零售技术行业概述——2023年第一季度

Executive Summary Despite economic headwinds,digital transformation in retail is acceleratingas hybrid shopping, SKUexpansion, supply chain resiliency, and generative AI drivegrowth inretail technology ‒The global digital transformation market in retail is growing at an18.1% CAGRand is expectedto reach$390B by 20261 •Looking at the broader economic environment, The Federal Reserve now anticipates “a mild recessionstarting later this year” withGDPprojected toincreasejust0.4%in20235. This comes as the FederalReserve continues to tighten monetary policy while also trying to mitigate recentturmoilin thebanking sectorand minimize therisk of contagion ‒Although US retail sales have remained resilient,Marchsaw adecrease of-1.0%asconsumersreprioritize their spendingand focus on essential goods instead of discretionaryitems2‒Globalretail eCommerce salesare expected toslowas pandemic-driven growth in 2021subsides, slowing to 9.7% in 20223 •Bothcapital raiseandM&Atransaction volume remainlargelysubduedcompared to the peaksexperienced in 2021. In Q1 2023,M&A activity increased slightlyand leveled off whilecapital raiseactivitycontinued thedownwardtrend experienced in previous quarters4 ‒There were50 M&Atransactions inQ1 2023compared to45inQ4 2022. Capital raise volumedecreasedwith117transactions inQ1 2023compared to182inQ4 2022 •Looking ahead, we expect theretail technology market to remain below the elevated 2021 levelsasgrowth subsidies and investors seek quality companies at a discounted valuation ‒However, attractive companies with good operating metrics will continue toreceive stronginterestandoutsized valuations 1Mordor Intelligence: Digital Transformation Market In Retail2U.S. Census: Advance Monthly Retail Trade Report3eMarketer: Worldwide Ecommerce Forecast Update 2022 Agenda Industry Overview 1 2 3 4 5 Industry Overview Retail Technology Industry Drivers & Dynamics Retail Technology Growth Remains Resilient Retail Sales Waver As Consumers Feel The Pressure From Inflation Although US retail sales have remained resilient, March saw a decrease of-1.0% asconsumers spent less on discretionary spending, including motor vehicles and homefurniture, and spent more on groceries, food services, and health & personal care Despite macro headwinds decelerating consumer spending, retail tech continues to growdriven by smart retail, social commerce, and virtual shopping as well as continuedinternet penetration and growth from emerging economies eCommerce Sales Are Expected To Return To Pre-pandemic Levels Pandemic-driven growth in 2021 is expected to globally subside, slowing to 9.7% in 2022,as inflation adjusted spending and diverging economic stability take hold Percent Change in USSpending2Jan 2021–Oct 2022 1Mordor Intelligence: Digital Transformation Market In Retail2US Census: Advance Monthly Retail Trade Report3eMarketer: Worldwide Ecommerce Forecast Update 2022 Key Industry Trends Transforming Retail Technology Recent supply chain turbulence has caused retailers to rethink their strategy and focuson building resilient infrastructure through increased visibility and flexible fulfilment Change is on the horizon as AI is poised to transform retail and eCommerce with recentadvances in generative AI models and widespread awareness increasing. As fundingfloods into the space, further advancement and adoption are expected3 •Personalized productrecommendations•Monitor & optimize prices•Customer service chatbots•Supply chain & inventoryoptimization Return to Physical Stores Cost Realignment Driven by increasing demand for variety and accelerated by the pandemic, retail marginshave been compressing for nearly a decade leading to the need for a new strategy The pandemic resulted in long-term changes to consumer purchasing behavior. However,as the pandemic fades consumers have begun returning to physical stores leading to aneed for a hybrid shopping experienceImportant Factors New Business Models:brandsare going D2C to cut out retailmiddlemen and increase margins Increasing Efficiencies:with ½ ofexecutives planning to useanalytics for better decisionmaking, technology and IT spendwill play an important role 1Deloitte: Retail Tech Report 20222New York Fed: Global Supply Chain Pressure Index3Forbes: Six Ways Retail Can Leverage AI Retail Technology Unicorn Births Decrease 145Driven by macro factors and recent economic uncertainty, the number of new unicorn births has plummeted as valuationsdecrease and investors deploy less capital and focus more on financial performance The billion-dollar tech unicorn is becoming rareagain. The ultimate symbol of Silicon Valley wealthbecame commonplace. Then the economy shifted–The Washington Post1 Cascadia’s Retail Technology Landscape Cascadia divides the retail technology landscape into four distinct categories. These categories all work together to provideseamless retailexperiences across both digital and physical channels Customer ExperienceEnhanceme