1. Retail Outlook June, 2010

2. EU25 General Economic Outlook ■ The combined GDP of Western Europe will grow by only about 1.2% in 2010 while in a few countries – notably Ireland, Greece and Spain – the recession will continue. Europe's recovery will generally be more sluggish than previous ones. ■ The need for households to scale back their indebtedness – as well as the prolonged rise in unemployment – will further slow the recovery in consumer spending. ■ Public debt in Western Europe is soaring. In the EU, public debt could reach 100% of GDP by 2014. As recently as 2007, it was equivalent to only 66% of regional GDP. ■ Western Europe is ageing much faster than other regions of the world. By 2050, the pace of growth will be reduced by half a percentage point simply due to the falling number of workers that will be available.

3. EU6 Macro Outlook

4. Global Retail overview ■ Retailing was affected by the downturn ■ Wal-Mart remained the world’s largest retailer ■ Grocery retailing weathered the storm best ■ Most emerging markets survived the downturn better than Western ones ■ Price-oriented retailers were the winners of the economic downturn ■ Internet retailing continued to grow ■ Shopping patterns are expected to be affected in the longer term ■ Growth to hit previously expected levels in 2013

6. International Expansion

9. Virtual and Multi-channel Retail: Bricks to Clicks and Back Again Interplay Between Channels Becoming More Fluid Development into new store formats

11. Retail Channels

12. Retail Channels dynamics

13. Non- Store Retail is growing (EU6) 2009 2013

14. Non – Store Based Retailing (EU6)

16. E-Commerce Leaders

17. Internet Retailing Landscape – UK Top bought items

19. Retailers on Social Networks ■ Collapsed UK store brands Woolworths and Zavvi are using Twitter to maintain brand awareness as they transform into online-only retailers. ■ Zavvi is using the site to advertise products and services on the "new Zavvi", answer questions and gain consumer insight. ■ "team_woolies" tweets are informal and chatty, aiming to maintain the surge of popularity that Woolworths belatedly experienced before its closure, in preparation for the relaunch of the brand online.

20. Department stores outlook Department stores format hard hit by the global economic downturn Emerging markets provide strongest prospects for growth Urbanisation is key to department stores’ growth potential Competition from other channels is high in core developed markets Private label development allows department stores to play to their strengths Department stores should continue to expand their online offer Retailers are taking more control in relationships with concessions The global recession is a kill and cure

21. Department stores outlook