At one time, the physical store defined the retailer. It was the brand. Today, this has changed. Now the store is a part of a cross-channel experience. It is a combination of goods and services. The impact of the change is different by retail sector, but it is pervasive. While changes in other industries have happened incrementally through continuous improvement and process innovation, retail has been transformed by new business models. The pace is faster and the customer demands higher. Redefining the role of the store is critical. It requires partnerships of both retailers and manufacturers. It is for this reason that we wrote this report.

1. TM
Role of the Store Study:
Summary Charts
May 2013

2. Supply Chain Insights LLC Copyright © 2013, p. 2
Agenda

3. Supply Chain Insights LLC Copyright © 2013, p. 3
Study Overview

4. Supply Chain Insights LLC Copyright © 2013, p. 4
Respondents Are Primarily in the Specialty,
Grocery and Mass Merchant Retail Industries

5. Supply Chain Insights LLC Copyright © 2013, p. 5
Most Respondents Work in
Retail Management or Store Operations;
Two-Thirds Are Managers

6. Supply Chain Insights LLC Copyright © 2013, p. 6
Agenda

7. Supply Chain Insights LLC Copyright © 2013, p. 7
Most Have Physical Stores;
Mass Merchants Are More Likely to Have
e-Commerce and Social Commerce

8. Supply Chain Insights LLC Copyright © 2013, p. 8
Physical Stores Account for Largest
Share of Revenue Across Industries,
Especially for Grocery & Mass Merchants

9. Supply Chain Insights LLC Copyright © 2013, p. 9
Specialty and Mass Merchant Retailers Are
Somewhat More Likely to Allow Local Stores
to Have Their Own Sites

10. Supply Chain Insights LLC Copyright © 2013, p. 10
One-Fifth of Specialty, Mass Merchant and
Grocery Retailers Use Twitter for
Customer Service

11. Supply Chain Insights LLC Copyright © 2013, p. 11
Agenda

12. Supply Chain Insights LLC Copyright © 2013, p. 12
Physical Store Performance is Equally Below
Importance for Core Three Industries

13. Supply Chain Insights LLC Copyright © 2013, p. 13
Grocery and Mass Merchant Retailers Have More
Physical Stores Than Specialty Retailers

14. Supply Chain Insights LLC Copyright © 2013, p. 14
Grocery and Mass Merchant Retailers Have More
Physical Stores Than Specialty Retailers

15. Supply Chain Insights LLC Copyright © 2013, p. 15
By the End of 2013,
the Same Patterns Are Expected

16. Supply Chain Insights LLC Copyright © 2013, p. 16
Those in Specialty Retail Are More Likely to
Expect the Number of Physical Stores
to Stay the Same in 2013

17. Supply Chain Insights LLC Copyright © 2013, p. 17
Those in Grocery Retail Are More Likely
to Report an Increase in Sales Revenue
from Physical Stores vs. 2012

18. Supply Chain Insights LLC Copyright © 2013, p. 18
Those in Grocery Retail Are More Likely to
Report an Increase in Physical Store
Importance in Past Five Years

19. Supply Chain Insights LLC Copyright © 2013, p. 19
For Grocery’s Physical Stores, the Greatest
Opportunity Lies in Part in Demand Insights

20. Supply Chain Insights LLC Copyright © 2013, p. 20
For Mass Merchant’s Physical Stores, the
Greatest Opportunity Lies in Local Assortment

21. Supply Chain Insights LLC Copyright © 2013, p. 21
For Specialty’s Physical Stores, the
Greatest Opportunity Lies in Demand Insights

22. Supply Chain Insights LLC Copyright © 2013, p. 22
Volunteered Brand Differentiating Services
(Open-Ended)

23. Supply Chain Insights LLC Copyright © 2013, p. 23
Operations, Labor and Prices Are the
Top Physical Store Challenges
for All Three Industries

24. Supply Chain Insights LLC Copyright © 2013, p. 24
Most Are Working on Strategies to
Improve Physical Store Operations,
Especially Mass Merchants

25. Supply Chain Insights LLC Copyright © 2013, p. 25
Volunteered Strategies for Improving Physical
Store Operations (Open-Ended)

26. Supply Chain Insights LLC Copyright © 2013, p. 26
Volunteered Strategies for Improving Physical
Store Operations (Open-Ended), Continued

27. Supply Chain Insights LLC Copyright © 2013, p. 27
Employee Turn-Over at Physical Stores is
Reportedly Higher for Grocery
and Mass Merchant Retailers

28. Supply Chain Insights LLC Copyright © 2013, p. 28
Training is Most Common Effort to Combat
Employee Turn-Over at Physical Stores
for All Three Industries

29. Supply Chain Insights LLC Copyright © 2013, p. 29
Walmart Tops Volunteered List of Retailers
Who Do Store Management Well (Open-Ended)

30. Supply Chain Insights LLC Copyright © 2013, p. 30
Challenges or Goals for Store Management
(Open-Ended)

31. Supply Chain Insights LLC Copyright © 2013, p. 31
Challenges or Goals for Store Management
(Open-Ended), Continued

32. Supply Chain Insights LLC Copyright © 2013, p. 32
Agenda

33. Supply Chain Insights LLC Copyright © 2013, p. 33
Talent Issues Are Among Most Common
Supply Chain Pain for All Groups