PowerPoint Presentation

The Coordinates To Merchandising Success

Marshal CohenChief Industry AnalystThe NPD Group, Inc.SPONSOR LOGO

RenovateInvigorateCommunicate

Turn these challenging times into golden opportunities

Text your email address and Marshal to:80565The NPD Group: Industry Growth - Total U.S. Market

3ApparelFootwearHome TextilesSmall Appliances+4.9%AccessoriesToysMobileVideo GamesBeauty2Office Supplies2Auto2-3.8%+2.3%-0.2%+7.2%+10.7%-3.3%+5.7%+8.5%+22.4%-22.3%-12.2%+3.2%N/A+8.8%N/A+2.8%+11.2%In store and Online Online only +12.4%-3.2%+10.9%+7.7%+25.8%+25.4%

Source: The NPD Group/Consumer Tracking Service, 12 months ending, November, 2012

1) Through August 12 - Excludes Wireless. 2) Based on The NPD Group/Retail Tracking Service Year over year growthConsumer Electronics1Its Time

To get rid of old ideas

To use technology to rewrite the rules

To create new traditions

To adapt to the consumer and not expect the consumer to adapt to us

Last yearThe coordinates to merchandising successRenovateInvigorateCommunicate

RenovateInvigorateCommunicate

The coordinates to merchandising successNew traditionsWhere to shopPrice value equation InnovateDifferentiatePrioritizeDirect to consumer Connections Renovate

New traditionsWhere to shopPrice value equation New Consumption Era

Era of moreEra of More More componentsMore communicationMore competitionMore challengingNot just priceGetting your voice heardOutside the industryDistractions More connectionsSharing

New Era of More

One Style -- Many OptionsWhere More Is Heading

More connected devices, more sharing More than 400 million devices are connected in U.S. homes Computers Gaming consoles and Blu-ray Disc players Internet connected HDTVsTablets and Smartphones By the end of 2013, a shift towards more screen-sharing across devices is expected.

Source: The NPD Group/Connected Intelligence, Connected Home Report

Even Dramatically More Part Time Workers

Just Where Is All This Growth Coming From?

Finding Growth Will Be Challenging Time For A RenovationLearning To Do More With LessHeritage Branding

Ask Yourself Do You Have A Brand With A Heritage To Share

Success Goes Well Beyond Heritage Branding

Adoption is often about brand17Source: The NPD Group/Tech Innovation Study, December, 2012; excludes Other and Did not personally buy device.Which was main motivator for purchasing iPhone?17Where Are We Heading

In The World of Big DataYou Need Smart DataCommunicate

Direct to consumer Connections Showrooming

3D RetailingStores SensoryTouch/feelAdd one or twoInternet ResourceResearchConvenience Check price & stock

Ask Yourself How You Can Enhance The In Store Or Online Experience3D Retailing StoresInternetSensoryResourceTouch and feelResearchAdd one or two Convenience check price and stock Ask Yourself How You Can Enhance The In Store Or Online ExperienceShopping apps across age groups

Source: The NPD Group/Connected Intelligence, SmartMeter, October 2012Shopping-related websites are still driving more use than shopping applications overall.

Source: The NPD Group/Connected Intelligence, SmartMeter, October 2012Platform Marketing

MVPMobile Virtual Promotion SystemGlobal ModelGlobal Growth (Vulnerable)Right BalanceDomesticInternational (% Euro/Asian Growth Plan)RetailWholesaleGlobal IssuesFinancialPoliticalEventsTourismCurrency

BlurringChannel 80% Dept Store Now One CategoryNew Found AspirationsDesigners At MassMulti-tier Designer OfferingsOff Price Erosion

Gender DifferencesMen14% of suppers are prepared by men - an all time record high* WomenNow Trading Over

Blurring

Ask Yourself How You Can Shift Marketing To A Broader Appeal*Source: The NPD Group/CREST, National Eating Trends and Annual Food for Thought surveys. Small appliances gain Top Selling Small Appliances During Black Friday Week 2012

Based on. . . Best selling small appliancesDollar sales Upright vacuumsSingle-serve brewing systemsSlow cookersDoubled in sales vs. last yearHome soda machinesLargest increase vs. last yearChocolate fountainsTop growth segments Stick vacuumsBlender/mixer/chopper systems Juice extractorsRobotic vacuumsVacuum sealers

Source: The NPD Group/Weekly Retail Tracking Service, November Week 4 2012 vs. 2011Invigorate

InnovateDifferentiatePrioritizeBuilding innovation in ToysBuilding Sets grew double-digits in 2012

Why? LEGO has driven sales with innovative new product lines that have tremendous appeal to consumers and retailers

Boom Times

DesignersBig BrandsNarrow & DeepRetail RushLean & MeanStrong & Long70s80s90s00s10s13 +Make Strong & Long Work For Your Products

Lease Vs. Own

AutosAircraftFurnitureCarpetJeansApparelAccessories

Longer Term TrendsJean Cycle Decade LongWear Now EraHeel vs. Flats

New Heights Continue116-2-52519-2324109Dollar Sales Percent Growth Flats: Two Years Back For Big Growth So It Is Time AgainAll Heights: Two Year Trends NowSource: The NPD Group/Retail Tracking Service

Heels Are Becoming More Of An Accessory TooHow To Market ?Next Generation HybridsAutosDressy JeansCasual Dress ShoesBrand Associations

How Do You Bring Multi-tiered Product To MarketShapewear Beyond Innerwear

More Bang For The Buck(s)

Cole Haan Injects Technology Into the Sole Of FootwearNeed vs. DesireWant It

Need It

Need Cycle

Create A Communication With Consumers To Remind Them

NoMoPhobia

Get The Passion Back Into The Equation

Priorities For Women In Fashion3Womens613-17218-24825-34-135-44045-54455-6465+1Career BuildingPriority Shifts

Benefits Of Career Wear To This Group Of New Execs? Innovate

Ever Shopped as a Result of Social MediaSource: The NPD Group/E-Commerce Report Mobile Communications

Frequency Tolerance Of Calls/Texts/Messages Are DifferentHow Do You Multi-Tier Your Message Not The Status Quo

De-Tech

5% off The Check If You Check Your Tech at the door

Dont Ignore The Basic Process Of In-Store Selling Without GimmicksFind The Right Balance

Basics vs. InnovationRisk vs. Risk AverseBrand vs. Private LabelDirect To Consumer vs. PartnersRetail Is All About Risk AverseThe coordinates to merchandising successRenovateInvigorateCommunicate

No Risk No RewardKnow Risk Know RewardThanks For Listening

Text Your email address and Marshal to:80565Chart1116-2-52519-2324109

200920102011

Sheet1200920102011Flats116-2Low-52519Mid-232High4109To resize chart data range, drag lower right corner of range.

Chart120802773336739613466346623772971

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Sheet1YesNo55 Plus208045-54277335-44336725-34396118-243466Females3466Males2377Total2971