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•  Fortune 500 turnaround•  P&L division leadership•  Retail startup experience •  SiriusXM Business Radio occasional co-host•  CBS News interviews as retail expert•  Board Director (including Weaver’s Way Co-op) •  Harvard MBA

Linda Shein Managing Director, Wharton’s Baker Retail Center

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Wharton’s Baker Center Advisory Board

Baker Director’s Council: Retail Innovators Board

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EVERYTHING has changed yet

NOTHING has changed.

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The Customer is still King (or Queen). But now we must serve her seamlessly across multiple

touchpoints with personalized and engaging experiences.

Knowledge. Is. Power.

The Omnichannel Equation “the whole is greater than the sum of the parts”

1 + 1 = 3Omnichannel shoppers spend up to:

- 7x more per year than store-only buyers & - 9x more than online-only customers

Source: Sports Authority Omnichannel Initiative

Source: US Department of Commerce; Internet Retailer

Ecommerce growth over 10 years

Source: US Department of Commerce; Internet Retailer

E-Commerce Sales % of Total Retail

Mobile Has Become Primary Device for Online Activity

89%77%

68%56%

42%

11%23%

32%44%

58%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015

Non-Mobile

Mobile

Percent of Online Retail Activity

Source: Internet Retailer 2014; eMarketer 2015; analysis

Mobile shoppers buy furniture

Apparel23% Spor;ngGoods19%

Furniture10%

Health/Beauty11%

Electronics8%PetSupplies6%Groceries5%

Books/Music/Games5%

AutoEquipment3%Toys/Kids/Baby2%OfficeSupplies1%

Source: Internet Retailer 2015

Mobile Purchase Percent Of Total eCommerce Category

69%48% 39% 29%

0%

20%

40%

60%

80%

Researchonline

Reviewsites SocialMedia Storesite

% Shoppers Using Pre-Commerce Online Sources

Source: Internet Retailer 2015

51%

28% 21%

0%

10%

20%

30%

40%

50%

60%

OwnDevice Kiosk/Display SalesAssociate

Shoppers Prefer Their Own Device For In-Store Assistance

In-Store Assistance:

•  Price Lookup

•  Product Information

•  Item Availability

•  Locate Product In-Store

Source: Deloitte Retail Study 2013

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Virtual & Augmented Reality: A Reality VR: digital recreation of real life AR: virtual elements overlayed on real world

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Bonobos opens storesthat don’t sell anything

Webrooming & Showrooming:An Omnichannel Phenomenon

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68%

32%

Yes No

70%

30%

Yes No

Browse in-store; buy online Showrooming Webrooming

Browse online; buy in-store Have you ever intentionally browsed products at a store, but decided to buy them online?

Have you ever intentionally browsed products online, but decided to buy them at a store?

Source: Global PwC 2015 Total Retail Survey

Instacart: Costco, Whole Foods, Co-ops

Food is the new black

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Thank you!Linda Shein

Managing Director, Baker Retail CenterThe Wharton School

University of Pennsylvania linkedin.com/in/lindashein