merchandising, Nurun
described Krush as a retailer, when it is in fact a social discovery and
recommendation site. We apologize for this inaccuracy. 3 Evaluate critical uncertainties

4 Future scenarios

5 Strategic implications

Preparing for the Future of Retail:
A Strategic Foresight Report

6 Action plan

7 Monitor trends

19


Methodology
Nurun’s strategic foresight team performed a horizon scan using the “STEEPV”
framework to locate current and emerging trends and signals in the following
areas: Social, Technological, Economic, Environmental, Political, and Cultural Values.

These signals and trends were then clustered and sorted into six overarching
trends. Each of these overarching trends required the support of three to five
strong signals or examples. Some trends had an excess of signals – in those
cases, excess signals were catalogued for future inclusion or consideration.

Sincere thanks to the business model experts who graciously shared their insights
with us for this report:

Sameera Banduk
Marketing Manager at Well.ca
Sameera is a key member of the Well.ca team that brought the first Virtual
QR Code Store to North America in April 2012. Sameera is also an organizer
of Ecommerce Camp Toronto events and believes that the opportunity for the
growth of eCommerce in Canada is virtually endless.

Katherine Hague
CEO/Co-founder of ShopLocket
Katherine is a graduate of the Schulich B.B.A. program and ran her own
marketing consultancy throughout university where she worked with
companies ranging from the Fortune 500 to startups. Prior to co-founding
ShopLocket she was the Marketing Manager for Toronto-based energy solution
company ecobee.com and one of the first Shopify Theme developers. You can
find Katherine online at katherinehague.com.

Hicham Ratnani
CFO of Frank & Oak
Hicham has a background in engineering and worked for several years as a
strategy consultant at Deloitte before co-founding Frank & Oak in 2012. As
the company’s CFO, Hicham manages the technology and finance team, and
was named one of Montreal’s Top 25 Emerging Entrepreneurs at the 2012
international C2 (Commerce + Creativity) Conference. ⊲

20


Dr. Donna Smith
Professor in the Ted Rogers School of Retail Management, Ryerson University
Donna’s current research examines the influence of family business on retailer-
vendor strategic partnerships. In September 2010 she won the Best Paper
Award in the Doctoral Colloquium at the International Colloquium in Relationship
Marketing in Henley-on-Thames, England. Donna was President of the American
Collegiate Retailing Association (2006-2008), a global network of university
professors who teach and conduct research in retailing.

Sarah Trimble
Associate VP, Interactive Marketing & Community, Sears Canada
Sarah has been in marketing for over 10 years. Her marketing experience has
covered both traditional and digital media, with roles at a major multi-national
book publisher along with Indigo and Sears Canada. In her current role, Sarah
is responsible for the strategy, optimization and management of all digital
marketing programs at Sears Canada, including the affiliate program. Sarah
recently finished her Executive MBA at the Richard Ivey School of Business.

The Nurun foresight team will continue to monitor and collect new developments
in business models to inform subsequent strategic foresight work, especially
scenario development. ■

21


Sources
24symbols. (2012). 24symbols. Retrieved November 26, Huhman, H. R. (2012, April 5). JOBS Act To Jumpstart The Job
2012, from http://www.24symbols.com/en/ Market. Forbes. Retrieved from http://www.forbes.com/
sites/work-in-progress/2012/04/05/jobs-act-to-jumpstart-
Alice.com. (2012). Alice.com. Retrieved November 26, 2012,
the-job-market/
from https://www.alice.com/autodelivery
IncrediBundles.com LLC. (2012). Diaper Bundles ::
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22


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23


Meet the Nurun Toronto
Strategic Foresight Team
Ryan Bigge
As a Digital Content Strategist at Nurun Toronto, Ryan Bigge combines over 12
years of experience as a freelance journalist with a passion for design thinking and
interactive art. His writing has been published in the New York Times Magazine,
Report on Business, and the Toronto Star. As part of a recent residency at the CFC
Media Lab, Ryan co-created txt2hold.ca and tweet2hold.com, two related interactive
projects that convert digital experiences into tangible, permanent keepsakes.

Jen Chow
As Nurun Toronto’s Design Research lead, Jen utilizes a diverse set of consumer
research techniques to uncover insights and shape new opportunities for various
retail clients. Jen recently co-authored a report on the future of consumer-to-business
payments that focused on the Canadian banking industry as part of her work in
OCAD University’s Master of Design Foresight & Innovation program. Jen’s work
fuses her eclectic background in accounting and finance with her keen interest in
sociocultural trends and technology.

Kira Levine
As Senior Retail Strategist at Nurun Toronto, Kira’s focus is on translating consumer
needs into viable retail solutions, bridging both in-store and online capabilities.
She brings a unique blend of passion for retail with over nine years of experience
in category and product management. She holds a Bachelor’s degree in Retail
Management and an International MBA.

Audrey Carr
As Director of Digital Strategy, Audrey guides Nurun Toronto’s cross-functional
teams in identifying, framing and solving customer-centric opportunities across
our omni-channel retail clients, including Sears Canada, The Home Depot Canada,
Acklands-Grainger, and the LCBO. She also leads the development and evolution
of Nurun Toronto’s strategic capabilities in design research, design & retail strategy,
analytics, and interaction design.

24


About Nurun
Nurun is the world’s largest independent full-service digital agency, providing Follow Nurun Toronto:
a broad scope of services that are uniquely tuned to the opportunities and
@NurunToronto
challenges faced by online and omni-channel retailers.
Nurun Toronto on Facebook
With strong expertise in digital retail strategy, experience design, platform
development, enterprise integration, and platform management, Nurun Toronto Nurun on LinkedIn
crafts experiences that marry consumer brand engagement and digital utility for
some of Canada’s most recognized retailers, including Sears Canada, The Home
Depot Canada, Holt Renfrew, LCBO, and Walmart Canada.

For Toronto new business inquiries, please contact Emily Bond, Vice President,
General Manager at emily.bond@nurun.com.

25

Nurun Retail Business Models Trend Report December 2012

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