Retail Industry Global Report — 2010 - Ascendant Capital Advisors

An IMAP
RETAIL
Report
Retail Industry Global
Report — 2010

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Contents
R E T A I L I N D U S T R Y G L O B A L R E P O R T — 2 0 1 0
2010 witnesses contraction in retail M&A activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Change in consumer preference fuels online retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Convenience, value and selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Increase in global online population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Localization strategy supports online retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Transformation in online retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Smart shopping and smart-store theme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Multi-channel retail emerging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Web influence on total retail sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Financial analytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Cross-border online purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Social media takes retailers to social networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Quick growth through globalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Major hurdles to globalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
HOT
Investment opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Mobile Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Online grocery shopping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Online healthcare. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Future outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Statistical reference (Appendices)
Appendix A: Global overview of retail and online retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-i
Appendix B: Summary of M&A transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-i
Appendix C: Growth drivers of online retail industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-i
Appendix D: Niche focus areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-i
IMAP’s Retail Industry Global Report 2010: Page 1
An IMAP
RETAIL
Report
IMAP, Inc. is a Delaware corporation. Its regional firms are independently operating in various jurisdictions under a variety of legal forms of organization. References to IMAP transactions, offices,
locations and other similar associations should not imply any form of IMAP ownership or agency over the local firms or cause any liability between the local firms and IMAP whatsoever.

2010 witnesses contraction
in retail M&A activity
There were 1,409 transactions valued at $17.1 billion USD in the
last twelve months (ended September 2010) for the retail sector,
representing a downside of 33.6 percent in terms of transaction
value ($25.7 billion USD during the previous 12-month period
with 1,473 deals). Dollar volume in this period included two major
transactions (Kohlberg Kravis Roberts/Pets at Home and Lotte
Shopping Co/GS Square and GS Mart), which represented $2.7
billion USD or nearly 15.8 percent of total dollar volume. During
the previous period, the largest transaction was the acquisition
of Next Rx LLC by Express Scripts for $3.5 billion USD.
In terms of business segments, specialty and distributors
accounted for the highest in terms of value at nearly 56 percent
of total dollar volume for the period.
In terms of geography, the United Kingdom had the highest
transaction value of $3.9 billion USD with a total of 161
transactions over the last 12 months. The United States came in
second with a value of $3.4 billion USD through 370 transactions.
Among other regions, Europe was the clear leader at $7.3 billion
USD with 688 transactions.
Going forward, large grocers and mass merchants will start
looking to invest in emerging markets, especially in the BRIC 1
region, where valuations are low. Also, the retail sector is highly
fragmented; hence, consolidation through inorganic growth by
foreign players will drive the M&A segment. Albeit, considering
the dim retail industry outlook, retail companies will continue to
find it hard to raise the funds to finance transactions.
1 Brazil, Russia, India and China countries
M&A Activities at a Glance
2010 V. 2009
IMAP’s Retail Industry Global Report — 2010: Page 2
LTM ended
3Q 2009
LTM ended
3Q 2010
Transaction value (USD billion) 25.7 17.1
Top 5 transactions 32.4% 27.3%
Segment Analysis
Segment No. of transactions Value (USD bn)
Specialty Stores 299 5.1
Distributors 692 4.5
Department Stores 50 2.4
General Merchandise Stores 28 1.6
Home Furnishing Retail 38 1.1
Internet Retail 124 0.8
Top 5 regions No. of transactions Value (USD bn)
Europe 688 7.3
North America 412 4.1
Asia Pacific 245 4.1
Latin America 36 1.4
Middle East 13 0.2
Top 5 countries No. of transactions Value (USD mn)
United Kingdom 161 3.9
United States 370 3.4
South Korea 3 1.2
France 87 1.1
China 66 0.9
Source: Capital IQ Database, IMAP

Global recession hit retail hard
The recessionary period has been a chaotic period for the
global retail industry. Factors which affect retail sales such as
people’s purchasing ability (disposable income) and willingness
to spend (consumer confidence) were at rock bottom during
this period. Eventually, global retail sales declined 3.7 percent
in 2009 to $13.9 trillion USD 1 . While sales for 2009 were low,
it is worth noting that sales of the global retail industry have
doubled since 2003. Along with sales decline, profitability for
most retailers shrunk due to heavy promotional expenses
incurred in 2009. Profitability of the 200 largest retailers in the
world fell to 2.4–4.1 percent during fiscal ended 2009, wherein
1 Economist Intelligence Unit (EIU)
IMAP’s Retail Industry Global Report 2010: Page 3
more than 30 retailers reported operating losses 2 . This trend
affected almost every retail category and geographical area
except Africa and the Middle East where retailers reported an
increase in profitability.
With the worst behind, 2010 began with guarded optimism
following signs of a recovery in the global retail sector during
the second half of 2009. It is certain that a recovery is on
the way; however, the worst-ever recession has changed the
industry’s dynamics with the changing nature of consumers and
their shopping habits.
2 Bloomberg
Change in consumer preference fuels online retail
Even as sales through traditional channels declined, online
retail formats provided some respite for retailers as global
online retail sales grew by 14.5 percent in 2009 to reach $348.6
billion USD 1 . Electronics was the largest segment in global
online retail sales, contributing around 22.6 percent. While
the online retail sales sector continues to outperform, its
magnitude remains small with 2.5 percent of total global retail
sales. On an average basis, globally, online sales account for 6.6
percent of total sales for the top 100 retailers in 2009 2 .
The US remains the biggest market for online retail with 37.2
percent market share. Total spending reached $129.8 billion
USD in 2009 3 , marginally lower than $130.1 billion USD in 2008.
A high level of product differentiation together with low fixed
costs and dynamic market revenue growth is seen in the US
market. However, it also creates competition in the market
with a large number of active players and the absence of
consumer switching costs.
The online channel is outperforming wider retail as it has a
number of counter-recessionary characteristics. The online
channel offers considerable benefits to retailers. Relatively
low operating costs (compared to an equivalent store network)
1 Data monitor, July 2010. The online retail market consists of the total revenues generated
through the sale of retail goods via online channels, valued at retail selling price.
2 Forrester Research, January 2010
3 The US Department of Commerce
Businesses such as Dwell Retail in the UK have
experienced dramatic growth in the largely
traditional home furnishing sector, as a result of
their multi-channel offer to consumers attracted
by the ability to ‘try in store – buy online’ large
item furniture with next day and timed delivery.
Marc Gillespie, Head of IMAP’s Retail Industry Group,
IMAP UK (Clearwater Corporate Finance)
Traditional vs. Online Retail Industry Growth
25%
20%
15%
10%
5%
0%
-5%
22.7% 22.1%
7.2%
10.9%
9.4%
12.4%
14.5%
2006 2007 2008 2009
allows them to pass benefits to customers in terms of low cost,
and can be operated 24x7. The rise in Internet penetration and
a change in view of consumer mindsets is happening as more
consumers feel more comfortable purchasing and using their
credit cards online.
In summary, the Internet has evolved into an important retail
channel. An increase in tech-savvy consumers, an increase in
Internet access and growing confidence in payment security
and privacy have advanced this retail channel.
Convenience, value and selection —
major catalyst for online channel uptake
The online retail channel has consistently outperformed
because most consumers are valuing low and transparent
prices, convenience, and comprehensive assortment of goods
and services. As per the survey 4 conducted in North America
which is the largest market for online retail, 67 percent of
online buyers find the products online that they cannot find
in stores easily; 65 percent of US-based Web buyers buy the
products online as they save time by shopping online; and 63
percent of Web buyers find better deals online.
4 North American Technographics Retail Online Survey, Q3 2009
-3.7%
Traditional
Retail Growth
Online Retail
Growth
Source: EIU, Datamonitor, IMAP

Increase in global online population
promotes online retail spending
Between 2005 and 2009, the global Internet population
increased from 1 billion to more than 1.6 billion and by 2014 it is
projected to grow by another 42 percent, reaching a level of 2.3
billion 1 .
Most of the growth in online population is expected to come
from the Asia Pacific, Middle East and Africa, which had very
low Internet penetration levels of 19.7 percent as of June 2010.
These regions will represent 54.9 percent of the online population
in 2014, whereas North America and Europe will represent
34.1 percent. Other emerging Asian countries such as Vietnam
and Indonesia are expected to have nearly 10 percent of global
online users by 2014, but Apple is the only online retailer in the
US which operates a transactional Web site for these countries.
Global Online Population
Region 2009 2010 2012E
North America 259 266 292
Europe 415 475 500
Asia Pacific 645 846 1,033
Latin America and Caribbean 178 204 255
Middle East and Africa 135 173 241
Total 1,632 1,964 2,321
Source: Forrester Research Inc. and Internetworldstats.com, June 2010
While Internet penetration growth does not show a direct
relationship with online retail market growth, online retail
market dynamics will change as the global Internet penetration
changes, boosting international expansion for most retailers.
Also, the level of adoption of online shopping does not
always reflect the level of online spending. For example,
North America has one of the highest online spending rates
per person, while the overall penetration of online buyers is
relatively low compared with other markets. Along similar
lines, Asian e-commerce giants such as Japan and South Korea
are climbing the levels in online spending because of improved
access through technology and wider selection of online
stores. Altogether, the market potential is huge with increasing
Internet penetration levels.
Along with penetration, localization
strategy also supports online retail
Traditionally, there was a tendency among online retailers in
terms of not changing content according to local requirements
and languages. This strategy had its disadvantages in terms
of repelling customers who were not comfortable with the
English language and standard layout across the globe. It
catered largely to English-speaking markets. Today, however,
online retailers are adopting the strategy of "localization",
1 Forrester Research, September 2010
i.e. Web sites with local languages along with regional
customs — even if with a small amount of content at first.
These retailers are better equipped to take the advantage
of an increasingly diverse global online user base than their
counterparts with English-only Web sites.
It is worth noting that there is a strong preference for locallanguage
content in European markets such as France, while
more than 95 percent of online users indicate a preference
for local-language content in Asian markets such as Japan and
Korea 2 . Even though localization strategy is being adopted by
the global retailers, a lot still needs to be done. For example,
while 5 percent of the global population speaks Arabic, just 1
percent of online content is estimated to be available in the
language.
Similar to local language preference, customer behavior and
expectations also vary across countries. More customized
online strategy is required for the regions such as the
Middle East or Latin America. Indeed, companies have
started operating localization initiatives such as IP mapping
techniques to localize prices, directing customers to local
stores with products on display in the local language and
having a local office in the country. Strategies of localizing
content and understanding online customer behavior and
preference are likely to boost online sales.
With all these inhibitors, in the long run, the keen interest in
the Web in the post-recession economy and the growth spurt
in Web-related technology will continue to drive the growth
of the online retail segment, subject to the online business
innovations by e-retailers. With its clear price advantage over
the bricks-and-mortar channel, online retail will become more
attractive to recession-hit shoppers. By 2014, global online
retail sales are expected to be $778.6 billion USD 3 , increasing
at a CAGR of 22.2 percent. The major regions such as US and
Western Europe are forecast to reach $248.7 billion USD and
$158.5 billion USD by 2014, respectively 4 .
2 Asia Pacific Technographics Survey, Q4 2009
3 Data monitor, July 2010
4 Forrester Research, March 2010
IMAP’s Retail Industry Global Report — 2010: Page 4

Transformation in online retail
Post recession, online retail industry has undergone a
fundamental shift in the way it performs and operates.
Developments such as smart shopping and smart store, multichannel
retail, financial analytics in e-commerce, cross-border
online purchases, influence of social media on retailers and
globalization in non-US markets have all changed online retail.
New Developments in E-commerce
Social Computing
Globalization Multiple Devices
Multiple Business Models User-generated Content
Multiple Channels
Enterprise Integration
Today’s
E-commerce
Solutions
More & Rich Content
Personalization
Product Discovery Saas Point Solutions
RIAs Data, More Data
Optimization
Post recession, consumers believe in smart
shopping and smart-store theme
Since the recession, consumers have changed their buying
habits dramatically. According to a survey on US consumers 1 ,
76 percent have changed their spending style due to the
recession and 43 percent report that their spending style will
remain unchanged post recession. Customers are making
informed purchasing decisions, keeping retailers on their
toes to provide enhanced shopping facilities and precise
information. As a matter of process, customers collect
all sufficient information about product features, prices,
warranties, availability and environmental impact and then
compare these with competitors’ products, before purchasing.
More time is spent researching on the internet about the
products they wish to purchase.
To boost sales and enhance customer satisfaction, retailers
are coming up with innovative techniques—revamping stores,
establishing new retail formats and adopting online and social
media to promote/sell products. To address this, Banana
Republic opened a concept store in 2009. Further, Marsh’s
efforts to revamp its store formats over the past two years is
a significant move away from the chain’s traditional approach,
where all stores sported similar layouts and displayed the
same basic product mix. Using psychographic, demographic
and transactional data, Marsh teams adjusted foot traffic
patterns to give shoppers more options on how to navigate the
stores. With this, most categories saw 7-10 percent growth.
Retailers are also becoming more technologically
sophisticated with in-house (possible competitive advantage)
and outsourced (lower price) solutions. Some retailers are
1 Survey conducted by comScore, July 2010
Source: IEA and IPCC, IMAP
IMAP’s Retail Industry Global Report 2010: Page 5
also tapping into emerging technologies such as radio
frequency identification (RFID) tags and virtual shopping,
in which consumers "shop" in a simulated store online and
record displays that capture their attention. The combination
of traditional and emerging research approaches is giving
companies a better perspective of shoppers’ behavior.
Multi-channel retail emerging — bricks, clicks
and catalogs are creating synergies
Along with the smart-store concept, on the retail format front,
most retailers have started adopting multi-format strategies,
i.e., along with traditional retail stores, establishing online
stores, catalogs, mobile stores and convenience stores to gain
a competitive edge and expand their customer base.
With slowing demand, retailers are inevitably finding
themselves having to compete much harder against their rivals
to achieve previously accustomed levels of growth. With the
market maturing and customer penetration level saturating,
targeting the right customer becomes essential. Also, new
players such as Gap, Zara and H&M in the market will further
increase the competition. At present, multi-channel retailers
are outperforming their pure-play rivals, as they are able to
provide greater convenience through services such as "click &
collect" along with strong brand affiliation.
Multi-channel Retail Strategy
Catalog Store
Online Mobile
Another factor that is promoting multi-channel retailing is consumer
tendencies to mix channels during their purchasing drive
with a very particular way of choosing the product they want,
where they want it, how they want it and with a variety of delivery
options. According to a consumer survey 2 , 78 percent of respondents
in the US have used two or more retailing channels
and 30 percent have used three or more channels to research
and then finally make their purchases. Thus, the demand for an
excellent customer experience across channels is compelling
retailers to integrate their multi-channel operations.
Retailers need to work on preventing a fragmented shopping
experience and allow shoppers to both research and
2 Survey by commerce solution provider ATG, December 2009
Browse Buy
Buy Return
Source: Ovum Research, IMAP

uy across all channels. Retailers have started implementing
multi-channel strategies — such as alternative delivery
options, integrated customer service, and aligned marketing
efforts — that facilitate both researching and buying across
channels. In May 2010, Marks & Spencer announced the
launch of a new version of its Web site, designed to be easily
accessible from mobile devices. This allows customers to
conveniently browse and buy items by using their mobile
devices. Similarly, Kroger, Safeway and ShopRite are sending
"smart electronic shopping coupons" to their customers
through wireless devices, televisions and computers. This
option lets customers use these coupons to get discounts on
their product purchases without going through the trouble of
clipping and collecting paper coupons while helping retailers
increase their distribution. Tesco, whose online retail sales
during the year ending February 2010 grew 7.3 percent annually,
set up a consultancy named Task Retail, which will advise Tesco
on its online clothing strategy.
The Web will influence more than half of
total retail sales by 2014 in the US
Online product research is not only driving online sales but
also land-store sales. In 2009, store sales influenced by
online research totaled $917 billion USD in the US 1 while retail
e-commerce sales were $155 billion USD. It means for every
one US dollar in online sales, the internet influenced $5.91
USD of store sales. A majority of consumers are using online
channels — comparing sites to find bargains. Post recession,
consumers have become quite cautious spenders. They do
extensive research online before closing the deal. Apart from
US, European consumers are also mixing online and offline
channels during their multi-channel purchasing decision.
Going forward, online and Web-influenced offline retail sales
will grow at a 9 percent CAGR over the next five years 2 , as
consumers increasingly use the Internet to research products
before purchasing.
In brief, any retailer who is not using the online channel to
promote offline sales — as well as online sales — is missing
out on opportunities in today’s multi-channel scenario.
Financial analytics — becoming integral
part of operational strategy 3
The e-commerce industry has matured quite rapidly — in the
time span of a decade. In the developed world, almost every
company has an online retail store, hence, merely establishing
Web presence does not lead to success in the business. With
the maturity of the e-commerce market, customers are
now demanding a more comprehensive look at online retail
offerings with cost benefit vis-à-vis the competitors.
Traditional marketing methods are no longer viable for a
variety of reasons, including the fact that regulated
1 eMarketer
2 Forrester Research
3 http://www.ecommercetimes.com
monopolies are now few and far between. The Internet has
eliminated many of the traditional geographical barriers
companies have employed to fend off competitors. Now firms
can market their goods and services worldwide. In addition,
in developed countries such as the US and UK, the number
of potential new customers is shrinking because most large
companies have deeply penetrated into their prospect bases.
IMAP’s Retail Industry Global Report — 2010: Page 6
Today, companies have to search for innovative ways to
determine how each e-commerce business process impacts
the bottom line. Financial analytics tools offer retailers
the opportunity to more closely examine their assets and
liabilities. These analytic tools that help in performing robust
analysis of retail business, covering various areas from product
design to marketing to customer care services, have become
more important. Unlike the traditional practice of focusing on
quality and quantity of goods and services, retailers now are
required to do a better job of analyzing their business in order
to beat the competition.
This will give rise to new customer-driven metrics and new
metrics designed to improve the shopper journey and point-ofpurchase
experience.
Cross-border online purchases are booming
In today’s cutting-edge scenario, consumers are buying crossborder
for various reasons, such as price, quality and unique
product selection through international sites. Apart from these
key reasons, localization of Web sites also favors cross border
purchases.
Most cross-border consumers claim they get deals on
products from overseas retailers even when shipping costs
are considered. Manufacturers selling directly to consumers
tend to be conscious of price differences on products in the
countries in which they operate. As per one of the surveys
conducted in early 2010 4 , nearly one-third of European online
buyers made Web purchases outside of their home country.
On a similar note, in the US, more than one-quarter bought
items from online retailers based outside of the US and among
consumers aged 18–24, up to one-third of consumers bought
from non-US sites 5 .
Also, from the online retailers’ point of view, these crossborder
buyers are desirable consumers because they show
high online buying tenure, have high levels of disposable
income, and outspend other online buyers.
Going forward, retailers will continue to add international or
cross-border options in their offerings for consumers, such
as adding translated content to sites to attract international
buyers. Fruugo, a shopping Web site, has started using machine
translation to enable cross-border commerce. Additionally,
Urban Outfitters from UK has added separate French- and
German-language pages that explain how to order from its site.
4 Forrester Research Survey
5 Forrester Research

Social media takes retailers to social
networks — customer-generated content,
blogs and wikis are influencing purchases
The rapid adoption and evolution of social media networking
sites such as Facebook and Twitter has become so important
in terms of influence on consumer behavior and purchasing
habits that the retail industry needs to pay attention. Globally,
unique visitors to social networking sites have increased 27
percent to 307 million in 2009 from the 2008 level and the
average time spent on social media was more than 5.5 hours
per month in December 2009, a year-over-year increase of
82 percent 1 . Moreover, from the product review point of view,
19 percent of Europeans with Internet access read customer
reviews and ratings at least monthly, and 46 percent of
European Internet users agree that customer ratings and
reviews help them to decide whether or not to purchase a
product or service 2 . Therefore, it is essential for retailers to
adopt social media marketing practices.
Though the concept of social media started gaining momentum
in 2009, most retailers avoided or cautiously considered it
causing it to remain in a testing phase. However, with the initial
signs of an economic recovery and the increases in advertising
budgets, investment in social media has increased in 2010.
Following successful campaigns through social media, retailers
are using social media as a core advertising tool. Shopping sites
have increasingly used social media to promote their wares.
More than half of retailers had added or improved their
Facebook and Twitter pages and nearly two-thirds of retailers
had added or enhanced blogs and RSS feeds. Luxury brand
Gucci has a Facebook fan following on its official page, which it
updates regularly by introducing new photos and videos.
1 Nielsen Research, January 2010
2 Western Europe Technographics® Survey, Q1 2010
Emergence of Social Media in Retailing
IMAP’s Retail Industry Global Report 2010: Page 7
Types of Consumer-Generated Media
Ratings &
Review Sites
Feedback
Portals
Usenet
Newsgroups
Early-Stage Internet
Discussion
Forums
Micro-
Community
Sites
Groups
Consumer
Blogs
Media
Blogs
Co-Creation
Marketer
Blogs
Video
Audio
Blogs
Social
Networks
Video
Blogs
Twitter
Mobile
Blogs
Today
Source: Nielsen Research, IMAP
Greeting-card maker Hallmark Cards added a shopping tab
on its Facebook page after realizing that its customers are
spending more time on Facebook than on Hallmark.com. In
this way, Hallmark was able to promote the idea and ability to
personalize and buy a real physical card without ever leaving
Facebook.
Domino’s Pizza announced in December 2009 that it would
use Facebook, Twitter and other social media to promote its
revamped pizza pie. The company decided to produce this new
pizza offering after analyzing the feedback from its customers
coming in through various social media.
In January 2010, Dunkin Donuts launched a marketing campaign
to promote donuts and related products, called Twitter
Games, on Twitter. The participants were required to "tweet"
information such as how they liked their coffee, in order to win
gifts from the retailer.

Retailers are looking for quick growth through
globalization via non-US markets
Slow growth, heavy discounting, restrictive legislation and
more erratic shopping in recession-weary developed markets
have made retailers think about international expansion into
non-US markets. Retail executives are learning that core
markets such as US and Europe are not the powerful engines
they once were. Today, relying on developing countries is not
only desirable but also mandatory for survival. According to a
recent survey of retail executives 1 , the BRIC region remains the
highest priority markets for retail expansion, with nearly 80
percent of respondents citing one of these markets as part of
their firms’ plans for short-term international growth.
Along with developed market players, 92 percent of respondents
from emerging markets are looking to expand beyond
their home market. These emerging market retailers are using
their unique insights into local business and culture to expand
regionally; a trend that will impact the global retail landscape.
In addition, retailers are looking for a shorter payback period
of three years (compared to five to seven years in 2005).
For expansion, acquisition activities have been mostly in nonfood.
Since market concentration has reached a high level,
retailers have chosen to expand abroad through partnerships using
a franchise model due to government regulations. To support
international retailers, local partners’ business models are made
such that they can franchise international brands across the region.
While retailers are spreading their footprint internationally,
they are not selling goods in the same retail formats as those in
their home markets, except hypermarkets and cash and carry.
Usually, customers are not open to changing their buying styles
and patterns and do not always react well to new concepts.
Retailers need to set up channels in line with the consumer
mindset with clear segmentation and localization. The real
growth will come by operating multiple formats and multiple
concepts, targeted to specific customer segments, in specific
local markets, for specific end-use needs and occasions, while
operating in specific shopping modes. Retailers will need to
combine global market savvy and sourcing with local market
delivery and know-how.
1 As part of 2010 Global Retail Development Index, A.T. Kearney surveyed 60 retail
executives from around the world to identify emerging competitive trends and confirm
the GRDI rankings.
Major hurdles to globalization of online retail
IMAP’s Retail Industry Global Report — 2010: Page 8
Online retailers are entering into global markets without
physical infrastructure, and related expenses along with
corresponding risk. However, retailers must ensure their
e-commerce and regulatory platforms can effectively deal with
cross-border sales.
Local laws and regulations
Each country has its own import and export laws. While doing
cross-border transactions, retailers need to understand
the dynamics of shipment from a legal point of view. Apart
from the list of commonly prohibited items such as currency,
livestock and hazardous materials, each country has its own
list of goods and services that are forbidden.
Examples of Legal Restrictions
Country List of Items Prohibited
Argentina
Australia
Furs, radios, televisions, phonographs and
ready-made clothes
Goods produced wholly or partly in prisons or by
convict labor
Brazil Canes and umbrellas
China
Walkie-talkies, wrist watches, cameras, bicycles
and sewing machines
Fiji Dyes and coloring materials
Iran
Musical instruments, games involving dice or
brown sugar
Peru Gloves, household linens or wooden utensils
Source: US Postal Service, IMAP
The above mentioned list is indicative of the complexity of
cross-border trade. Hence, retailers need to undergo a hardhitting
test before setting up business in a new territory.
Even duties and taxes create hassles
Retailers are required to understand various taxes and
duties that are levied across states within a country. These
regulations increase in international trade and services and
global retailers need to understand the appropriate rates for
taxes and duties by country, then calculate, collect, remit and
manage these funds. Hence, retailers are required to maintain
the discipline across the organization for trade.

HOT
Investment Opportunities
Change in consumer behavior and demand-supply dynamics
(due to recessionary blues) has spawned mobile commerce,
online grocery stores and online health care.
Mobile Commerce (M-Commerce) 1
M-commerce began in the last decade, and similar to mobile
banking, has expanded very little. Despite the massive numbers
of mobile users in the US and UK, those who use their phones
to make purchases remains few. Tepid demand among consumers,
technological limitations and lack of standardization in
application has constrained the widespread proliferation of
m-commerce.
While m-commerce is still immature, retailers are showing interest
in this customer service channel with the idea of enhancing
the experience by allowing greater interaction between
the consumer and retailer. Exploiting mobile technology will
enable retailers to become more service-oriented, create more
personalized relationships and get better at meeting customer
needs. As per a study by the National Retail Federation in the
US, 74 percent of online retailers either have in place or are developing
mobile commerce strategies (20 percent have already
implemented their complete plans).
A number of recognized retail brands have launched m-commerce
programs. For m-commerce, eBay is the clear leader
with their iPhone application launched in 2008, and Blackberry
and Android applications that were launched in 2009 and 2010.
In 2009, the company experienced more than $600 million
USD in goods sold via the mobile application — a 200 percent
increase from 2008. On new start-ups, MLB, the Philadelphia
Phillies and Aramark began allowing consumers to use their
iPhones to order food. Sears has effectively used mobile for
customer service by sending text alerts to confirm that a Web
order is ready for in-store pickup.
M-commerce revenues are still small in most markets, but
2010 will be the first meaningful year for this channel. By 2015,
shoppers around the world will spend about $119 billion USD on
goods and services bought via their mobile phones 2 . In the US
alone, mobile shopping rose from $396 million USD in 2008 to
$1.2 billion USD in 2009, and is forecasted to reach about $2.2
billion USD in 2010.
1 M-commerce is the buying and selling of goods and services through wireless
handheld devices such as cellular telephones and personal digital assistants (PDAs).
Known as next-generation e-commerce, m-commerce enables users to access the
Internet without needing to find a place to plug in.
2 Study by ABI Research
Online grocery shopping
IMAP’s Retail Industry Global Report 2010: Page 9
Online grocery shopping has continued to experience a rapid
evolution in recent years, facilitated by the ongoing development
of the Internet and related technologies. From a
consumer perspective, the convenience factor of placing an
order online and having goods delivered to the door is perhaps
the biggest appeal to consumers looking for ways to save time
or have physical difficulty carrying products.
The UK is the most developed online grocery market, with 15
percent of adults having shopped for their groceries online in
2009. The UK market grew at a CAGR of 24.9 percent during
the period of 2004 to 2009, reaching a level of $7.8 billion USD
in 2009 and is expected to reach $11.8 billion USD by 2014 3 .
Another major market is the US, which is catching up with online
grocery shopping habits. With its vast online population, the US
tops the online grocery shopping arena with a total market size
of $9.1 billion USD in 2009. However, the per capita spending is
still less for US consumers when compared to the UK market.
One key difference with grocery products is freshness: many
consumers still prefer to see the produce before purchase, which
remains a significant hurdle for the development of the online
market. Furthermore, the time lag between placing the order and
delivery means that online grocery purchasing only fits with regular,
planned shopping rather than impulse or top-up shopping.
Online healthcare
Nowadays, healthcare consumers gather information online
which includes healthcare-related information and services,
looking for doctors, researching medicines, sharing personal
health details and tracking health conditions for themselves.
While consumers are becoming more self-reliant and empowered,
healthcare providers are beginning to offer their services
online and learning how to become more consumer-focused.
Given this evolution, online healthcare marketers in the US
have the opportunity to build a bridge between healthcare
providers and patients. It is estimated that the market for
electronic health records will reach about $5 billion USD by
2015, according to Kalorama Information. To capture this
vast potential, Google and Wal-Mart have together invested
significantly in online healthcare services.
3 Datamonitor Research

Future Outlook
Even though retail sales exhibited signs of recovery towards
the beginning of 2010, there is skepticism regarding the retail
outlook for the developed economies. Western Europe will
remain depressed, restrained by markets such as Ireland,
Spain and the UK, which continue to face problems such as high
government borrowing, household debt and unemployment.
North America is expected to witness a slight improvement but
growth will be subdued because of more jobless claims. Multistore
chains continue to respond to recessed retail consumption
with store closings. The number of retail store closures
in 2010 so far appears to be lower compared to that in 2009.
However, it is still significant. Despite this, global retail sales
growth is expected to be 7.3 percent in 2010, before slowing to
5.8 percent in 2011 and then rising again to 7.4 percent in 2012.
In terms of volume growth, the global retail market is expected
to return to comparable pre-2008 levels only by 2011 1 .
To survive in these tough times, retailers must increasingly
look to enhance their multi-channel retailing capabilities, as
customers are tending to purchase more and more through
multiple channels.
The best performers in the retail industry will be those that
optimally combine the brick-and-mortar experience with the
electronic retailing experience, keeping in mind the interest
of the customer. Given the pessimism prevailing in the retail
segment, non-store and online sales will likely remain strong as
1 EIU
buyers will continue to buy online to obtain lower prices.
Off-mall value specialty stores and small-ticket discretionary
categories may see a return to profitability and growth.
It is expected that in the next couple of years online sales will
be shipped directly from the manufacturer to the consumer on
a just-in-time basis. Internet retailing through mobile devices
offers a huge opportunity for growth, as growth in traditional
online retail matures. This can be primarily attributed to the
expected global growth in mobile Internet usage.
Whatever the future holds, the Internet will continue to break
down barriers to create a level playing field for companies,
countries and individuals around the world.
Global Retail Sales
Retail Sales
(USD billion)
Retail
Growth Rate
Online Sales
(USD billion)
Online
Growth Rate
IMAP’s Retail Industry Global Report — 2010: Page 10
2005 2006 2007 2008 2009
11,100 11,900 13,200 14,500 13,900
– 7.2% 10.9% 9.8% -4.1%
181 222 271 304 349
– 22.7% 22.1% 12.4% 14.5%
Source: EIU, August 2010

Appendix A: Global overview of retail and online retail
Value chain of the retail market
• The retail industry is composed of individuals and
companies engaged in the sale of finished products
to end-user consumers. It implies that retailing is
the final step in the distribution of merchandise—the
last point in the supply chain—connecting the bulk
producers of commodities to the final consumers,
Retailing covers diverse products such as food,
apparels, consumer goods, financial services,
leisure, etc.
• Considering the nature of the business, retailing is
extremely competitive and the failure rate of retail
establishments is relatively high. While price is
the most important arena of competition, other factors such as
location, selection and display of merchandise, attractiveness of
the establishment and reputation also matter.
• Retail is usually classified by the type of products as follows:
- Food products
- Soft goods: clothing, apparel and other fabrics
- Hard goods (hardline retailers): appliances, electronics,
furniture, sporting goods, etc.
• Traditionally, the retail business was dominated by smaller familyrun
or regionally targeted stores, but this market is increasingly
being taken over by multinational conglomerates such as Wal-
Mart and Sears, indicating the era of “retail globalization.”
Major formats of in-store retailers
These larger retailers have managed to set up huge supply/
distribution chains, inventory management systems, financing pacts
and wide-scale marketing plans. This dynamic nature of the retail
business has created different business models and a wide range of
new formats such as vending machines, door-to-door and telephone
sales, direct-mail marketing, online retailing 1 , and traditional formats
such as discount houses, specialty stores, department stores,
supermarkets, and consumer cooperatives. This has led to the
emergence of multichannel retailing, which refers to the concept of
selling goods through multiple channels rather than just one, such
as traditional stores.
1 Online retailing is a type of electronic commerce used for business-to-consumer (B2C)
transactions and mail order.
Format Description Value Proposition
Branded Stores
Specialty Stores (Multi-brand)
Department Stores
Exclusive showrooms either owned or franchised by a
manufacturer
Focus on a specific consumer need, carry most of the brands
available
Large stores having a wide variety of products; organized into
different departments, such as clothing, house-wares and toys
IMAP’s Retail Industry Global Report — 2010: Appendix A-i
Complete range available for a given brand,
certified product quality
Greater choice to the consumer, comparison
between brands possible
One-stop shop catering to varied consumer needs
Supermarkets Extremely large self-service retail outlets One-stop shop catering to varied consumer needs
Discount Stores
Hyper-marts
Stores offering discounts on the retail price by selling high
volumes and through economies of scale
Larger than a supermarket, sometimes with a warehouse
appearance; generally located in quieter parts of the city
Low prices
Low prices, vast choice available including services
as cafeterias
Convenience Stores Small self-service formats located in crowded urban areas Convenient location and extended operating hours
Shopping Malls
Major formats of non-store retailers *
An enclosure having different formats of in-store retailers all
under one roof
Format Description Value Proposition
Direct Response Television
(DRTV) Advertising Including
Infomercials
Catalog Sales/
Online Catalog Sales
Vending Machines
E-commerce
Multi-level Marketing
Retail Value Chain
Marketed directly over television, with prominent display of a
toll-free number and/or internet address, asking the consumer
to take specific action leading to or making a product sale
Customers select products from catalogs and fill out an
order form. The order is brought to the sales executive, who
completes the order through the warehouse
Chewing gum to hot meals have been sold through these
machines and have become an integral part of contemporary
consumption
Buying and selling of products or services over electronic
systems such as the Internet and other computer networks
Products and company are marketed directly to consumers
and potential business partners by means of relationship
referrals and word-of-mouth marketing
Variety of shops available close to each other
Rapidly and cost-effectively introduce a new
product or revive an under-marketed product
Lower prices than other retailers and lower
overhead expenses due to the smaller size of the
store
No human efforts required; vending machines are
beneficial for low-cost consumables
Increases consumers’ ability to gather information
about products and prices
Cost of logistics is low
Source: Image taken from Microsoft website
* Those engaged in the sale of products using marketing methods which do not include a physical location

Global Overview of Retail Sector
• Global retail sales declined 3.7 percent in 2009 to 13.9 trillion
USD 1 . While sales for 2009 were low, it is worthwhile to note that
sales of the global retail industry have doubled since 2003 when
worldwide retail sales were $7 trillion USD.
• Along with sales growth, profitability for most retailers was also
sharply affected. Profit margins of the 200 largest retailers in the
world fell to 2.4 percent from 4.1 percent during fiscal 2008-09
with more than 30 retailers reporting operating losses 2 . This
trend affected almost every retail category and geographical area
except Africa and the Middle East where retailers saw an increase
in profitability.
• The composition of the top 10 retailers in the world remained
the same in 2009 compared to the previous year. This group
now accounts for more than 30 percent of total retail sales of the
top 250 retailers. Wal-Mart remained the world’s largest retailer,
ahead of Carrefour Group.
• In major markets such as the US and UK, retail spending is
expected to decline, while emerging markets such as China
and India should have strong growth in 2010. There are signs
of improvement for US consumers, but the recent destruction of
wealth is expected to limit consumer spending. Asia is believed to
represent the best growth prospects for retailers and consumerproduct
companies in 2010.
Retail globalization
• Among developed countries, the UK continues to lead the world
as the most international retail market. Europe maintains its
ability to attract the world’s top retailers in 2009, with 58% of
the world’s top 250 retailers having a presence in Europe. The
UK outperformed other major European economies such as
Spain, France, Germany and Italy, ranking first among the top
15 most international retail markets. European retailers are more
prone to globalization than American retailers because they face
restrictions on development in their home markets. In France,
due to regulations, hypermarkets cannot open new stores in
their home market easily. Consequently, they principally seek
growth in other markets. This is why the lion’s share of global
retailers is based in Europe. The US was 10th globally, with 39%
of international retailers. This can be attributed, at least in part, to
the size, maturity and strength of its domestic market. US retailers
tend to penetrate their vast national market extensively before
considering international expansion. Although Europe continues
to dominate, with eight out of the top 15 most international retail
locations, emerging economies such as China, Russia and the
UAE have gained significant ground in the past 12 months.
• According to a recent survey of 60 retail executives from around
the world 3 , the BRIC 4 region remains the highest priority markets
for retail expansion, with nearly 80 percent of respondents citing
one of these markets as part of their firm’s plans for short-term
international growth. Along with developed market players,
emerging market-based local retailers have begun expanding
outside their region. In a similar survey, 92 percent of respondents
from emerging markets are looking to expand beyond their home
market, with close to 30 percent of those saying a developed
country is among their top three expansion targets. These
emerging market retailers are using their unique insights into
local business and culture to expand regionally in a trend that
will impact the global retail landscape. In addition, retailers are
looking for a shorter payback period of three years, compared to
five to seven years in 2005.
1 Economist Intelligence Unit (EIU)
2 Bloomberg
3 As part of 2010 Global Retail Development Index, A.T. Kearney surveyed 60 retail
executives from around the world to identify emerging competitive trends and confirm the
GRDI rankings.
4 Brazil, Russia, India and China countries
• Despite the global economic slowdown, many retailers such as
cash-rich private companies have continued their expansion plans
throughout the past 12 months. A survey of 280 retailers 5 saw
them expand their international presence by two more countries
than in the previous year. This was primarily in clothing, footwear
and accessories.
Multi-channel retailing
• According to a consumer survey 6 , 78 percent of respondents in
the US used two or more retailing channels and 30 percent used
three or more channels to research and then finally make their
purchases. Similarly, in Europe, the population purchasing online
increased from 32 percent in 2008 to 37 percent in 2009 7 .
• To grab the benefits of multi-channel retailing, players are
enhancing their capabilities.
- For example, in May 2010, Marks & Spencer announced the
launch of a new version of its Web site, designed to be easily
accessible from mobile devices. This will allow customers
to conveniently browse and buy items by using their mobile
devices.
- Similarly, Kroger, Safeway and ShopRite are sending “smart
electronic shopping coupons” to their customers through
wireless devices, television and computers. This option lets
customers use these coupons to get discounts on their product
purchases without going through the trouble of clipping and
collecting paper coupons while helping retailers increase their
distribution.
- Tesco, whose online retail sales during the year ending
February 2010 grew 7.3 percent annually, has set up a
consultancy named Task Retail, which will advise Tesco on its
online clothing strategy.
Rise of online retailing
• Global online retail sales grew by 14.5 percent in 2009 to reach
348.6 billion USD 8 . Electronics is the largest segment in global
online retail sales, contributing around 22.6 percent.
• The US is the biggest market for online retail sales with 37.2
percent market share, whose total retail e-commerce spending
reached 129.8 billion USD in 2009 9 , marginally lower than
the 2008 level of 130.1 billion USD. A high level of product
differentiation together with low fixed costs and dynamic market
revenue growth is seen in the US market. However, it also creates
rivalry in the market as a large number of players are active along
with the absence of consumer switching costs.
• Online retail sales still account for only 2.5 percent of total retail
sales on a global basis. On an average, online sales account for
6.6 per cent of total sales for the top 100 retailers in the world 10 .
Hence, most retailers have yet to make a strong online push
through multi-channel retailing.
• By 2014, global online retail sales are expected to be 778.6 billion
USD 11 , increasing at a CAGR of 22.2 percent. To sustain this level
of sales, internet penetration in North America, Europe and Asia-
Pacific is expected to increase by 10.6 percent, 7.6 percent and
12.7 percent 12 on a y-o-y basis respectively.
5 CB Richard Ellis
6 Survey by commerce solution provider ATG, December 2009
7 IDC Retail Insight
8 Data monitor, July 2010. The online retail market consists of the total revenues generated
through the sale of retail goods via online channels, valued at retail selling price.
9 The US Department of Commerce
10Forrester Research, January 2010
11 Data monitor, July 2010
12State of Retailing Online
IMAP’s Retail Industry Global Report — 2010: Appendix A-ii

Thumbnail summaries of top 50 retail companies
1: Wal-Mart Stores, Inc. (US)
Offers a full time supermarket and a limited assortment of general merchandise with operations in three
Brief description
business segments: Wal-Mart U.S., International and Sam’s Club.
Cash & Carry/Warehouse Club, Discount Department Store, Hypermarket/Supercenter/Superstore,
Operational Format
supermarket and online retail.
Revenue: $417 billion USD, year-over-year change: 0.95%
Financials (LTM)
Operating profit: $24.8 billion USD, year-over-year change: 5.1%
Net income: $14.8 billion USD, year-over-year change: 7.0%
Expected capital expenditure (2011) $3.9 billion USD
Geographic coverage (2010) US: 75%; Rest of the world: 25%
Future plans Expects to add more than 600 stores during fiscal year 2011.
2: Carrefour S.A. (France)
Offers a range of food and non-food products. Carrefour SA's supermarket chains include, among others,
Brief description
Champion and Norte brands, which primarily offer food, clothing and household goods.
Cash & Carry/Warehouse Club, Convenience/Forecourt Store, Discount Store, hypermarket,
Operational Format
Supercenter/Superstore, Supermarket and online retail store
Revenue: $122 billion USD, year-over-year change: (1.14%)
Financials (LTM)
Operating profit: $2.4 billion USD, year-over-year change: (39.0%)
Net income: $650 million USD, year-over-year change: (74.2%)
Expected capital expenditure (2010) NA
Geographic coverage (2009) France: 45%; Europe(except France): 33%; Latin America: 14%; Asia: 8%
In India, it is expected to set up 150 hypermarkets while in the global level it is planning to setup 50
Future plans
supermarkets under the Carrefour Market banner and 30 convenience stores under the Carrefour
express banner.
3: McKesson Corp. (US)
Distributes pharmaceutical products, medical surgical supplies, healthcare and beauty products and
Brief description
develops software to facilitate health enterprise. Also offers analytic, care management and patient
solutions for payers.
Operational Format Drugs/medical-surgical equipment distribution.
Revenue: $109 billion USD, year-over-year change: 1.94%
Financials (LTM)
Operating profit: $2 billion USD, year-over-year change: 17.7%
Net income: $1.3 billion USD, year-over-year change: 53.5%
Expected capital expenditure (2011) $81 million USD
Geographic coverage (2010) US: 91%; Rest of the world: 9%
Future plans Planning to expand through acquisitions
4: Cardinal Health. (US)
Specializes in health care supply chain services. Provides pharmaceutical and medical products and
Brief description
services to healthcare providers and manufacturers.
Operational Format Pharmaceutical distribution, distribution and consulting, retail pharmacy franchising and online store
Revenue: $99 billion USD, year-over-year change: 2.6%
Financials (LTM)
Operating profit: $1.4 billion USD, year-over-year change: (2.9%)
Net income: $642 million USD, year-over-year change: (44.2%)
Expected capital expenditure (2011) $62.5 million USD
Geographic coverage (2010) US: 99%; Rest of the world: 1%
Future plans
Planning acquisitions to expand their role as a service provider in healthcare industry, along with
investment in nuclear pharmacy business.
5: CVS Caremark Corp. (US)
Provides pharmacy services, sells branded and generic drugs, as well as household goods. Operates a
Brief description
chain of drug stores throughout the US.
Operational Format Drug Store/Pharmacy and online retail
Revenue: $98 billion USD, year-over-year change: 12.87%
Financials (LTM)
Operating profit: $64 billion USD, year-over-year change: 6.5%
Net Income: $3.7 billion USD, year-over-year change: 15.1%
Expected capital expenditure (2010) $632 million USD
Geographic coverage (2009) US: 100%
Future plans Plans to enter in new markets such as Puerto Rico, Memphis, and St. Louis.
IMAP’s Retail Industry Global Report — 2010: Appendix A-iii

6: Metro AG. (Germany)
Germany-based trading and retail company which operates through retail stores and marketing of
Brief description
products over the internet. It acts as the holding company for the Metro Group.
Operational Format
Apparel/Footwear Specialty, Cash & Carry/Warehouse Club, Department Store, Electronics Specialty,
Hypermarket/Supercenter/Superstore, Other Specialty, Supermarket and Online retail.
Revenue: $92 billion USD, year-over-year change: (3.57%)
Financials (LTM)
Operating profit: $2.3 billion USD, year-over-year change: (15%)
Net income: $644 million USD, year-over-year change: (4.5%)
Expected capital expenditure (2010) NA
Geographic coverage (2009) Germany: 40%; Europe: 56%; Asia/Africa: 4%
Future plans
Focus to grow in the region of Eastern Europe and Asia and also aim at a profit improvement potential of
1.5 billion Euro by 2012 with effective cost reduction methods.
7: Tesco Plc. (UK)
Tesco is an international retailer mainly dealing in food retailing. In addition it also provides retail banking
Brief description
and insurance services through its subsidiary Tesco Bank.
Operational Format
Convenience/Forecourt Store, Department Store, Discount Department Store, Hypermarket/Supercenter/
Superstore, Supermarket and online retail.
Revenue: $90 billion USD, year-over-year change: 5.59%
Financials (LTM)
Operating profit: $4.9 billion USD, year-over-year change: 5%
Net income: $3.7billion USD, year-over-year change: 9.1%
Expected capital expenditure (2011) $5.5 billion USD
Geographic coverage (2010) UK: 74%; Europe: 15%; Rest of the world: 11%
Future plans Planning to invest in retail and in banking operations.
8: The Kroger Co. (US)
Brief description A US based retailer which manufactures, processes and sells food products in its own supermarkets.
Operational Format
Convenience/Forecourt Store, Hypermarket/Supercenter/Superstore, Other Specialty, Supermarket and
Online retail.
Revenue: $80 billion USD, year-over-year change: 1%
Financials (LTM)
Operating profit: $2.1 billion USD, year-over-year change: (10.1%)
Net income: $16 million USD, year-over-year change: (94.4%)
Expected capital expenditure (2011) $1.9 – 2.1 billion USD
Geographic coverage (2010) US: 100%
Future plans
Plan to invest in capital projects during 2010 with a strong focus towards remodels and infrastructure
projects.
9: Schwarz Unternehmens Treuhand KG. (Germany)**
Brief description A hard discounter, it offers lowest prices on privately sourced products and private label brands.
Operational Format Discount Store, Hypermarket/Supercenter/Superstore
Revenue: $79.9 billion USD, year-over-year change: NA
Financials (2008)
Operating profit: NA, year-over-year change: NA
Net Income: NA, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2009) Pan Europe
Future plans NA
10: Amerisourcebergen Corp. (US)
A pharmaceutical services company, servicing both healthcare providers and pharmaceutical
Brief description
manufacturers in the pharmaceutical supply channel. The company provides drug distribution and related
services.
Operational Format Retail and Online stores
Revenue: $77 billion USD, year-over-year change: 2.24%
Financials (LTM)
Operating profit: $1.1 billion USD, year-over-year change: 7.2%
Net income: $626 million USD, year-over-year change: 101.0%
Expected capital expenditure (2011) $33.5 million USD
Geographic coverage (2010) NA
Future plans Undertake cost cutting measures
11: Costco Wholesale Corp. (US)
Sells all kinds of food, automotive supplies, toys, hardware, sporting goods, jewelry, electronics, apparel,
Brief description
health and beauty aids and other goods
Operational Format Cash & Carry/Warehouse Club and Online store
Revenue: $76 billion USD, year-over-year change: (1.46%)
Financials (LTM)
Operating profit: $2 billion USD, year-over-year change: (9.1%)
Net Income: $1.2 billion USD, year-over-year change: (15.3%)
Expected capital expenditure (2010) $542 million USD
Geographic coverage (2009) US: 79%; Canada: 14%; Rest of the world: 7%
Future plans Planning to expand its chain of wholesale depots
IMAP’s Retail Industry Global Report — 2010: Appendix A-iv

12: Rewe-Zentral AG. (Germany)**
Brief description A food retailer & Co-operative in Europe owned by some 3,000 of its independent retail members.
Operational Format
Cash & Carry/Warehouse Club, Discount Store, Drug Store/Pharmacy, Electronics Specialty, Home
Improvement, Hypermarket/Supercenter/Superstore, Other Specialty, Supermarket
Revenue: $73.2 billion USD, year-over-year change: NA
Financials (2008)
Operating profit: NA, year-over-year change: NA
Net income: NA, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) Pan Europe
Future plans NA
13: The Home Depot, Inc. (US)
A home improvement retailer which sells an assortment of building materials, home improvement, lawn
Brief description
and garden products and provides a number of services.
Operational Format Home Improvement
Revenue: $67 billion USD, year-over-year change: 2.9%
Financials (LTM)
Operating profit: $5.3 billion USD, year-over-year change: (7.1%)
Net income: $2.9 billion USD, year-over-year change: 10.2%
Expected capital expenditure (2011) $366 million USD
Geographic coverage (2010) US: 90%; Rest of the world: 10%
Future plans Plans to open more stores.
14: Target Corp. (US)
An American retailing company which provides different products range with its discount chain and online
Brief description
business.
Operational Format Discount Department Store, Hypermarket/Supercenter/Superstore and Online store
Revenue: $67 billion USD, year-over-year change: 1.1%
Financials (LTM)
Operating profit: $5.0 billion USD, year-over-year change: 6.2%
Net income: $2.7 billion USD, year-over-year change: 12.4%
Expected capital expenditure (2011) $1.1 billion USD
Geographic coverage (2010) US: 100%
Future plans Planning to open new stores
15: Aldi GmBh & co OHG. (Germany)**
Owns and operates a chain of discount grocery stores whose products include food, alcoholic drinks,
Brief description
electrical products, kitchenware, toys, clothing, and flowers.
Operational Format Discount Store, Supermarket and Online store
Revenue: $66.1 billion USD, year-over-year change: NA
Financials (2008)
Operating: NA, year-over-year change: NA
Net Income: NA, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) Europe, US, and Australia
Future plans NA
16: Walgreen Co. (US)
Offers health services, including primary and acute care, wellness, pharmacy and disease management
Brief description
services and health and fitness.
Operational Format Drug Store/Pharmacy and Online store
Revenue: $66 billion USD, year-over-year change: 7.3%
Financials (LTM)
Operating profit: $3.4 billion USD, year-over-year change: (5.6%)
Net income: $2.1 billion USD, year-over-year change: (7%)
Expected capital expenditure (2010) $450 million USD
Geographic coverage (2009) US: 100%
Future plans Planning acquisitions for its growth strategy.
17: Groupe Auchan S.A. (France)**
Brief description
Operational Format
Operates as a food and general retailer. It provides a range of products, such as fresh produce, beauty
and baby products, and wines. In terms of its diversified offering, it also provides financial products and
services, and automated payment systems primarily to retail customers.
Discount Store, Electronics Specialty, Hypermarket/Supercenter/Superstore, Other Specialty,
Supermarket
Revenue: $55.1 billion USD , year-over-year change: 0.5%
Financials (2009)
Operating profit: $1.7 billion USD, year-over-year change: (0.8%)
Net income: $918 million USD, year-over-year change: (6.5%)
Expected capital expenditure (2010) $2.1 billion USD
Geographic coverage (2009) France: 47%; Western Europe: 29%; Central and eastern Europe and Asia: 24%
Future plans Focus on developing its E-commerce activities and to open more shopping centers.
IMAP’s Retail Industry Global Report — 2010: Appendix A-v

18: Edeka Zentrale AG. (Germany)**
Sells frozen foods, breakfast foods, cooking and baking products, nibbles and sweets, alcoholic
Brief description
beverages, pet foods, and household and cleaning products.
Cash & Carry/Warehouse Club, Convenience/Forecourt Store, Discount Store, Electronics Specialty,
Operational Format
Home Improvement, Hypermarket/Supercenter/Superstore, Other Specialty, Supermarket and Online
store
Revenue: $52.8 billion USD, year-over-year change: 18.7%
Financials (2009)
Operating profit: NA million USD, year-over-year change: NA
Net Income: NA million USD, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) Austria, Denmark, Germany
Future plans NA
19: Best Buy Co, Inc. (US)
A multinational e-retailer of consumer electronics, home office products, entertainment software,
Brief description
appliances and related services.
Operational Format Electronics Specialty and Online store
Revenue: $51 billion USD, year-over-year change: 10.3%
Financials (LTM)
Operating profit: $2.4 billion USD, year-over-year change: 13.6%
Net income: $1.4 billion USD, year-over-year change: 31.3%
Expected capital expenditure (2011) $221 million USD
Geographic coverage (2010) US: 75%; Rest of the world: 25%
Future plans Focus on international growth strategy
20: Seven & I Holdings Company Ltd. (Japan)
It is involved in electronic commerce services, Internet-related services, meal delivery services,
Brief description
publishing and property management businesses. Retail business is primarily based out of Japan and
North America.
Operational Format
Apparel/Footwear Specialty, Convenience/Forecourt Store, Department Store, Hypermarket/Supercenter/
Superstore, Other Specialty, Supermarket and Online store
Revenue: $49 billion USD, year-over-year change: (10.7%)
Financials (LTM)
Operating profit: $2.4 billion USD, year-over-year change: (19.6%)
Net Income: $481 million USD, year-over-year change: (51.4%)
Expected capital expenditure (2011) NA
Geographic coverage (2010) Japan: 70%; North America: 28%; Rest of the world: 2%
Future plans Plans to introduce new format stores and specialty stores.
21: Aeon company, Ltd. (Japan)
Operates general merchandise stores and also engaged in women’s and casual clothing store, business
Brief description
and development of commercial property, and financing services through property.
Apparel/Footwear Specialty, Convenience/Forecourt Store, Department Store, Discount Store,
Operational Format
Drug Store/Pharmacy, Home Improvement, Hypermarket/Supercenter/Superstore, Other Specialty,
Supermarket
Revenue: $49 billion USD, year-over-year change: 3.47%
Financials (LTM)
Operating profit: $1.4 billion USD, year-over-year change: (4.7%)
Net income: $333 million USD, year-over-year change: NA
Expected capital expenditure (2011) NA
Geographic coverage (2010) Japan: 92%; Rest of the world: 8%
Future plans Planning cost restructuring program and focus on China market development
22: Lowe’s Companies, Inc. (US)
Distributes building materials and supplies through stores in the US. Offers a complete line of products
Brief description
and services for home decoration, maintenance, repair, re-modeling and property maintenance.
Operational Format Home Improvement and online store
Revenue: $48 billion USD, year-over-year change: (2.09%)
Financials (LTM)
Operating profit: $3.3 billion USD, year-over-year change: (17.8%)
Net income: $1.9 billion USD, year-over-year change: (18.8%)
Expected capital expenditure (2011) $516 million USD
Geographic coverage (2010) North America: 100%
Future plans Plans to open some new stores
IMAP’s Retail Industry Global Report — 2010: Appendix A-vi

23: Centres distribeutrs E. Leclerc. (France)**
A retailing private cooperative grouping with nearly of 500 members and has a dominant presence in the
Brief description
French market.
Operational Format
Convenience/Forecourt Store, Discount Store, Home Improvement, Hypermarket/Supercenter/
Superstore, Other Specialty, Supermarket and Online retail
Revenue: $47.5 billion USD, year-over-year change: NA
Financials (2008)
Operating profit: NA, year-over-year change: NA
Net Income: NA, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) France, Italy, Poland, Portugal, Slovenia, Spain
Future plans NA
24: Woolworths Ltd. (Australia)
Australia based retailer in the manufacturing, export and wholesale of processed foods. It also operates
Brief description
in hospitality business which includes hotels, pubs, F&B, and gaming operations.
Operational Format
Convenience/Forecourt Store, Discount Department Store, Electronics Specialty, Other Specialty,
Supermarket and Online store
Revenue: $46 billion USD, year-over-year change: 4.2%
Financials (LTM)
Operating profit: $2.7 billion USD, year-over-year change: 9.3%
Net income: $1.8 billion USD, year-over-year change: 10.1%
Expected capital expenditure (2011) $1.8 billion USD
Geographic coverage (2010) Australia: 92%; New Zealand: 8%
Future plans Plans to open new stores
25: Wesfarmers Ltd. (Australia)
Owns retail chains, operates mines, writes insurance, manufacture and distributes industrial products,
Brief description
manufacture fertilizers and chemicals, and distributes liquefied petroleum gas and medical and industrial
gases.
Operational Format Supermarket and Online retail
Revenue: $45 billion USD, year-over-year change: 1.6%
Financials (LTM)
Operating profit: $2 billion USD, year-over-year change: (8.4%)
Net income: $1.4 billion USD, year-over-year change: 2.8%
Expected capital expenditure (2011) $2.1 billion USD
Geographic coverage (2010) Australia: 100%
Future plans
Focus to improve margins, capital management, expenses, the operations and performance of individual
stores.
26: ITM Développement International (Intermarché). (France)**
Brief description A French co-operative and consortium of independent retailers
Operational Format
Apparel/Footwear Specialty, Convenience/Forecourt Store, Discount Store, Home Improvement, Other
Specialty, Supermarket
Revenue: $44.5 billion USD, year-over-year change: NA
Financials (2008)
Operating Income: NA , year-over-year change: NA
Net Income: NA year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) Belgium, Bosnia-Herzegovina, France, Poland, Portugal, Romania, Serbia, Spain
Future plans NA
27: Sears Holdings Corp. (US)
Brief description
Operational Format
A broad line retailer with full line and specialty retail stores. Retails home appliances, as well as tools,
lawn and garden products, home electronics, and other products. It also provides automotive repair and
maintenance.
Apparel/Footwear Specialty, Department Store, Discount Department Store, Home Improvement,
Hypermarket/Supercenter/Superstore, and Online store.
Revenue: $44 billion USD, year-over-year change: (5.8%)
Financials (LTM)
Operating profit: $695 million USD, year-over-year change: 20.8%
Net Income: $280 million USD, year-over-year change: 343%
Expected capital expenditure (2011) $125 million USD
Geographic coverage (2010) US: 90%; Canada: 10%
Future plans
Planning to add new product line with their Kenmore business and concentrate on international
expansion.
IMAP’s Retail Industry Global Report — 2010: Appendix A-vii

28: Safeway Inc. (US)
A food and drug retailer with a network of distribution, manufacturing and food-processing facilities, it
Brief description
owns and operates GroceryWorks.com, an online grocery channel doing business under the names
Safeway.com, Vons.com and Genuardis.com
Operational Format Supermarket and Online store
Revenue: $41 billion USD, year-over-year change: (7.4)%
Financials (LTM)
Operating profit: $1.2 billion USD, year-over-year change: (27.4)%
Net Loss: $1.2 billion USD, year-over-year change: NA
Expected capital expenditure (2010) $243 million USD
Geographic coverage (2009) US: 85%; Canada: 15%
Future plans Undertake cost cutting measures.
29: Koninklijke Ahold N.V. (Netherlands)
Deals in food articles and also retails health and beauty supplies, prescription drugs, and wine and liquor.
Brief description
Also retails food over the internet in Netherlands and the US.
Operational Format
Convenience/Forecourt Store, Discount Store, Drug Store/Pharmacy, Hypermarket/Supercenter/
Superstore, Other Specialty, Supermarket and Online store
Revenue: $40 billion USD, year-over-year change: 8.9%
Financials (LTM)
Operating profit: $1.9 billion USD, year-over-year change: 7.9%
Net income: $1.4 billion USD, year-over-year change: (17%)
Expected capital expenditure (2010) NA
Geographic coverage (2009) US: 58%; Netherlands: 36%: Rest of the Europe: 6%
Future plans Plans acquisitions for the growth and undertaking cost cutting measures
30: SuperValu Inc. (US)
Deals in pharmaceuticals and also provides supply chain services, which includes wholesale distribution
Brief description
and related logistics support services
Operational Format Discount Store, Drug Store/Pharmacy, Hypermarket/Supercenter/Superstore, Supermarket and Online store
Revenue: $39 billion USD, year-over-year change: (8.9%)
Financials (LTM)
Operating profit: $1.1 billion USD, year-over-year change: (12.1%)
Net income: $347 million USD, year-over-year change: NA
Expected capital expenditure (2011) $161 million USD
Geographic coverage (2010) US: 100%
Future plans Undertake cost cutting measures for effective pricing strategy.
31: Grazziotin S.A. (Brazil)
Sells clothes, shoes, accessories and home furnishing, among others. The Company operates in the
Brief description
Brazilian states of Rio Grande do Sul, Parana and Santa Catarina. Grazziotin SA sells its products
through 257 stores divided into four networks of department stores.
Operational Format Department and Specialty stores
Revenue: $39 billion USD, year-over-year change: 5.7%
Financials (LTM)
Operating profit: $7.1 billion USD, year-over-year change: (3.0%)
Net income: $5.5 billion USD, year-over-year change: (6.8%)
Expected capital expenditure (2010) NA
Geographic coverage (2008) Brazil: 100%
Future plans NA
32: Finatis S.A. (France)
Brief description A holding company with interests in the commercial property investment, food and sport goods distribution
Operational Format Retail stores and Online stores
Revenue: $38 billion USD, year-over-year change: (1.23%)
Financials (LTM)
Operating profit: $1.8 billion USD, year-over-year change: (2.4%)
Net Income: $36 million USD, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2007) France: 72%; South America: 18%; Rest of the world: 10%
Future plans NA
33: Rallye S.A. (France)
Presence in the food and specialized retail sector, through its majority interest in Groupe Casino and
Brief description
Groupe Go Sport.
Operational Format Hypermarkets, supermarkets, and convenience stores
Revenue: $38 billion USD, year-over-year change: (1.23%)
Financials (LTM)
Operating profit: $1.7 billion USD, year-over-year change: (3.0%)
Net income: $109 million USD, year-over-year change: NA
Expected capital expenditure (2010) $0.124 million USD
Geographic coverage (2009) France: 67%; South America: 24%; Asia: 6%; Rest of the world:3%
Future plans NA
IMAP’s Retail Industry Global Report — 2010: Appendix A-viii

34: Casino Guichard-Perrachon S.A. (France)
Distributes a range of products via a chain of more than 10,000 stores and also provides supplementary
Brief description
services such as restaurants and foodservice.
Cash & Carry/Warehouse Club, Convenience/Forecourt Store, Discount Department Store, Discount
Operational Format
Store, Electronics Specialty, Hypermarket/Supercenter/Superstore, Non-Store, Other Specialty,
Supermarket and Online retail.
Revenue: $37 billion USD, year-over-year change: (1.2%)
Financials (LTM)
Operating profit: $1.7 billion USD, year-over-year change: (4.4%)
Net income: $733 million USD, year-over-year change: 19.4%
Expected capital expenditure (2010) NA
Geographic coverage (2009) France: 66%; Latin America: 24%; Asia: 6%; Rest of the world: 4%
Future plans Planning to expand through new store concept and to restructure capital structure.
35: Sysco Corp. (US)
Distributes food and retailed products primarily to the foodservice industry. Also distributes personal care
Brief description
guest amenities, housekeeping supplies, room accessories, and textile to the lodging industry.
Operational Format Wholesale Distribution
Revenue: $37 billion USD, year-over-year change: 1.1%
Financials (LTM)
Operating profit: $2 billion USD, year-over-year change: 5.5%
Net income: $1.2 billion USD, year-over-year change: 11.7%
Expected capital expenditure (2011) $176 million USD
Geographic coverage (2010) US: 90%; Canada: 9%; Rest of the world: 1 %
Future plans
Planning investment in new technology and a disciplined acquisition program along with cost reduction
methodologies.
36: J Sainsbury Plc. (UK)
Principal activities are grocery retailing and financial services. Its businesses are organized into three
Brief description
operating segments: Retailing (Supermarkets and Convenience); Financial services (Sainsbury’s Bank
joint venture), and Property investment (British Land joint venture and Land Securities joint venture).
Operational Format Convenience/Forecourt Store, Hypermarket/Supercenter/Superstore, Supermarket and online retail.
Revenue: $32 billion USD, year-over-year change: 5.6%
Financials (LTM)
Operating profit: $1.1 billion USD, year-over-year change: 11.7%
Net income: $934 million USD, year-over-year change: 102.4%
Expected capital expenditure (2011) $1.6 billion USD
Geographic coverage (2010) UK: 100%
Future plans
Plans to open more stores with the target to increase space by 15% by March 2011 and reduce net debt
by $1.9 billion Euro.
37: The Ikea Group. (Sweden)**
A Dutch Corporation in home products business that designs and sells furniture, appliances and home
Brief description
accessories.
Operational Format Other Specialty
Revenue: $31.7 billion USD, year over-year change: NA
Financials (2008)
Operating profit: NA, year-over-year change: NA
Net income: NA, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2009) Global presence
Future plans NA
38: Celesio AG. (Germany)
Deals in pharmaceuticals, operates in retail pharmacies, and provides logistics and transportation
Brief description
services for pharmaceuticals.
Operational Format Wholesale and Retail
Revenue: $31 billion USD, year-over-year change: 1.6%
Financials (LTM)
Operating profit: $703 million USD, year-over-year change: (11.6%)
Net Loss: $41 million USD, year-over-year change: NA
Expected capital expenditure (2010) $211 million USD
Geographic coverage (2009) France: 32%; Rest of Europe: 27%; UK: 22%; Germany: 19%
Future plans Focus on improvement of EBITDA under Agenda 2015 program
IMAP’s Retail Industry Global Report — 2010: Appendix A-ix

39: George Weston Ltd. (Canada)
Processes and distributes food throughout North America to grocer, wholesalers, warehouses and
Brief description
independent accounts. The company also processes and packages fish.
Operational Format Supermarkets and online retail
Revenue: $30 billion USD, year-over-year change: (1%)
Financials (LTM)
Operating profit: $1.2 billion USD, year-over-year change: (9.6%)
Net Income: $317 million USD, year-over-year change: 24.4%
Expected capital expenditure (2010) NA
Geographic coverage (2009) Canada: 98%; US: 2%
Future plans Undertake cost cutting measures
40: Loblaw Companies Ltd. (Canada)
Brief description A food distributor and a provider of drugstore, general merchandise, financial products and services.
Operational Format
Cash & Carry/Warehouse Club, Discount Store, Hypermarket/Supercenter/Superstore, Supermarket and
Online store
Revenue: $29 billion USD, year-over-year change: (0.22%)
Financials (LTM)
Operating profit: $1.2 billion USD, year-over-year change: 14.5%
Net income: $634 million USD, year-over-year change: 19.3%
Expected capital expenditure (2010) $285 million USD
Geographic coverage (2009) Canada: 100%
Future plans Plans to invest in infrastructure and undertake cost cutting measures
41: Amazon.com, Inc. (US)
A US based multinational electronic commerce company, offers services to consumers, sellers, and
Brief description
developers through its retail Websites. It also manufactures and sells the Kindle e-reader..
Operational Format Online Store
Revenue: $29 billion USD, year-over-year change: 27.8%
Financials (LTM)
Operating profit: $1.4 billion USD, year-over-year change: 34.1%
Net income: $1.1 billion USD, year-over-year change: 39.8%
Expected capital expenditure (2010) $266 million USD
Geographic coverage (2009) North America: 52%; Rest of the world: 48%
Future plans Focus on international online segment
42: Delhaize Group. (Belgium)
Brief description
Operational Format
A food retailer which operates in eight countries whose principal activity is the operation of food
supermarkets. It also engages in food wholesaling to stores and in nonfood retailing of products such as
pet products and health and beauty products.
Cash & Carry/Warehouse Club, Convenience/Forecourt Store, Discount Store, Hypermarket/Supercenter/
Superstore , Other Specialty, Supermarket and Online retail.
Revenue: $28 billion USD, year-over-year change: 4.8%
Financials (LTM)
Operating profit: $1.3 billion USD, year-over-year change: 4.2%
Net Income: $704 million USD, year-over-year change: 10.1%
Expected capital expenditure (2010) NA
Geographic coverage (2009) US: 68%; Belgium: 24%; Greece: 7%; Rest of the world: 1%
Future plans Plans to open new stores
43: Système U Centrale Nationale. (France)**
Co-operative trader’s society engaged in retailing of groceries, apparels and other related products. It
Brief description
also offers several services, including rent a vehicle, mobile services and other related services.
Operational Format Discount Store, Hypermarket/Supercenter/Superstore, Supermarket
Revenue: $25.1 billion USD, year-over-year change: NA
Financials (2008)
Operating profit: NA, year-over-year change: NA
Net income: NA, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) France, Martinique, Mauritius, New Caledonia, Reunion, Tahiti
Future plans NA
44: El Corte Inglés, S.A. (Spain)**
Operates a chain of departmental stores in Spain. It provides various articles and personal services to its
Brief description
customers. The company also operates a convenience store in Madrid.
Operational Format Department Store and online store
Revenue: $25.1 billion USD, year-over-year change: NA
Financials (2008)
Operating Income: NA, year-over-year change: NA
Net Income: $542 million USD, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) Belgium, Greece, Mexico, Portugal, Spain
Future plans NA
IMAP’s Retail Industry Global Report — 2010: Appendix A-x

45: Migros-Genossenschafts Bund. (Switzerland)**
Brief description One of Switzerland's largest enterprises, it is largest supermarket chain and largest employer in country.
Apparel/Footwear Specialty, Convenience/Forecourt Store, Department Store, Discount Store,
Operational Format
Electronics Specialty, Hypermarket/Supercenter/Superstore, Other Specialty, Supermarket and Online
store
Revenue: $23.8 billion USD, year-over-year change: NA
Financials (2008)
Operating profit: NA, year-over-year change: NA
Net Income: NA, year-over-year change:NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) France, Germany, Switzerland
Future plans NA
46: Mercadona S.A. (Spain)**
Brief description A Spanish family-owned supermarket company whose business model is based on low prices.
Operational Format Supermarket and Online store
Revenue: $20 billion USD , year-over-year change: 1%
Financials (2009)
Operating profit: $513 million USD, year-over-year change: (13%)
Net Income: $375 million USD, year-over-year change: (15%)
Expected capital expenditure (2011) NA
Geographic coverage (2009) Spain: 100%
Future plans Plans to invest in logistics
47: The TJX companies, Inc. (US)**
Brief description An off-price apparel and home fashions retailer in the US and worldwide.
Operational Format Apparel/Footwear Specialty, Other Specialty
Revenue: $19 billion USD, year-over-year change: NA
Financials (2008)
Operating profit: NA, year-over-year change: NA
Net income: $881 million USD, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) Canada, Germany, Rep. of Ireland, Puerto Rico, UK, U.S.
Future plans NA
48: Coop Italia. (Italy)
Brief description It is a system of Italian consumers' cooperatives which operates the largest supermarket chain in Italy.
Operational Format Discount Store, Hypermarket/Supercenter/Superstore, Supermarket
Revenue: $17.1 billion USD , year-over-year change: NA
Financials (2009)
Operating profit: NA, year-over-year change: NA
Net income: NA, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2009) Croatia, Italy
Future plans NA
49: Louis Delhaize S.A. (Belgium)**
Operates a chain of hypermarkets, supermarkets, and discount stores in Belgium, Luxembourg, France,
Brief description
the French West Indies, and Hungary.
Operational Format
Cash & Carry/Warehouse Club, Convenience/Forecourt Store, Discount Store, Hypermarket/Supercenter/
Superstore, Other Specialty, Supermarket
Revenue: $16.1 billion USD, year-over-year change: NA
Financials (2008)
Operating profit: NA, year-over-year change: NA
Net Income: NA, year-over-year change: NA
Expected capital expenditure (2010) NA
Geographic coverage (2008) Belgium, France, French Guiana, Guadeloupe, Hungary, Luxembourg, Martinique, Romania, UK
Future plans NA
50: eBay Inc. (US)
Operates an online trading community. Their service is used by buyers and sellers for the exchange of
Brief description
products and services. It also offers through a subsidiary a secure online payment service.
Operational Format Online Store
Revenue: $9 billion USD, year-over-year change: 2.1%
Financials (LTM)
Operating Income: $1.6 billion USD, year-over-year change: (29.6%)
Net Income: $2.5 billion USD, year-over-year change: 34.2%
Expected capital expenditure (2010) $157 million USD
Geographic coverage (2009) US: 45%; Germany: 13%; UK: 12%; Rest of the world: 30%
Future plans Plans to tap more international markets
Source: Bloomberg and company website
** This company is private and hence data availability is limited
IMAP’s Retail Industry Global Report — 2010: Appendix A-xi

Thumbnail summaries of retail activities in various regions
1: North America
Brief description
Largest e-Commerce market with market value of more than 210 billion USD in 2009 combines a high ranking
in various areas: online population, percentage of online buyers, and per-capita online spending.
Key countries US and Canada
No. of listed retail companies 637
Top 5 domestic companies
based on revenues
Current scenario and outlook
2: Europe
Wal Mart Stores: $417 billion USD
McKesson Corp: $109.4 billion USD
Cardinal Health: $98.5 billion USD
CVS Caremark Corp: $98.2 billion USD
Kroger Co: $79.7 billion USD
- The base of Internet users in North America is 266 million users with 77.4 % penetration level, is expected to
continue to increase at a steady growth rate of 3% over the next five years (as per internet stats, leading to
good potential for online retail market. North America is the highest internet penetrated region in the world with
77.4% penetration rate followed by Oceania/Australia region with 61.3% penetration.
- Convenience, value, and selection will remain the primary drivers of growth. The online channel consistently
outpaces store growth and withstands shockwaves in the economy because consumers value its low and
transparent prices, convenience, and comprehensive assortment.
Brief description Second largest market for e-commerce sales with market value of nearly 200 billion USD in 2009.
Key countries UK, Germany, and France
No. of listed retail companies 762
Top 5 domestic companies
based on revenues
Current scenario and outlook
3: Latin America and the Caribbean
Carrefour SA: $122.1 billion USD
Metro AG: $92.4 billion USD
Tesco PLC: $90.4 billion USD
Ahold NV: $39.7 billion USD
Finatis: $38.3 billion USD
Brief description Emerging region
Key countries Brazil and Mexico
No. of listed retail companies 55
Top 5 domestic companies
based on revenues
Current scenario and outlook
4: Asia-Pacific, the Middle East and Africa
- The UK is the most mature market. France and Germany have much higher online sales and greater
e-commerce activity among Web users than Italy and Spain, where the internet still represents a fraction of
total retail volume. This can also be understood from the internet penetration rates which is higher in France
(68.9%) and Germany (79.1%) as compared to Italy (51.7%) & Spain (62.6%).
- These business-to-consumer (B2C) online sales in Europe are continuing to rise at double-digit growth rate of
11 percent because most European countries’ online retail sales are still relatively immature. Major growth in
Europe will come from the emerging markets of Southern, Central, and Eastern Europe.
- Meanwhile, those that are more mature like the UK are witnessing continued growth due to strong online value
proposition.
Grazziotin-PREF: $38.7 billion USD
Pao Acuca- Pref A: $15.3 billion USD
Cencosud SA: $10.6 billion USD
Falabella: $7.4 billion USD
Distribucion SER: $5.3 billion USD
Brief description Fastest growing region
Key countries China, South Korea and India
No. of listed retail companies 974
Top 5 domestic companies
based on revenues
Current scenario and outlook
- Growth is expected to be dominated by Brazil which is set to grow from an online spending perspective, as its
eCommerce landscape is better developed and per capita online spending tends to be on the higher side .
Seven & I holdings: $48.7 billion USD
Aeon Company Ltd: $48.6 billion USD
Woolworths Ltd: $45.4 billion USD
Wesfarmers Ltd: $45.4 billion USD
Yamada denki: $21.7 billion USD
- By 2014, Asia Pacific will include almost half of the world’s online population, with China taking the clear lead
with 42% of online users. Eventually, online spending in China will also continue to outpace across the region
rendering it a far larger e-Commerce market overall.
- Another two e-Commerce giants in the region, Japan and South Korea, is expected to witness increase in
online population by 1% to 2% on an average over the next five years. However, South Korea’s highly tenured
users are big spenders on digital goods.
- The Middle East’s slow internet growth, low credit card penetration and the lack of online stores has left the
region’s online retail industry lagging behind some of its global peers. However, it is gradually changing.
IMAP’s Retail Industry Global Report — 2010: Appendix A-xii

Thumbnail summaries of retail activities in various countries
1: Australia
Online Penetration 75% (2009)
Percentage of online buyers 70% (2009)
Average online spending $556 USD per capita in 2009
Average online tenure (years) 6.5
No. of listed retail companies 45
Top 3 domestic retail
companies based on
revenues
Outlook
2: Brazil (Metropolitan)
Online Penetration 48% (2009)
Percentage of online buyers 19% (2009)
Woolworths Ltd: $45.5 billion USD
Wesfarmers Ltd: $45.4 billion USD
Metcash Ltd: $10.0 billion USD
Average online spending $98 USD per capita in 2009
Average online tenure (years) 5.5
No. of listed retail companies 19
Top 3 domestic companies
based on revenues
Outlook
3: Canada
Online Penetration 72% (2009)
Percentage of online buyers 48% (2009)
- Australia’s retail market size is estimated to be $236.6 billion USD in 2009 and expected to grow in the range
of 2-3 percent for the next five years.
- Australia’s e-Commerce market will double in size over the next four years, growing from 12 billion USD in
2009 to $18 billion USD by 2014.
Grazziotin-PREF: $38.7 billion USD
Pao Acuca- Pref A : $15.3 billion USD
Lojas-Americ-PRF: $4.9 billion USD
Average online spending $535 USD per capita in 2009
Average online tenure (years) 8.8
No. of listed retail companies 73
Top 3 domestic companies
based on revenues
Outlook
4: China (Metropolitan)
Online Penetration 64% (2009)
Percentage of online buyers 37% (2009)
- Brazil’s retail sales for 2009 rose nearly 6 percent in 2009 compared to just over 9 percent in 2008.Going
forward, its retail sales is expected to continue at strong growth rate in the range of 8-10 percent.
- On online retail front, Brazil has the largest online user base in Latin America and is set to dominate from
online business point of view.
Weston George: $30.3 billion USD
Loblaw Companies Ltd: $29.4 billion USD
Alimen Couche-B: $17.0 billion USD
Average online spending $191 USD per capita in 2009
Average online tenure (years) 5.7
No. of listed retail companies 114
Top 3 domestic companies
based on revenues
Outlook
- Canada’s retail market size is estimated to be $285.1 billion USD in 2009 and expected to grow in the range of
1-2 percent for the next five years.
- Canada online retail managed to grow 6.8% in 2009 to reach $16.1 billion USD and is forecast to reach $28.7
billion USD by 2014.
Suning Applian-A: $9.7 billion USD
Gome Electrical: $6.8 billion USD
Lianhua Superm-H: $3.8 billion USD
- China’s retail market size is estimated to be $184.1 billion USD in 2009 and expected to have robust growth
rate of 10-15 percent for the next five years.
- China online retail market was valued at $26.0 billion USD in 2009 and is forecast to reach $60.3 billion USD
by 2014. It is one of the key emerging e-commerce markets with rapidly growing internet population.
IMAP’s Retail Industry Global Report — 2010: Appendix A-xiii

5: France
Online Penetration 64% (2009)
Percentage of online buyers 55% (2009)
Average online spending $310 USD per capita in 2009
Average online tenure (years) 5.2
No. of listed retail companies 44
Top 3 domestic companies
based on revenues
Outlook
6: Germany
Online Penetration 71% (2009)
Percentage of online buyers 70% (2009)
Carrefour SA: $122.1 billion USD
Finatis SA: $38.3 billion USD
Rallye SA: $38.3 billion USD
Average online spending $349 USD per capita in 2009
Average online tenure (years) 6.8
No. of listed retail companies 39
Top 3 domestic companies
based on revenues
Outlook
8: India (Metropolitan)
Online Penetration 18% (2009)
Percentage of online buyers 7% (2009)
- France’s retail market size is estimated to be $519.8 billion USD in 2009 and expected to have a growth rate of
1-3 percent for the next five years.
- France online retail market was valued at $13.0 billion USD in 2009 and is forecast to reach $23.7 billion USD
by 2014.
Metro AG: $92.4 billion USD
Celesio AG: $31.4 billion USD
Praktiker BAU-UN: $4.9 billion USD.
Average online spending $71 USD per capita in 2009
Average online tenure (years) 3.5
No. of listed retail companies 37
Top 3 domestic companies
based on revenues
Outlook
9: Italy
Online Penetration 51% (2009)
Percentage of online buyers 20% (2009)
With more than $82 million inhabitants, the German market is the largest in Europe; it is very competitive and
segmented, with many sectors and products being saturated. Germany online retail market was valued at $24.1
billion USD in 2009 and is forecast to reach $37.7 billion USD by 2014.
Pantaloon Retail: $2.1 billion USD
Shoppers Stop: $305 million USD
Vishal Retail: $292 million USD
Average online spending $281 USD per capita in 2009
Average online tenure (years) 5
No. of listed retail companies 8
Top 3 domestic companies
based on revenues
Outlook
10: Japan
Online Penetration 79% (2009)
Percentage of online buyers 88% (2009)
- India’s organized retail market size is estimated to be $16.1 billion USD in 2009 and expected to have robust
growth rate of 12-15 percent for the next five years.
- India online retail market was valued at $0.23 billion USD in 2009 and is forecast to reach $1.1 billion USD by 2014.
Gruppu Coin SPA: $1.9 billion USD
Marr SPA: $1.5 billion USD
Ciccolella SPA: $493 million USD
Average online spending $500 USD per capita in 2009
Average online tenure (years) 7
No. of listed retail companies 379
Top 3 domestic companies
based on revenues
Outlook
- Italy’s retail market size is estimated to be $550.8 billion USD in 2009 and expected to have a growth rate of
1-3 percent for the next five years.
- Italy online retail market was valued at $3.5 billion USD in 2009 and is forecast to reach $6.3 billion USD by 2014.
Seven & I holdings: $48.7 billion USD
Aeon Company Ltd: $48.6 billion USD
Yamada Denki: $21.7 billion USD
Japan, the e-Commerce giant in Asia Pacific region, will see online population increases of 1–2% on average
over the next five years.
IMAP’s Retail Industry Global Report — 2010: Appendix A-xiv

12: The Netherlands
Online Penetration 81% (2009)
Percentage of online buyers 70% (2009)
Average online spending $321 USD per capita in 2009
Average online tenure (years) 9.1
No. of listed retail companies 7
Top 3 domestic companies
based on revenues
Outlook
14: South Korea
Online Penetration 76% (2009)
Percentage of online buyers 94% (2009)
Ahold NV: $39.7 billion USD
Mediq NV: $3.5 billion USD
Sligro Food Group: $3.2 billion USD
Average online spending $653 USD per capita in 2009
Average online tenure (years) 7.7
No. of listed retail companies 35
Top 3 domestic companies
based on revenues
Outlook
15: Spain
Online Penetration 58% (2009)
Percentage of online buyers 31% (2009)
- The Netherland’s retail market size is estimated to be $115.1 billion USD in 2009 and expected to grow in the
range of 3-5 percent for the next five years.
- The Netherlands online retail market was valued at $4.3 billion USD in 2009 and is forecast to reach $7.2
billion USD by 2014.
Lotte Shopping: $12.6 billion USD
Shinsegae Co Ltd: $9.0 billion USD
Daewoo Motors SAL: $2.5 billion USD
Average online spending $307 USD per capita in 2009
Average online tenure (years) 5.4
No. of listed retail companies 5
Top 3 domestic companies
based on revenues
Outlook
Source: Bloomberg, Frost & Sullivan, Forrester Research
- South Korea’s retail market size is estimated to be $100.1 billion USD in 2009 and expected to grow in the
range of 5-7 percent for the next five years.
- South Korea online retail market was valued at $18.3 billion USD in 2009 and is forecast to reach $28.2 billion
USD by 2014. It is an emerging e-commerce powerhouse with highly tenured users and big spenders.
Inditex: $16.2 billion USD
Adolfo Dominguez: $246 million USD
Funespana SA: $100 million USD
- Spain’s retail market size is estimated to be $240.9 billion USD in 2009 and expected to grow in the range of
1-2 percent for the next five years.
- Spain online retail market was valued at $2.6 billion USD in 2009 and is forecast to reach $6.4 billion USD by 2014.
IMAP’s Retail Industry Global Report — 2010: Appendix A-xv

Appendix B: Summary of M&A transactions 1 in the retail sector
The retail sector saw 1409 deals valued at 17.1 billion USD in LTM ending September 2010, representing a downside of 33.6% in terms of
deal value (25.7 billion USD during the previous period with 1,473 deals). Dollar volume in this period included two major deals (Kohlberg
Kravis Roberts/Pets at Home and Lotte Shopping Co/GS Square and GS Mart); which represented 2.7 billion USD or nearly 15.8 percent of
total dollar volume. During the previous period, the largest deal was the acquisition of Next Rx LLC by Express Scripts for 3.5 billion USD.
Particulars LTM ending September 2009 LTM ending September 2010
Total number of deals 1473 1409
Deals with available transaction value 479 375
Total transaction value $25.7 billion USD $17.1 billion USD
Largest deal
Top 5 deals as a %
of total deal value
Express Scripts acquired Next Rx
for $3.5 billion USD
In terms of business segment, specialty and distributors accounted for the highest in terms of value at
nearly 56 percent of total dollar volume for the period.
Top Five Segments No. of transactions Value (USD bn)
Specialty Stores 300 5.3
Distributors 692 4.4
Department Stores 50 2.4
General Merchandise Stores 28 1.6
Home Furnishing Retail 38 1.0
In terms of geography, UK had the highest transaction value of $3.9 billion USD with a total of 161 deals
in the last 12 months. The US came in second with a value of $3.4 billion USD through 370 deals.
Among regions, Europe was the clear leader at $7.3 billion USD with 688 deals.
Top Five Countries No. of transactions Value (USD bn)
United Kingdom 161 3.9
United States 370 3.4
South Korea 3 1.2
France 87 1.0
China 66 0.9
Top Five Regions No. of transactions Value (USD bn)
Europe 688 7.3
North America 412 4.1
Asia Pacific 245 4.1
Latin America and Caribbean 37 1.6
Middle East 13 0.2
1 Only mergers and acquisitions have been considered.
Source: Capital IQ
IMAP’s Retail Industry Global Report — 2010: Appendix B-i
Kohlberg Kravis Roberts acquired
Pets at Home for $1.5 billion USD
32.4% 26.9%

Summary of transactions 1 in the retail sector in LTM ended September 2010
Country
# of Transactions
LTM ended
Sept. 2010
Total Transaction
Value in USD mn
Source: Capital IQ M&A Database
1 Only Mergers and Acquisitions have been considered
Average EV/
Revenue (x)
Average EV/
EBITDA (x)
Average EV/
EBIT (x)
United Kingdom 161 3895.7 0.8 12.9 12.0
United States 370 3373.9 1.4 15.9 29.9
South Korea 3 1153.4 1.0 - -
France 87 1071.6 0.6 11.7 11.5
China 66 899.1 1.1 37.6 73.0
British Virgin Islands 6 557.0 0.8 - -
Canada 42 772.2 0.4 6.6 26.0
Japan 33 761.6 0.3 19.3 58.1
Australia 37 617.2 0.3 - 4.7
Bermuda 1 525.3 1.6 7.9 9.8
Greece 5 441.5 5.0 - -
Austria 13 321.3 - - -
Ukraine 20 310.5 - - -
Hong Kong 19 243.3 3.5 8.8 11.7
Malaysia 25 240.4 - - -
Colombia 3 240.0 - - -
Netherlands 27 223.3 - - -
Denmark 27 201.7 - - -
Switzerland 22 192.9 - - -
Italy 36 175.0 1.1 7.0 -
Spain 31 111.8 0.9 5.9 -
Belgium 9 109.1 0.6 5.8 10.3
Singapore 15 97.0 - - -
Ireland 6 86.7 - - -
Israel 5 80.5 1.8 - 17.8
Indonesia 5 74.6 - - -
Turkey 5 67.1 - - -
Germany 70 44.3 1.3 - -
Sweden 34 31.8 0.4 - -
Poland 16 25.9 0.1 3.5 0.6
Brazil 12 25.2 - - -
Norway 16 23.6 2.9 - -
India 14 13.5 0.2 - -
Lithuania 2 10.8 - - -
Vietnam 4 7.4 - - -
Thailand 5 6.3 0.2 - -
South Africa 6 5.4 - - -
Country
# of Transactions
LTM ended
Sept. 2010
Argentina 3 3.0 - - -
Estonia 4 2.9 - 9.7 -
New Zealand 10 2.9 5.3 - -
United Arab Emirates 2 2.5 - - -
Russia 43 1.7 - - -
Liechtenstein 1 1.2 - - -
Sri Lanka 1 1.0 - - -
Taiwan 3 0.6 - - -
Philippines 2 0.2 - - -
Cyprus 1 0.1 - - -
Finland 26 - - - -
Czech Republic 10 - - - -
Mexico 5 - - - -
Croatia 4 - - - -
Hungary 4 - - - -
Kazakhstan 3 - - - -
Romania 3 - - - -
Belarus 2 - - - -
Bulgaria 2 - - - -
El Salvador 2 - - - -
Latvia 2 - - - -
Slovenia 2 - - - -
Zimbabwe 2 - - - -
Burundi 1 - - - -
Chile 1 - - - -
Dominican Republic 1 - - - -
Egypt 1 - - - -
Kenya 1 - - - -
Mauritania 1 - - - -
Mauritius 1 - - - -
Namibia 1 - - - -
Nigeria 1 - - - -
Panama 1 - - - -
Peru 1 - - - -
Portugal 1 - - - -
Slovakia 1 - - - -
Syria 1 - - - -
Total 1409 17054.3 2.9 13.3 29.7
IMAP’s Retail Industry Global Report — 2010: Appendix B-ii
Total Transaction
Value in USD mn
Average EV/
Revenue (x)
Average EV/
EBITDA (x)
Average EV/
EBIT (x)

Top 10 transactions in the retail sector (LTM)
1: Kohlberg Kravis Roberts / Pets at Home
Announced/Initial Filing Date: 1/27/2010 COMMENTS:
Target/Issuer: Pets at Home Ltd.
Total Transaction Value ($mm USD) 1546.93
Buyers/Investors: Kohlberg Kravis Roberts & Co.
Percent Sought (%): 100
Implied Enterprise Value/Revenues: 2.37
Implied Enterprise Value/EBITDA: 13.64
Implied Enterprise Value/EBIT: -
Headquarters-Country: United Kingdom
Primary Industry: Specialty Stores
2: Lotte Shopping Co / GS Square and GS Mart
Announced/Initial Filing Date: 2/9/2010 COMMENTS:
Target/Issuer: GS Square Co., Ltd and GS Mart Co., Ltd.
Total Transaction Value ($mm USD) 1153.25
Buyers/Investors: Lotte Shopping Co.
Percent Sought (%): 100
Implied Enterprise Value/Revenues: 0.978
Implied Enterprise Value/EBITDA: -
Implied Enterprise Value/EBIT: -
Headquarters-Country: South Korea
Primary Industry: Department Stores
3: Advent International Corporation / DFS Furniture
Announced/Initial Filing Date: 4/22/2010 COMMENTS:
Target/Issuer: DFS Furniture Company plc.
Total Transaction Value ($mm USD) 767.00
Buyers/Investors: Advent International Corporation.
Percent Sought (%): 100
Implied Enterprise Value/Revenues: -
Implied Enterprise Value/EBITDA: -
Implied Enterprise Value/EBIT: -
Headquarters-Country: United Kingdom
Primary Industry: Home Furnishing Retail
4: Casino Guichard / Franprix and Leader price
Announced/Initial Filing Date: 11/12/2009 COMMENTS:
Target/Issuer: 5% Franprix and 25% Leader Price.
Total Transaction Value ($mm USD) 637.18
Buyers/Investors: Casino Guichard Perrachon & Cie SA.
Percent Sought (%): 100
Implied Enterprise Value/Revenues: 0.102
Implied Enterprise Value/EBITDA: -
Implied Enterprise Value/EBIT: -
Headquarters-Country: France
Primary Industry: General Merchandise Stores
5: Sears Canada Holdings / Sears Canada Inc
Announced/Initial Filing Date: 4/22/2010 COMMENTS:
Target/Issuer: Sears Canada Inc.
Total Transaction Value ($mm USD) 559.16
Buyers/Investors: Sears Canada Holdings Corp.
Percent Sought (%): 17.34
Implied Enterprise Value/Revenues: 0.423
Implied Enterprise Value/EBITDA: 4.41
Implied Enterprise Value/EBIT: 5.67
Headquarters-Country: Canada
Primary Industry: Department Stores
IMAP’s Retail Industry Global Report — 2010: Appendix B-iii
KKR, a private equity firm and a leveraged buyout
specialist, whose retail investments include Alliance
Boots, the health and beauty group, has acquired the
UK's largest pet supplies retail chain, Pets at Home,
from rival buy-out firm Bridgepoint Capital.
Pets at Home is the UK’s largest pet accessories
retailer having over 240 stores, and operates 54
veterinary centers. The company had enjoyed rapid
growth and has a significant potential to grow further,
and was the key reason for the acquisition.
Lotte Shopping purchased mega mart and department
store units of GS retail, making room for expansion and
growth in the already saturated industry. The acquired
departmental stores will create synergy [in business]
with existing stores, and Lotte will maintain its top
position in the industry.
Advent International is a global private equity firm. DFS
has grown to become the number one brand in the
UK sofa market with sales of more than three times its
nearest competitor. Advent has been investing in the
retail, consumer products and leisure sectors since
1984 and this is their strategic expansion model..
By acquiring remaining 5% in Franprix and 25% in
Leader Price, Casino Guichard now has full control
of both companies. This transaction would allow the
company to reduce its debt and will give increased
financial flexibility.
Sears Canada Holdings purchased a total of
18,660,880 common shares of Sears Canada Inc.
from Pershing Square, L.P., Pershing Square II, L.P.
and Pershing Square International, Ltd. They now
beneficially own an additional 18,660,880 common
shares. The acquisition is considered to be an
attractive investment.

6: Dufry AG / Dufry South America
Announced/Initial Filing Date: 1/10/2010 COMMENTS:
Target/Issuer: Dufry South America Ltd.
Total Transaction Value ($mm USD) 525.31
Buyers/Investors: Dufry AG.
Percent Sought (%): 48.96
Implied Enterprise Value/Revenues: 1.55
Implied Enterprise Value/EBITDA: 7.87
Implied Enterprise Value/EBIT: 9.82
Headquarters-Country: Bermuda
Primary Industry: Specialty Stores
7: Esprit Holdings / Glory Raise
Announced/Initial Filing Date: 12/17/2009 COMMENTS:
Target/Issuer: Glory Raise Limited.
Total Transaction Value ($mm USD) 500.25
Buyers/Investors: Esprit Holdings Ltd.
Percent Sought (%): 100
Implied Enterprise Value/Revenues: -
Implied Enterprise Value/EBITDA: -
Implied Enterprise Value/EBIT: -
Headquarters-Country: British Virgin Islands
Primary Industry: Distributors
8: GSI Commerce / Retail Convergence
Announced/Initial Filing Date: 10/27/2009 COMMENTS:
Target/Issuer: Retail Convergence, Inc.
Total Transaction Value ($mm USD) 350.00
Buyers/Investors: GSI Commerce Inc.
Percent Sought (%): 100
Implied Enterprise Value/Revenues: 4.22
Implied Enterprise Value/EBITDA: -
Implied Enterprise Value/EBIT: -
Headquarters-Country: United States
Primary Industry: Internet Retail
9: Warburg Pincus / Poundland Ltd
Announced/Initial Filing Date: 5/4/2010 COMMENTS:
Target/Issuer: Poundland Ltd.
Total Transaction Value ($mm USD) 302.32
Buyers/Investors: Warburg Pincus LLC.
Percent Sought (%): -
Implied Enterprise Value/Revenues: -
Implied Enterprise Value/EBITDA: -
Implied Enterprise Value/EBIT: -
Headquarters-Country: United Kingdom
Primary Industry: General Merchandise Stores
10: TNK-BP / Vik Oil Group
Announced/Initial Filing Date: 12/31/2009 COMMENTS:
Target/Issuer: Vik Oil Group.
Total Transaction Value ($mm USD) 294.00
Buyers/Investors: TNK-BP Ltd.
Percent Sought (%): 100
Implied Enterprise Value/Revenues: -
Implied Enterprise Value/EBITDA: -
Implied Enterprise Value/EBIT: -
Headquarters-Country: Ukraine
Primary Industry: Specialty Stores
IMAP’s Retail Industry Global Report — 2010: Appendix B-iv
The merger of a parent company Dufry group
with Dufry South America is basically to establish
a simplified corporate structure with a unified
shareholder base, allowing it the flexibility to seize
growth opportunities.
Esprit China Distribution Ltd (Esprit China), a whollyowned
unit of Esprit Holdings Ltd, acquired the entire
share capital of Glory Raise Ltd from Tactical Solutions
Ltd.
Esprit Holding has acquired Glory Raise as its focus
is on reinforcing its market leadership in its core
consumer businesses, namely retail, beverage, food
processing and distribution, wherein Glory Raise is a
wholesaler and retailer of apparel.
GSI Commerce Inc is the leading provider of
e-commerce and interactive marketing services and
Retail Convergence Inc is a Massachusetts-based
company that operates RueLaLa.com, a leader in
the private sale space and SmartBargains.com,
an off-price e-commerce marketplace. Hence, this
acquisition will give an innovative global e-commerce
platform to GSI Commerce.
Warburg Pincus had bought Poundland, a British
discount retailer, which holds the leading position in
the high-growth, single-price discount-retailing market
in the UK.
Warburg has considered this deal looking at the
immense growth potential expected of the discount
stores in upcoming years.
TNK-BP is a vertically integrated oil company with
a diversified upstream and downstream portfolio
in Russia and Ukraine.
TNK group has consistently invested in the
development of its retail network and the acquisition of
Vik Oil is also part of their development plan.

Appendix C: Growth drivers of online retail industry
The Internet has evolved into an important retail channel, with millions
of online consumers across the globe turning to it to make their
purchases. Despite the financial crisis and recession, the Internet
and other new channels continue to drive long-term shifts in consumers’
purchase behavior and the way products and services are
distributed.
• Convenience, value, and selection – key catalyst for growth: The
online retail channel has consistently outperformed in comparison
to store growth and weathered the recession well because most
consumers are valuing low and transparent prices, convenience,
and comprehensive assortment of goods and services. As per the
survey 1 conducted in the North American region which is the largest
market for online retail, 67 percent of online buyers find the
products online that they cannot find in stores easily; 65 percent
of the US-based Web buyers buy the products online as they
save time by shopping online, and 63 percent of Web buyers find
better deals online.
• Increase in global internet penetration: Between 2005 and 2009,
the global Internet population increased from 1 billion to more
than 1.6 billion and by 2014, it is projected to grow by another 42
percent, reaching a level of 2.3 billion 2 . While Internet penetration
growth does not have a direct relationship with online retail market
growth, online retail market dynamics change as the global
internet penetration changes. Also, rapid expansion in online
population boosts international expansion for most retailers.
- Most of the growth in online population is expected to come
from Asia Pacific, Middle East and Africa regions, which has a
very low internet penetration level of 19.7 percent as of June
2010. These regions will represent 54.9 percent of the online
population in 2014. Compared to this, developed regions such
as North America and Europe will represent 34.1 percent of
total population in 2014 against their proportion of 41.3 percent
in 2009.
- Other emerging Asian countries such as Vietnam and Indonesia
are expected to have nearly 10 percent of global online
users by 2014, but Apple is the only online retailer in the US
which operates a transactional Web site for these countries.
- Furthermore, the level of adoption of online shopping does
not always reflect the level of online spends. For example,
North America has one of the highest online spending rates
1 North American Technographics Retail Online Survey, Q3 2009 (US)
2 Forrester Research, September 2010
IMAP’s Retail Industry Global Report — 2010: Appendix C-i
per person, while the overall penetration of online buyers is
relatively low compared with other markets. On similar lines,
Asian e-Commerce giants such as Japan and South Korea are
climbing the levels in online spending because of improved
access through technology and wider selection of online stores.
These new online shoppers today certainly enjoy a far richer e-
Commerce experience than the consumers had 10 years ago.
- Altogether, the market potential is huge. Online retailers who
want to capture the growing number of online users — and
their growing funds spent online — will need to look beyond the
markets of North America and Europe and think globally about
their online strategies.
• Region wide/customized strategy: In simple words, localization
is expected to boost the online retail market. Traditionally, there
was a tendency among online retailers in terms of not changing
content according to local requirements and languages. This
strategy had its disadvantages in terms of repelling customers
who were not comfortable with the english language and standard
layout across the globe. It catered largely to English-speaking
markets. However, nowadays, online retailers are adopting the
strategy of “Localization” i.e. websites into local languages along
with regional customs — even if with a small amount of content at
first. These retailers are better equipped to take the advantage of
an increasingly diverse global online user base than their counterparts
with English-only Web sites.
- There is a strong preference for local-language content in
European markets like France, while more than 95% of online
users indicate a preference for local-language content in Asian
markets like Japan and Korea 3 . And while 5% of the global
population speaks Arabic, just 1% of online content is estimated
to be available in the language.
- Similar to local language preference, customer behavior and
expectations also vary across countries. A more customized
online strategy is required for regions like the Middle East or
Latin America. Indeed, companies have started operating such
online initiatives tailored to individual markets in the region
along with a local office in the country.
- Strategies of localizing content and understanding online customer
behavior and preference are likely to boost online sales.
3 Asia Pacific Technographics® Survey, Q4 2009

Appendix D: Niche focus areas
M-Commerce (Mobile commerce) 1
- A number of retailers and third-party developers have introduced
mobile applications that give consumers powerful new
shopping tools and added convenience. But most retailers are
either standing on the sidelines or in the midst of planning their
mobile commerce strategy 2 .
- m-commerce which began in the last decade, similar to
mobile banking, has expanded very little. Despite the massive
numbers of mobile users in the US and UK, those using their
phones to make purchases is still few. Tepid demand among
consumers, technological limitations and lack of standardization
in application has constrained the widespread proliferation
of m-commerce. Currently, web-enabled mobile phone users
are using their devices to get weather forecasts, read news,
find movie times and bank online than to buy products.
- While m-commerce is still immature and the least commonly
preferrred customer service channel, retailers are showing
interest in this channel with the idea of getting support from
mobile commerce and promotional efforts. As per a study by
the National Retail Federation in the US, 74 percent of online
retailers either have in place or are developing mobile commerce
strategies, while 20 percent have already implemented
their complete plans.
- Also, people who download mobile applications, including
shopping apps, are a highly coveted consumer segment.
Mobile buyers tend to be repeat purchasers with a higher order
value than the average consumer, and it can be important
for them to complete transactions with ease even if it means
spending more. As per mobile payments firm Billing Revolution,
on-the-go consumers are happy to purchase small-ticket items
like pizza and movie tickets through the mobile. According to
Millennial and comScore research, there is a new retail audience
that can only be reached through mobile and that means
it is imperative to invest now in mobile for this holiday season
or risk missing out on revenue that can only be tapped through
mobile in 2010.
- Hence, a number of recognized retail brands have launched
mobile commerce programs so they can be where their customers
go. In m-commerce, eBay is the outstanding leader with
their iPhone application launched in 2008, and Blackberry and
Android applications that launched in 2009 and 2010. In 2009,
the company saw more than 600 million USD in goods sold via
the mobile application, which was a 200 percent increase from
2008. On new launch, MLB Advanced Media, the Philadelphia
Phillies and Aramark have started allowing consumers to use
their iPhone to order food and have the items delivered to their
seat. Sears has effectively used mobile for customer service
by sending text alerts to confirm that a Web order is ready for
in-store pickup and allowing customers to contact customer
service via their mobile device by SMS, phone, or email.
1 M-commerce is the buying and selling of goods and services through wireless handheld
devices such as cellular telephone and personal digital assistants (PDAs). Known as
next-generation e-commerce, m-commerce enables users to access the Internet without
needing to find a place to plug in.
2 eMarketer Research - Mobile Commerce: Ahead of Its Time
- Going forward, by 2015, shoppers from around the world will
spend about 119 billion USD on goods and services bought via
their mobile phones 3 . In the US alone, mobile shopping rose
from 396 million USD in 2008 to 1.2 billion USD in 2009, and is
forecast to reach about 2.2 billion USD in 2010.
Online grocery shopping
Online grocery shopping has continued to experience a rapid evolution
in recent years, facilitated by the ongoing development of the
internet and related technologies such as mobile communications.
From a consumer perspective, the convenience factor of placing an
order online and having goods delivered to the door is perhaps the
biggest appeal to consumers looking for ways to save time or have
physical difficulty of carrying products.
- The UK is the most developed online grocery market globally,
with 15 percent of adults who have shopped for their groceries
online in 2009. The UK market had grown at a CAGR of 24.9
percent during the period of 2004 to 2009, reaching a level of
7.8 billion USD in 2009 and with expectations of reaching 11.8
billion USD by 2014 4 . Another major market is the US, which is
also catching up with online grocery shopping habits. With its
vast online population, the US tops the online grocery shopping
arena with a total market size of 9.1 billion USD in 2009.
However, the per capita spending is still less for US consumers
when compared to the UK market.
- However, one key difference with grocery products is freshness:
many consumers still prefer to see the produce before
purchase, which remains a significant hurdle for the development
of the online market. Furthermore, the time lag between
placing the order and delivery means that online grocery
purchasing only fits with regular, planned shopping rather than
impulse or top-up shopping.
Online healthcare
• Online healthcare helps online consumers: Nowadays, healthcare
consumers gather information online which includes healthcare
related information and services, looking for doctors, researching
medicines, sharing personal health details and tracking health
conditions for themselves. While consumers are becoming more
self-reliant and empowered, healthcare providers are beginning
to offer their services online and learning how to become more
consumer-focused.
- Given this evolution, online healthcare marketers in the US
have the opportunity to build a bridge between healthcare
providers and patients. It is estimated that the market for Electronic
Health Records will reach about 5 billion USD, by 2015,
according to Kalorama Information. In order to capture this vast
potential, Google and Wal-Mart have together invested significantly
in online healthcare services.
3 Study by ABI Research
4 Datamonitor Research
IMAP’s Retail Industry Global Report — 2010: Appendix D-i

IMAP’s Retail Team
Brazil
Ludimila Mangili
ludimila.mangili@imap.com
Finland
Svante Degerth
svante.degerth@imap.com
Germany
Wolfgang Thiede
wolfgang.thiede@imap.com
Mathias Weidner
mathias.weidner@imap.com
Norway
Asbjoern Myrlund
asbjoern.myrlund@imap.com
Jens Langebrekke
jens.langebrekke@imap.com
Spain
José-María Alberú B.
josemaria.alberu@imap.com
Sweden
Jan-Olof Svensson
janolof.svensson@imap.com
For a comprehensive list of IMAP advisors and to discover how IMAP
can help you with your M&A transaction, go to www.imap.com.
IMAP’s Retail Industry Global Report — 2010: Page 34
United Kingdom
Marc Gillespie
marc.gillespie@imap.com
Gareth Iley
gareth.iley@imap.com

Cross-border M&A requires local knowledge and
experience. IMAP advisors located around the world have
successfully completed thousands of M&A transactions.
Let IMAP help you with your M&A project in 2010.
Other industry reports available from IMAP:
� Automotive & Components Global Report, 2010
� Alternative Energy Industry Global Report, 2010
� Computing & Internet Software Global Report, 2010
� Food & Beverage Industry Global Report, 2010
For copies, visit the “Industries” page of www.imap.com.

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