零售技术行业更新——2023年第二季度

Q2 2023 AUSTINLOSANGELESMINNEAPOLISNASHVILLESEATTLE Executive Summary Despite economic uncertainty,digital transformation in retail is acceleratingas hybrid shopping, retailautomation, smart store technology, and generative AI drive growth in retail technology‒ The global digital transformation market in retail is growing at an19.3% CAGRand is expectedto exceed$1T by 20251 Looking at the broader economic environment, easinginflationarypressure, a resilientlabor market,and strong publicequitieshave led some economists to becautiously optimisticthat the US economymay be on a “verynarrowpath” toavoidarecession2. Although a recent McKinsey survey revealed that“global executives are morepositivethannegativeabout conditions”, some economists predict afull-employmentrecession asjob growthremains strong, butoutputandproductivity decrease3, 4 ‒Although US retail sales have remained resilient,Junesaw a mildincreaseof0.2%, lower thanexpected asconsumerscontinue to experienceinflationarypressure5‒The US labor market hascooled offwith only209K jobsadded inJuneand a17.3%decreasein jobpostings. However,demandfor workers remains quitestrong6 Bothcapital raiseandM&Atransaction volume remainlargelysubduedcompared to the peaksexperienced in 2021. In Q2 2023, bothM&Aandcapital raise activity increased slightlymarking areversal for M&A volume which previously experienced a downward trend7‒ There were58 M&Atransactions inQ2 2023compared to50inQ1 2023. Capital raise volumealso increased slightlywith130transactions inQ2 2023compared to117inQ1 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 headwinds and a looming recession, US retail sales have remainedresilient with April and May marking a slight increase as digital sales continue to accelerate,and consumers shift their spending to value chains and discount stores Despite macro headwinds decelerating consumer spending, retail tech continues to growdriven by smart retail, social commerce, and virtual shopping as well as continued internetpenetration and growth from emerging economies Optionality Creates A Highly Competitive Environment The Gap Between eCommerce And Retail Growth Shrinks Despite eCommerce sales growth historically outpacing retail by a large margin, the gapbetween the two is expected to subside as eCommerce growth normalizes The growth in popularity of social media as well as the plethora of eCommerce options hasled to a highly competitive environment where shoppers seek the best deals Key Industry TrendsTransforming Retail Technology 1 Retailers are increasing theirinvestments in automation in order to automate repetitive tasksand reduce labor constraints. The historical labor shortages have fueled the need forautomation within the retail sector1 As brick-and-mortar retailers operate in an increasingly competitive environment whereprofit margins are compressing, adopting smart store technologies is vital 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 Virtual fittingrooms candecreasereturns by36%3 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 Immersive Retail Historical Labor Shortages Consumers’ preference towards AR/VR shopping is expected to drive more brands to adoptthe technology as the shopping experience is transformed and benefits are realized Despite 7 out of 10 retail executives citing labor shortages as their biggest challenge, thenumber of vacant retail jobs in the US has have been steadily decreasing since Mar-225 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 AI-Powered Chatbots:AI chatbotsdeliver personalized support andboost efficiency In-Store Operations:Advancedanalytics can enhance operationsand product placement 5 days Re