Confidential and For Internal Use Only

As this deck contains highly sensitive and confidential information, this deck must
NOT be shared with anyone except Employees of Deloitte

Retail, Wholesale and Distribution Global Sector Strategy

February 12, 2018
 Confidential and For Internal Use Only

Sector Overview
Retail is an attractive market (2nd largest by global sector revenue1), with a large number of
FG500s and some of the best-known companies in the world
~$ 20T $ 40B 40 ~ 3.6%
2016 global sector 21% Audit / 79% Advisory # of FG500 Projected FY16-20 addressable
Sector revenue 2016 addressable professional services market companies market growth
Attractiveness
1.1B
~$
Deloitte global Retail
~2%
Deloitte FY16
#
9
Retail revenue rank for
12 / 23
# of FG500 Audits / FG500 # of Crown Jewel
2
Competitive
FY16 Net Revenue market share Deloitte network Advisory clients >$20M NSR Accounts
Standing
At
Mass & Scale
Discount Under &
Grocery Scale Under Scale
Specialty & Under Scale
Wholesale & Under Scale
Subsectors Audit &Retailers
Assurance, $276MConvenience
Tax & Legal, $148M RA, $129M FA, $61M Drug & Pharmacy
Consulting, $436M
Stores Department Stores Distribution
Key
Companies
Credentials Mass and
<Non-disclosure Grocery (e.g.,
agreement <Non-disclosure agreement with client>) carry the most credentials with most recognizable global brands
with client>

# FG500 Firms
/ # GCJs 8/2 13 / 0 11 / 0 5/0 3/0
Key
Primary: US, NWE-UK, CA, AU, DE, ES, CN Monitor: FR, IN
Geographies

Heart of
Business
Issues

Growth Platforms,
Growth Customer Engagement, Technology
Opportunities
Cross-Sector Risk, On-Demand Logistics: On-Demand Logistics
Innovation:
Linkages Customer THS, Auto, CP, FSI
THS, CP, Auto, Media, Tech, Telecom, HC&LS, FSI, E&R Engagement
Technological Innovation Risk (Security, Privacy)
Potential
Disruptors

Notes: 1 Civil Government (i.e., National, State / Regional and Local / Municipal Governments) have the largest global sector revenues (combined total of $54.4 T in FY16)
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2
 Confidential and For Internal Use Only

Sector Trends
Retail is a $20T Sector located at the epicenter of the customer ecosystem with 40 FG500s,
making it an attractive sector for investment.
Large Client Base Critical Ecosystem
Given the high number of FG500s, retail has an The Retail ecosystem shares cross-sector linkages
opportunity to grow its GCJ portfolio with all companies who deliver products and services
to customers
Deloitte’s top 5 sectors (with FG500s) by FY16 global sector
revenues 1,2,3
Auto
Ratio
Global Sector # Caterpillar
Sector # GCJ (FG500s :
Rev. FY16  FG500
GCJs) THS Bridgestone CP
RWD $20 T 40 2 20 : 1. Michelin
Lufthansa Nestle
CP $13 T 27 8 3:1
FedEx lululemon
Real Estate $13 T 12 2 6:1
Marriott Nike
Chemicals $11 T 28 4 7:1
Oil & Gas $8 T 49 10 5:1
Tech/ E&R
Telecom
Shell
Massive Disruption Amazon Apple
Retail Exxon Mobil
Verizon Diversified Telecommunications
Holding Company #4
Epicenter of
Google BP
Customers are constantly connected and Customer Demand
experience driven with higher expectations
Media FSI
Configurations are changing as technology Sony HSBC
advances and traditional barriers are removed Disney US Bank
HC&LS
Facebook Diversified Health Care Company #1 AmEx
Competition from non-traditional retailers brings
Dana Farber
added volatility and market fragmentation
Anthem
Sources: 1 Consulting Data: DTTL 2020 MSC Client Segmentation Model
Notes: 2 This excludes the Civil Government (i.e., National, State / Regional and Local / Municipal Governments)
sector, which has the largest global sector revenues (combined total of $54.4 T in FY16) but no FG500 clients
3
Banking and Securities is ~$5T, per the approved Banking & Securities Global Sector Strategy

Copyright © 2018 Deloitte Development LLC. All rights reserved. 3


Heart of Business Issues
Clients turn to Deloitte to understand how to grow, engage their customers, enable technologies,
devise new fulfillment strategies and mitigate risks
Growth
Opportunities
• Increased volatility of
the retail space has
made competition for
market share more
intense, driving the
need for new growth
opportunities
• Established retailers are
seeking new growth
opportunities through
innovation, M&A and
diversification
• Emerging and non-retail
clients are seeking B2C
expertise in order to
better engage
consumers
Copyright © 2018 Deloitte Development LLC. All rights reserved.
Technology Customer
Innovation Engagement
• Backend platforms to • Winning retailers are
enable data analytics, building cross-sector
artificial intelligence, touchpoints that
robotics and other integrate seamlessly
traditional and into their customers’
exponential technologies lifestyle
are becoming
• Retailer must move
increasingly important
beyond omnichannel to
• Retailers need expertise completely rethinking
in innovating and every customer
modernizing their touchpoint, both digital
technology platforms and in-store
that enable them to
• Customer engagement
keep pace
is an issue across nearly
all sectors due to the
growing importance of
lifestyle services
Confidential and For Internal Use Only
Risk (Security,
On-Demand
Privacy,
Logistics
Regulation)
• As retailers collect and • The rise of Amazon and
store more and more other on-demand
consumer data, cyber delivery services has put
security is becoming an pressure on retailers to
increasingly important rethink their fulfillment
issue strategies
• Many exponential • This, in turn, is
technologies, such as disrupting the
robotics, virtual reality, technology and
AI, holograms, fintech, operations of retailers,
3D printing and wholesalers and
driverless cars, are no distributors
longer futuristic but are
• Retailers are now
being integrated into
exploring the growing
the customer journey;
list of options for
Retailers are in need of
fulfillment (e.g., click-
advice on how to
and-collect, in-home
mitigate their cyber
delivery, lockers,
security risks
drones) as well as
• Pressure on Regulatory reverse logistics
Compliance is increasing
and needs to be
managed in cost-
effective manner for
Regulatory areas such
as: Privacy\GDPR, IFRS,
Food Safety, Labor Law,
Environmental, PCI,
Healthcare, 3rd Party
Screening
4
 Confidential and For Internal Use Only

For more information

Please contact the global sector leader if you have any questions related to the
strategy.

Evan Sheehan
Global Sector Leader: Retail, Wholesale & Distribution
esheehan@deloitte.com

Katie Weir
Global Sector Specialist: Retail, Wholesale & Distribution
kaweir@deloitte.com

Copyright © 2018 Deloitte Development LLC. All rights reserved. 5

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of
member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of
the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a
globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service
to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000
professionals, all committed to becoming the standard of excellence.

This publication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and
their related entities (collectively, the “Deloitte Network“). None of the Deloitte Network shall be responsible for any loss whatsoever
sustained by any person who relies on this publication.

© 2018. For information, contact Deloitte Touche Tohmatsu Limited.