零售技术行业更新——2023年第三季度

Q3 2023 ATLANTAAUSTINLOS ANGELESMINNEAPOLISNASHVILLESEATTLE Executive Summary Despite economic uncertainty,digital transformation in retail is acceleratingas hybrid shopping, retailautomation, customer experience enhancements, and generative AI drive growth in retail technology‒ The global digital transformation market in retail is growing at a19.3% CAGRand is expected toexceed$1T by 20251 Looking at the broader economic environment, the US economy remains remarkably resilient in the face ofinflationarypressure, decreasingpandemic-relatedsavingsand increasinginterest rates. While manyeconomists had assumed the US would be in the midst of a shallow recession, growth haskept pacewiththe help of strongconsumer spendingand abuoyant labor market. Still, the economy must navigatethrough several obstacles as Fed regulators do all they can tocoolred-hotdemand2 ‒Despite economic headwinds,consumer spendingincreased4%inQ3 2023and was a majorcontributorto the4.9%annualized growth inUS GDPfrom the previous quarter3‒The USlabor marketgained momentum inAugustwith736Kpeople entering thejob market,thehighestparticipation level in3.5 years. However,unemployment spikedto3.8%andwagegrowthmoderatedas theFederalReserve works to control inflation4 Bothcapital raiseandM&Atransaction volume remainlargelysubduedcompared to the peaksexperienced in 2021. In Q3 2023, bothM&Aandcapital raise activity decreased slightlymarking areversal for M&A volume which previously experiencedanupward trend5 ‒There were55 M&Atransactions inQ3 2023compared to58inQ2 2023. Capital raise volumealso decreased slightlywith122transactions inQ3 2023compared to130inQ2 2023 Looking ahead, we expect theretail technology market to stabilize but remain below the elevated2021 levelsas growth subsidies and investors seek quality companies at a discounted valuation‒ However, attractive companies with good operating metrics will continue toreceive stronginterestandoutsized valuations Agenda Industry Overview 1 Transaction Detail 2 3 4 5 Section I IndustryOverview Retail Technology IndustryDrivers & Dynamics Retail Technology Growth Remains Resilient Retail Sales Remain Resilient Despite Economic Headwinds Despite economic uncertainty and rising interest rates, US retail sales have remainedremarkably resilient withSeptember beating Wall Street expectations and increasing 0.7%,the largest increase coming from miscellaneous store retailers and online sales Despite macro headwinds, retail tech continues to grow driven by hybrid shopping,retailautomation, customer experience enhancementsand virtual shopping as well as continuedinternet penetration and growth from emerging economies Consumer Spending Proves To Be Robust eCommerce Sales Are Expected To Rebound This Year After reaching an all-time low in 2022, global retail eCommerce sales growth is nowexpected to rebound in 2023 growing at 8.9%, half of which will come from China While consumer spending remains strong growing 0.4% in August, Americans are savingless and credit-card debt is increasing leading economists to expect spending to decrease Key Industry TrendsTransforming Retail Technology 1 As brick-and-mortar retailers operate in an increasingly competitive environment whereprofit margins are compressing, adopting smart store technologies is vital Retailers are increasing their investments in automationin order toautomate repetitive tasksand reduce labor constraints. The historical labor shortages have fueled the need forautomation within the retail sector1 83%of consumers have usedcontactless payment in the pastyear2 52% of all retail activities can beautomated with existingtechnology Automation can generateincremental margin of 300 to500 basis points 13% expected reduction in storestaff requirement due to taskautomation 57%of respondents wouldchoose a store with contactlesspayment with all else equal2 70% of retail stores plan to deployautomation by 2025 ImmersiveTechnology Customer Experience Consumers are excited to engage with immersive shopping experiences given the potentialtosharply improve their overall shopping experience, forcing retailers to adapt quickly With an increasingly competitive retail landscape, brands and retailers are looking todifferentiate by providing an outstanding customer experience, both in-store and online Solutions Currently Planned ByTopGlobal Retailers4 Artificial Intelligence IsPoised To Transform Retail AI Popularity Has Exploded Recently As It Becomes Ubiquitous Retail Use Cases For AI Demand Forecasting:Predictingconsumer demand to optimizeinventory management Targeted Product Placement:Analyzing audience behavior andtargeting with tailored content The recent surge in AI popularity can be seen through the rapidincrease in Google searches as tools like Chat GPT become commonhousehold names and penetrate even non-technical users Time To Reach One Million Users In-Store Operations:Advancedanalytics can enhance operationsand pr