Presentation to Indian Retail Forum, 2010 Nick Everitt, Head of Market Intelligence, IGD

Wednesday 29th September 2010

IGD 2010

Understanding the food and grocery industry around the world

Retailing Supply Chain Shopper Insight and Category Management

Delivered via online, conferences, customised training Over 700 members Quality, detailed research based on primary research
Board level links with retailers Regular face to face meetings and local store visits Team of 30 in-house analysts with industry experience:

IGD 2010

Visits to 26 markets so far in 2010..and growing

IGD 2010

Agenda
The evolving global retail landscape Retailer strategies: playing to win Walmart, Tesco and Carrefour in perspective Summary

IGD 2010

Also true for grocery retail performance

2010 grocery retail growth figures (local currencies) - Top 25 grocery retail markets

Source: IGD Research

IGD 2010

Who will be the grocery powerhouses in 2014?

2006 Ran k 1 2 3 4 5 6 7 8 9 10 Country US China Japan France India UK Germany Italy Russia Mexico bn 612 328 297 206 190 188 150 127 116 112 2,326 2010F Rank Country 1 2 3 4 5 6 7 8 9 10 US China Japan India France Russia Brazil UK Germany Italy bn 638 529 345 279 205 186 185 170 160 130 2,827 2014 F Rank 1 2 3 4 5 6 7 8 9 10 Country China US India Japan Russia Brazil France UK Germany Indonesia bn 761 745 448 360 322 284 228 198 168 167 3,681

Source: IGD Research

IGD 2010

Strong profitability of European retailers

Source: Barclays Capital

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But its becoming harder to turn the wheel

Low price productivity loop Lower retail prices

Price increases
Increased customer traffic

Reduced costs and expenses

Cost increases
Improved operating efficiency

Consumer downturn
Higher sales volumes

Source: IGD Research

IGD 2010

Reduce stockholding
Average number of stock holding days in 2009

Source: FCD, Carrefour Analyst Presentation (June 2009)

IGD 2010

In the next three years, which three areas will become MORE important in your trading relationships?
Greater strategic alignment and long-term joint business planning Supply chain efficiency and process improvement Understanding the shopper

Sustainability Price and promotional activity

Balance sheet KPIs such as cash flow and inventory New product launches

Source: IGD Survey of 118 International Manufacturers and 22 Global Retailers

IGD 2010

Vertical integration

Packaging and private label operations

Store based production

Central kitchen Source: IGD Research IGD 2010

Reduce number of items stocked

Source: Morrisons and Carrefour Analyst Presentations (June 2009 and September 2010 respectively)

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Private label growing in many markets

Source: PLMA Private Label Factbook 2009, IGD estimates

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Creating a simple and clear offer (Carrefour)

Source: Carrefour

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Evolution of good, better, best

Source: Mypbrand, IGD Research

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Carrefour reinventing the hypermarket

Source: Carrefour

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Small formats targeting shopper missions

Store segmentation

Blurring of channels

Targeting restaurant spend

Source: IGD Research, Tesco IGD 2010

Retailers entering fourth phase of global growth Early Retrenchment Rapid

Exploration Globalisation

Cautious Expansion

No. of countries of operation

Source: IGD Research

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Key developments: Walmart

Source: IGD Research, Walmart

IGD 2010

Key developments: Carrefour

Source: IGD Research, Carrefour

IGD 2010

Key developments: Tesco

Source: IGD Research, Tesco

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What can we expect for India?

Focus on using local market knowledge and leverage JV ties Strong focus on supply chain and operational efficiencies Tailoring the store format and introducing new solutions Focus on the shopper and meeting their needs Use of private label to reinforce value messages Developing strategic partnerships with suppliers for the
IGD 2010

For more information

Please contact
Nick Everitt, Head of Market Intelligence, IGD +44(0) 1923 851 972 nick.everitt@igd.com

Visit www.igd.com

IGDs Retail Analysis site www.igd.com/analysis

IGD 2010