1 Audio Welcome to the Retail Industry Programme This is the first course in the Retail Business College under the Foundation Level Pathway. Today, we will introduce you to Al Futtaim and provide you with some idea of what the Retail Industry is and how it works. Let us first review the learning pathways for the retail business college. Animation: -highlight the RBC logo - transit to the next slide

2 Your Pathway Through The Retail Business Collegeinsert document title Kantar Retail Management Consultants insert year Your Pathway Through The Retail Business College Foundation Developed Advanced The Retail Industry Foundation Of Merchandising Point Of Purchase Marketing Mandatory Developing A Customer Satisfaction Mindset The Evolving Supervisor Personal Leadership AF Basic Selling Guide Building A Customer Centered Business Business Operations For FBM Store Operations Retail Financials Zodiak Business Simulation Foundation Retail Maths Advanced Selling Skills Strategic Business Planning Core Retail Step-Up Supervisor Leading Change Managing Performance Retail Coaching Engaging The Employee & Managing Your Team Leading Self Learning To Lead AF ‘Real Life’ Simulation Audio: The Al Futtaim Retail Business College has been created to deliver a set of Learning & Development interventions designed to execute, integrate and embed global retail business principles. Open to all employees, the business college will develop employees’ business skills through three distinct pathways : Foundation , Developed and Advanced. Each pathway has been mapped to international retail standards and Al Futtaim Competency standards. Al Futtaim Retail employee s will be expected to complete the three mandatory modules at their respective competency level. The Core and Specialist courses will address specific retail business needs. Let us learn more about this course topics Animation: Highlight the 3 distinct pathways to be sync with paragraph 1 and fade Highlight Retail Industry box to be sync with paragraph 2 Category Management Key Account Management Highly Effective Business Presentation Specialist Negotiation Skills Supplier Management Recruit The Best Building A Performance Culture The Future Of Retail doc ref

3 Course Modules About Al Futtaim The Retail Landscape in the RegionIntroduction to Retail Categories Retail Channels Store Formats Key Retail Challenges Organizational Structure Script/Notes The Retail Industry course is composed of eight modules: • The Al Futtaim Group • The Retail Landscape in the Region • Introduction to Retail • Categories • Retail Channels • Store Formats • Key Retail Challenges • Organizational Structure Animation: Fly in the Modules name

4 Course Objectives By the end of the session you will…State the Al Futtaim Mission and Vision Identify the Al Futtaim brands Define the various store functions, job roles and formats Outline key retail business terminology Explain the challenges and opportunities in the industry Audio: By the end of the course you will be able to: • State the Al Futtaim Mission and Vision • Identify the Al Futtaim brands • Define the various store functions, job roles and formats • Outline key retail business terminology • Explain the challenges and opportunities in the industry Animation: transition to the next slide

5 Module I- About Al FuttaimLessons: History Vision and Mission Statements Al Futtaim Brand Portfolio Audio: About Al Futtaim We will cover the following topics within this module: 1) The History of the Al Futtaim Group 2) Vision and Mission Statements 3) Al Futtaim Brand Portfolio Animation: After the slide title, fly in each lesson name

6 Bonded by Tradition, Changed with TimeThe Al-Futtaim Group is an integrated commercial, industrial and service organization, positioning itself as one of the leading real estate development and trading companies in the GCC. Audio: Al Futtaim was founded in the 1930’s as Trading Division. From the 1940s to the 1950s, the organization established itself regionally as a competitor in multiple markets: commercial, industrial and service. Today, Al Futtaim Group is one of the leading organizations in the lower Gulf Region and other countries. Animation: After paragraph 1 Fly In each statement Transition to the next slide Omar Al Futtaim CEO – Al Futtaim Group

7 Al Futtaim Globally Over 20,000 Employees Across 3 Continents Audio:Since the 1930’s Al Futtaim has established itself as a global entity by: • expanding their group across all the GCC countries, parts of Europe and South Pacific regions. • Employing over 20, 000 staff and still growing • Establishing over 65 brands. • The head quarter is located in Dubai but the heart of the operation starts with you,since you are part of the global operation and working in the market. Animation: Transition to the next slide Over 20,000 Employees Across 3 Continents

8 Vision To seek maximum long-term profit as theprimary means to ensure the prosperity of the owner and employees, the well-being of our customers, and the improvement of the UAE people’s living standards. Audio: A successful road trip usually requires a road map to be successful. Essentially, the same is true for any successful business Let us understand what a vision statement is: It is a statement that provides a picture of your company in the future but it’s so much more than that. A vision statement is your inspiration, the framework for all your strategic planning. A vision statement may apply to an entire company or to a single division of that company. Whether for all or part of an organization, the vision statement answers the question, "Where do we want to go?" Al Futtaim’s Vision is to seek maximum  long-term profit as the primary means to ensure the prosperity of the owner and employees, the well-being of our customers, and the improvement of the UAE people’s living standards  Is this the AFG Vision? Animation: Fade in text and sync with audio= “Let us understand what a vision statement is: It is a statement that provides a picture of your company in the future but it’s so much more than that. Your vision statement is your inspiration, the framework for all your strategic planning. A vision statement may apply to an entire company or to a single division of that company. Whether for all or part of an organization, the vision statement answers the question, "Where do we want to go?"” Fade In text and sync with audio =” Al Futtaim’s Vision is to seek maximum long-term profit as the primary means to ensure the prosperity of the owner and employees, the well-being of our customers, and the improvement of the UAE people’s living standards. ” Transition to the next slide

9 Mission Grow sales by addressing market needs and excellence in services Enhance brand equity and awareness through effective marketing programs Achieve lowest cost base, improving Group net profit Continuously improve our employee productivity and management process Attract and retain talented, competent people, and pay them well for their performance – becoming an employer of choice Empower our employees to participate in decision making processes under one business direction Progress significantly in the Emiratization program Be a good, corporate citizen in charity and in protecting the environment Audio: Let t understand What a Mission Statement is A mission statement is a brief description of a company's fundamental purpose. It answers the question, "Why do we exist?" The mission statement articulates the company's purpose both for those in the organization and for the public. While there will be specific missions  by business unit and individuals the Al Futtaim key corporate priorities are: - Growing sales by addressing market needs and excellence in services -Enhance brand equity and awareness through effective marketing programs -Achieve lowest cost base, improving Group net profit -Continuously improve our employee productivity and management process -Attract and retain talented, competent people, and pay them well for their performance – becoming an employer of choice -Empower our employees to participate in decision making processes under one business direction - Progress significantly in the Emiratization program And -Be a good, corporate citizen in charity and in protecting the environment  Animation: Fade in text and sync with audio= “A mission statement is a brief description of a company's fundamental purpose. It answers the question, "Why do we exist?" Fade out text Fade In text and sync with audio =” Grow sales by addressing market needs and excellence in services Enhance brand equity and awareness through effective marketing programs Achieve lowest cost base, improving Group net profit Continuously improve our employee productivity and management process Attract and retain talented, competent people, and pay them well for their performance – becoming an employer of choice Empower our employees to participate in decision making processes under one business direction Progress significantly in the Emiratization program Be a good, corporate citizen in charity and in protecting the environment ” Transition to the next slide Note to the designer: build in the definition of the Emiratisation : Emiratisation is an initiative by the government of the United Arab Emirates to employ its citizens in a meaningful and efficient manner in the public and private sectors

10 Activity Activity Activity – Multiple Choice When was Al Futtaim founded 1940 1930 1950 1960 Incorrect Answer: Al Futtaim was founded  in Between 1940 to 1950 Al Futtaim group has spanned their business in the following areas: commercial, industrial and service organizations. Correct Answer: Also it important to remember that Between 1940 to 1950 Al Futtaim group has span their business the following verticals: commercial, industrial and service organizations.  Necessary to work on the feedback provided with the correct and incorrect answers. Preferably, the questions should provide at least two attempts. On the first incorrect attempt, the feedback should be – no that is not correct, please try again. On the second incorrect attempt, the answer should be provided. This should be the case with all quizzes through-out the module Note to the designer Necessary to work on the feedback provided with the correct and incorrect answers. Preferably, the questions should provide at least two attempts. On the first incorrect attempt, the feedback should be – no that is not correct, please try again. On the second incorrect attempt, the answer should be provided. This should be the case with all quizzes through-out the module Animation: Submit button provide response: Incorrect Answer if user selects the wrong answer Correct Answer if user selects the right answer

11 Al Futtaim’s Business UnitsAUTOMOTIVE ELECTRONICS, ENGINEERING & TECHNOLOGIES FINANCIAL SERVICES REAL ESTATE & CONSTRUCTION JOINT VENUTRES GENERAL SERVICES Audio: Al Futtaim is structured into seven operational divisions Automotive where for every 5 cars purchased, we sell 3 of them Electronics, Engineering and technologies Financial Services Real Estate and Construction Joint Ventures General Services and, Retail Animation: Highlight the business units Transit to the next slide RETAIL

12 Al Futtaim In Retail Interesting Facts…………..There are over 200 Al Futtaim Outlets In The MENA Region (Excluding RSH) A purchase is made from an Al Futtaim outlet every 3 seconds! Audio: Let’s learn some interesting facts about Al Futtaim in Retail: -There are over 200 Al Futtaim Outlets In The MENA Region (Excluding Royal Sporting House. -A purchase is made from an Al Futtaim outlet every 3 seconds -There are more than 26 Retail Brands across the Global Network With more than 26 Retail Brands across the Global Network, Al Futtaim has a vast Brand Portfolio. Animation: After paragraph 1 Fly In each fact Note to the designer: better suggestions Transition to the next slide There are 26 Retail Brands across the Global Network

13 Al Futtaim’s Brand PortfolioAudio: A Brand Portfolio is a group of different brands under a larger umbrella brand owned by a particular business or organization, in our case the Al Futtaim Group. A brand is a Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. A Brand is a promise of consistency and it’s build on trust, reputation and loyalty. The majority of the Al Futtaim portfolio of brands are franchised. A brand franchise is an arrangement between a corporation and a local retailer or wholesaler to function as the exclusive seller for the corporation products within a defined sales territory .  Note: This language could be simpler. Animation: After the Definition of a brand and while explaining the franchised concept Fly In the franchised brand names: IKEA, ACE, Esprit, Guess, Intersport, Marks & Spencer, Toys R Us. Transition to the next slide

14 Al Futtaim Retailers In the RegionAudio Regionally , Al Futtaim Watches and Jewelry along with the Plug-Ins stores, are owned and managed in UAE by the Al Futtaim Group, while ToysRus, Intersport, Ikea, Ace and Marks & Spencers are franchised retailers. Animation: Transit to the next slide

15 Competitors In The RegionAudio: Every retailer needs to be aware of their competitors within their markets.  To ensure we competitor advantage. It's one of the most important points in a business plan and should always be included, even when you're just doing an internal plan. A competitive analysis is your chance to look closely at your market and your competition, to learn what they are doing and why, what are their strengths and weaknesses. The more information you have about your competitors , the better. Know where they're located, what they sell, their prices, their marketing messages, their web addresses and their reputations. Now that you understand why it is important to know who are our competitors let’s do an exercise that defines what we already know about our competitors.  This needs to be rewritten. Animation: Highlight the logo of our competitors. Transit to the next slide

16 Exercise: Competitor ListObjective To build a list of all the competitors that you believe Al Futtaim has and understand why they are competitors Method Choose the Regional Al Futtaim Retailers and the name of the competitors that you think Al Futtaim Retailers has Decide / P[ick for each competitor what you think they are good at and what Al Futtaim can do/is doing to be competitive Time 15 minutes to create the flipchart ideas Note to the designer: build the exercise based on the objectives, method and time frame. Activity Items to match : Clear strategy, easy to do business with, lean processes, commodity pricing, good store location, after sale service, loyal customers, trusted brands, promotions, transparency, successful marketing programs, personalized customer service, innovative, trendy Al Futtaim retailers competitors per retail channel: E-Max & Sharaf DG= Plug Ins, Panasonic; Debenhams= M&S; Hamleys= Toys R US, Damas = Watches & Jewellery, Home Center= IKEA

17 Exercise: Competitor ListCOMPETING WITH WHICH AL FUTTAIM RETAILER WHAT IS THE COMPETITOR GOOD AT? WHAT IS THE AL FUTTAIM RETAILER GOOD AT? Good Mall Locations Large Store at Dubai Festival City At the end of the exercise… Audio: Now that you have completed your competitive analysis’ and identified AF Retail strengths, let’s learn about the Retail Landscape in the region in the 2nd Module of the Retail Industry Introduction course Animation: Transit to the next slide

18 Module II The Retail Landscape in the RegionLessons: Top MENA Region Retailers by Value Mena Population Consumer Spend Audio: The Retail Landscape in the Region 2nd module consists of 3 lessons: Lessons: 1)Top MENA Region Retailers by Value 2)Mena Population 3) Consumer Spend Lets begin with the first lesson: Top MENA Region Retailers by Value Animation: After the slide title, fly in each lesson name Transit to the next slide

19 Top 10 ‘Non Food’ Retailers In the MENA Region By Total SalesInditex (Zara) 1. IKEA 2. 3. H&M Top 10 ‘Non Food’ Retailers In the MENA Region By Total Sales 4. Next 5. Arcadia (Topshop) 6. Lulu (Non Grocery Sales) 7. Mothercare Audio: Sales  value is the amount of money consumers have spent on products at a particular retailer.. Examine each of the retailers listed. Select and place in ascending order the top 10 “Non Food” retailers in the MENA region by total sales. Can you guess right ?  Note to the designer :  If this is a quiz, it will be necessary to provide feedback on unsuccessful and successful attempts. Animation: Highlight and fade the Slide title” the top 10 “Non Food” retailers in the MENA region by total sales. Build in boxes to drag and place the retailers in ascending order. Transit to the next slide 8. Boots Debenhams 9. Limited Brands (La Senza) 10. Source: Planet Retail 2012

20 Population Is Increasing Every Year & Is Expected To ContinueHow Big Is The Pie? Audio: Let us deduce the retail and business opportunities by analyzing the market demand. In market analysis, demand is the amount of a good or service required to fulfill the needs of customers in an area. The spending potential of trade area residents typically determines most of the demand for local retail goods and services. This demand can be modeled using various quantitative measures. The threshold analysis approach provides a measure of the number of businesses within a particular category that could be supported in a community, based simply on its population. Thresholds are typically calculated by dividing the population of the state or country by the number of businesses in the state or country. For example, in 2007 the U.S. population was million and there were 48,000 pharmacies and drug stores in the nation, resulting in one drug store per 6,300 people.  Using this ratio, a trade area with a population of 10,000 could support between one and two drug stores There are two general methods to quantitatively measure demand for your community: “population threshold” and “market potential”; based on the Planet Retail 2012 survey data the population in the region is steadily increasing so the opportunity to bring in new customers is there. Animation: Note to the designer: I would suggest that further animation will be required here to explain this concept. Highlight and fade the 2013, 2014, 2015 graph bar. Transit to the next slide Source: Planet Retail 2012 Population Is Increasing Every Year & Is Expected To Continue

21 What Are People Spending Their Money On In The Region?Audio: Based on another survey conducted by Planet Retail in 2012, you can see that although the total amount being spent is increasing, the estimated “share of wallet” - the percentage "share" of a customer's expenses "of wallet" for a product - is expected to stay in roughly the same proportion. Animation: Highlight and fade in the products/services spending – e.g. DIY Transition to the next slide Source: Planet Retail 2012 People Spend Their Money On Different Types Of Retail Products. This Split Is Called ‘Share Of Wallet’

22 Module III Introduction to RetailLessons: Definition of Retail How Retailers make money Terminology of Who’s Who In-store Path to Purchase in Retail Audio: Now that you’ve learned about the Retail Landscape in the Region , lets continue the course with the 3rd module: Introduction to Retail . This module consists of 4 lessons: Lesson 1)Definition of Retail Lesson 2) How retailers make money Lesson 3) Terminology of Who’s Who Lesson 4) The path to purchase in Retail Lets begin our first lesson with the Definition of Retail Animation: After the slide title, fly in each lesson name Transit to the next slide

23 What Is Retail? “Retail is theatre and a ringing cash register is the applause.” Gordon Segal Co-Founder of Crate & Barrel Audio: Retailing is one of the fastest growing segments of the economy. As one of the nation’s largest employers, the retail industry provides excellent business opportunities. Retailers provide the goods and services you and I need—from food, auto parts, apparel, home furnishings, appliances, and electronics to advice, home improvement, and skilled labor. As so famously quoted by Gordon Segal the co-Founder of Crate & Barrel, “Retail is theatre and a ringing cash register is the applause.” Let’s take a behind the scenes look at the many facets of this exciting business. Animation: After the slide title fly in the quote and transit to the next slide

24 What Is Retail? A Fixed Location Stocking Multiple ProductsSelling those products Audio: Simply put, Retail is the process which involves a fixed location, stocking multiple products, selling those products for use by someone. Animation: After the slide title fly in the definition boxes in descending order (top to bottom) Transition to the next slide For Use by someone

25 How Is A Retailer Made Up?RETAIL GROUP e.g. Al Futtaim RETAILER e.g. Toys R US Audio: As you previously learned, most retailing involves buying merchandise or a service from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use. So, who is a consumer? What is, a supplier? Who are they and what is their role in retail? How do they work together A SUPPLIER is the Company who supplies the goods to the store – the Supplier can be a Principal or a distributor; a distributor will buy stock from the supplier or principal and then sell it on to his customers at a mark-up . a PRINCIPAL, sometimes can also mean MANUFACTURER. A RETAILER is the Company who sells the goods in the store – the Retailer can be a Group Retailer like Al Futtaim or a Principal like Ikea A SHOPPER and a CUSTOMER is the person or people who visit the Retail store to purchase products A CONSUMER is The person or people who use the product that has been purchased .  This is about as clear as mud Animation: After the slide title fly in the retailer structure in descending order –top to bottom. OUTLET e.g. Toys R US Festival City

26 How Retailers Make MoneyMore Customers Spending More Often X = X Revenue & Profit GROWTH Audio: Script/Notes Most retailing involves buying merchandise or a service from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use. This is how retailers get ‘money in’. How much they make is dictated by what they sell things for in comparison to what they have bought them for and ‘money out’ will be dictated by things like paying staff salaries, marketing and store maintenance among other expenses. The price charged for the goods or services covers the retailer’s expenses and includes a profit. Of course making an overall profit rests heavily on the ‘3 More equation’: More customers who spend more and more often, so the bottom line is that without customers a retailer won’t make money. If that's so, how can a retailer attract more customers who spend more and more often? In your job role, how can you influence the 3 more equation? Please choose from the actions list and drag into corresponding boxes: Think about ‘What can you influence? What can Al Futtaim influence? How can Al Futtaim influence it? What external factors might influence these variables ? Of course, at the heart of it all, Great Customer service is the key to long time profitability and success. Note to the designer: build up the action list as below Advertising Promotions More Locations Spending More Good Products Good Merchandising Good Environment More Often Loyalty Schemes New Products Better than competition Location Animation: Highlight the = Revenue & Profit / Fade in GREAT CUSTOMER SERVICE! Transit to the next slide Advertising Promotions More Locations Good Products Good Merchandising Good Environment Loyalty Schemes New Products Better than competition GREAT CUSTOMER SERVICE!

27 Definition of Who’s WhoPRINCIPAL e.g Hasbro The Company who supply the goods to the store. SUPPLIER DISTRIBUTOR e.g Sandgate GROUP e.g Al Futtaim The Company who sells the goods in the store. RETAILER PRINCIPAL e.g IKEA The person or people who visit the Retail store to purchase products SHOPPER Audio: As you previously learned, most retailing involves buying merchandise or a service from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use. So, what is a consumer, a supplier? Who are they and what is their role in retail? Where do they meet? A SUPPLIER is the Company who supplies the goods to the store – the Supplier can be a Principal or a distributor; a distributor will buy stock from the supplier or principal and then sell it on to his customers at a mark-up while a PRINCIPAL, sometimes can also mean MANUFACTURER. A RETAILER is the Company who sells the goods in the store – the Retailer can be a Group Retailer like Al Futtaim or a Principal like Ikea A SHOPPER and a CUSTOMER is the person or people who visit the Retail store to purchase products A CONSUMER is The person or people who use the product that has been purchased . Animation: Highlight the definitions in descending order (top to bottom) Transit to the next slide CUSTOMER CONSUMER The person or people who use the product that has been purchased CONSUMER

28 So where do these different entities play in our Definition of Retail?SUPPLIER A Fixed Location Stocking Multiple Products RETAILER Selling those products in store SHOPPER CUSTOMER Audio: Now, Linking back to the “What is Retail?” lesson, where do these different entities play in our Definition of Retail? A Fixed Location Stocking Multiple Products is the SUPPLIER and/or RETAILER Selling those products in store to the SHOPPER and/or CUSTOMER For Use by someone who is a CONSUMER Animation: Highlight the definitions in descending order (top to bottom) Transit to the next slide For Use by someone CONSUMER

29 Who’s Who For Retailer & Supplier?For Supplier CUSTOMER Person who buys Retailer e.g Al Futtaim SHOPPER CONSUMER Person who uses Audio: So, who’s who for Retailer & Supplier? For a Retailer, the Customer & Shopper is the same person but for a supplier the Customer is the Retailer and the shopper is the person who buys. The customer is the person you are selling to, people who come into the store to buy products but for a supplier this is you, because they are selling the products to you. The shopper is the best way to refer to your customer when talking to supplier because then you know you are both talking about the same thing. Animation: Highlight the definitions Transit to the next slide

30 In the following pictures are the subjects in the picture most likely to be shoppers or consumers?Audio: Now, lets ensure that you are able to distinguish a shopper from a consumer, by identifying if in the next 5 slides who is a consumer, a shopper or both. Animation: Transit to the next slide

31 1. SHOPPER OR CONSUMER? CONSUMER Animation:Upon correct identification Audio: Yes, the subject is too young to be a decision maker and budget holder, therefore is a consumer. Animation: Transit to the next slide CONSUMER

32 2. SHOPPER OR CONSUMER? SHOPPER Animation: Upon correct identificationAudio: Yes, the items being purchased are most likely for someone else, therefore the subject is a ‘shopper’ Transit to the next slide SHOPPER

33 3. SHOPPER OR CONSUMER? CONSUMER Animation:Upon correct identification Audio: Yes, the subject in this picture is a consumer as the ‘consumer’ is a much wider pool of subjects! Transit to the next slide CONSUMER

34 4. SHOPPER OR CONSUMER? & SHOPPER CONSUMER Possibly Animation:Upon correct identification Audio: Yes, the subject is a shopper and possibly a consumer as often the shopper and consumer can be the same person. Animation: Transit to the next slide SHOPPER & CONSUMER Possibly

35 5. SHOPPER OR CONSUMER? CONSUMER Animation:Upon correct identification Yes, the subject is most likely to be the consumer as thie item is wrapped as aa gift; it is therefore probable the subject did not shop and buy the item herself. Audio: Animation: Transition to the next slide CONSUMER

36 Where do they all meet? SHOPPER INTERFACE RETAILER Meets SHOPPERBUSINESS INTERFACE RETAILER Meets SUPPLIER Audio: So, where does a retailer meet a shopper or a supplier ? When a retailer meets a shopper that’s called SHOPPER INTERFACE; when a retailer meets a supplier that’s called BUSINESS INTERFACE; when a consumer meets a shopper that’s called CONSUMER INTERFACE. The shopper interface is most likely to take place in your store with the exception of the emerging on-line retail where this interface could be anywhere. The business interface usually takes place at the Retailers premises. And, the Consumer interface usually takes place anywhere where the eventual product is used. What activities do you think are happening in their given interface? Who, in terms of specific job roles might be involved at that interface? Where do you think that any activity might be taking place? Choose from the selected list of activities and job roles and match them to their given interface: For the designer : build a list of activities, locations, job role as per the bellow Q&A context Shopper Interface Who is involved? – the shopper – groups, individuals, families ; the retailer- sales assistant, store manager, store supervisor, cashier, customer service representative Activities that might be taking place? – questioning about a product, description and demonstration of a product, handling payment, complains or suggestions Where it might take place? – in the store face to face, over the phone 2. Business Interface Who is involved? – the retailer- inventory assistant, warehouse assistant, buyer manager, category buyer; the supplier- supplier account manager, supplier senior manager, functional specialist Activities that might be taking place? – questioning about a product, description and demonstration of a product, handling payment, signing a contract, negotiating terms and conditions Where it might take place? – in the office face to face, over the phone or s, in the warehouse 3. Consumer Interface Who is involved? – the consumer – a family member, a friend, a business partner; the shopper – a family member, a friend, a business partner, a retailer employee Activities that might be taking place? – questioning about a product, description and demonstration of a product, handling payment, trying the product, feedback Where it might take place? – in the office face to face, over the phone, in the warehouse, at home Animation: Highlight and fade in the interface description Build an exercised based on the above context Transit to the next slide CONSUMER INTERFACE CONSUMER Meets SHOPPER

37 The Path To Purchase In RetailCONSUMER SHOPPER CONSUMER Audio: There is a tremendous amount of research available on why people buy what they buy, what attracts shoppers to a store and how you,asa retailer, can increase the purchaseof products The in-store Patch to purchase l will help you identify what attracts shoppers to your store, what factors influence a customer’s decision to buy or not to buy. Let us classify those factors which influence a customer’s decision to do business with us. Step 1 – Understand and Generate Demand. To understand and generate demand, the retailer builds marketing campaigns that leads to product, promotions and business awareness, creating a reason to buy. STEP 2 – Choosing the outlet. In this step the retailer needs to consider the factors that will affect a customer decision These factors include loyalty, quality, location, convenience, facilities and awareness. In STEP 3 –Shopping the store, the product merchandising, the store layout and helpfulness of the staff will influence the customer shopping experience and eventually their decision to buy or not to buy. STEP 4- Selecting the products, also known as the “moment of truth” is the point when the customer decides if they still want to buy and which product they will buy. As you may have concluded by now, at each step, there is a decision point to move the shopper closer to a buying decision, or compelling them to move on. STEP 5, often referred to as “the second moment of truth” is where the product gets used. At this point the consumer decides if they like it and if they might buy it again. It is also a point where they might endorse the product and ‘spread the word’ encouraging other people to buy it as well. Now let us determine Which steps you think takes place inside the store? Choose and drag the answer in its correct box Note to the designer : build a list of answers as per the below context Steps 3 & 4 Which steps is the retailer able to influence most and which steps is the supplier/manufacture able to influence the most? Steps 1 & 5 Supplier/Manufacturer Steps 2 – 4 Retailer Which departments of your business or the suppliers business are most involved in….. Step 1 – Marketing, Merchandising Step 2 – Branding, In-Store Staff (good customer service is a big pull factor) Step 3 – In-store staff & store designers (flow, direction & signage around the store) Step 4 – In-Store staff, merchandising & manufacturer packaging (product knowledge from staff & attractiveness of product from supplier) Step 5 – Supplier/manufacturer innovation & marketing teams Animation: Highlight each step Choose and drag the answer in its correct box activity Note to the designer : build a list of answers as per the above context Transit to the next slide The Moment Of Truth!

38 Module IV - Categories Product Categories in RetailLessons: Product Categories in Retail Introduction to Categories Sub Categories Why do we have categories in Retail Audio: Now that you’ve completed the “Introduction to Retail” module , lets continue the course with the 4th module: Categories . This module consists of 5 lessons: Lesson 1) Product Categories in Retail Lesson 2) Introduction to Categories Lesson 3) Store Categories Lesson 4) Sub Categories Lesson 5) Why do we have categories in Retail Lets begin our first lesson with the Product Categories in Retail Animation: After the slide title, fly in each lesson name Transit to the next slide

39 Categories & Why We Have ThemAudio: A store usually contains groups of products that have similar functional properties. These groups form Categories in the store. As stores become larger and larger, the number of products and different types of products that a retailer stocks is also becoming larger. This can create a very confusing situation for a shopper if they cannot easily find what they want. The overall scope of a category will also differ from retailer to retailer, so that, for example, whilst one retailer may consider "baked beans" to be a category in its own right, another may consider it as merely a sub-segment of a broader category of "canned vegetables". Animation: Fly in the confused customer picture Transit to the next slide

40 Store Categories . : EXAMPLE CATEGORIES Audio:Here is an example of a large store and the retailer has segmented all the products into groupings of similar items like fashion, home, grocery and garden. This is very important as most shoppers come to the store with a mission of buying a certain type of product. We need to make that as easily as possible for them by creating categories in the store. Imagine if you went to this store and categories did not exist. How would you find a pair of jeans? Without categories the pair of jeans could be mixed in with food, garden, furniture, mobile phones and other things. So retailers have categories to make the store easy to shop and easy to merchandise too. Now, let’s ensure that you are able to identify product categories by classifying the products category in the following pictures: Animation: Note to the designer: The attendees needs to circle the categories in the store using the available yellow circle Now, lets ensure that you are able to identify product categories by classifying the products category in the following pictures: Animation: Move to the next slide

41 What is the category here?Pillows? Textiles? Home? Audio: Select the displayed merchandise category: Animation: Correct answer: HOME Transit to the next slide

42 What is the category here?Kitchen? Crockery? Home? Audio: Select the displayed merchandise category: Animation: Correct answer: Kitchen Transit to the next slide

43 What is the category here?Kitchen? Washing? Appliances? Audio: Select the displayed merchandise category: Animation: Correct answer: Appliances Transit to the next slide

44 How Many Categories are here?Audio: Select the displayed merchandise category: Animation: Correct answer: Cartridges, Home Theaters, Panels, Audio Components, Cables & Mounts Transit to the next slide

45 Categories ImplicationsThe more specialist the store, the more specialist the category Implications Shoppers will probably expect a higher level of specialist knowledge in more specialist stores Shoppers will often know what they want to buy in specialist stores so we need to direct them to the right category for their requirements We may only work in one section or category but we need to be aware of all of them so we can direct customers effectively Audio: The more specialist the store, the more specialist the category and the implications for us, the retailers, are quite extensive since the shoppers are more likely to expect a higher level of specialist knowledge from retailers in more specialist stores. Shoppers will often know what they want to buy in specialist stores, so we need to direct them to the right category for their requirements. You may only work in one section or category but we need to be aware of all of them so we can direct customers effectively. Animation: Highlight the implications Transit to the next slide

46 Sub Categories In a Specialist Retailer, the Master-Categories might be more specific: Example: PLUG-INS MASTER CATEGORY COMPUTERS SUB CATEGORES HARDWARE SOFTWARE DESKTOP PC’S OPERATING SYSTEMS SEGMENT LAPTOPS TABLETS EDITING ANTI-VIRUS Audio: As well, In more specialist stores the master categories might be more specific and sometimes this is what guides the decision process made by shoppers. In this example we have a master category of computers but some people might be looking for a physical device and some might be looking for something to put on their current device. Knowing how people make decisions allows us to create a sub category to split them down to hardware and software. But even then, there are still a number of products with similar properties and we group these together into segments as for example putting all laptops together. In summary Product categories may also contain subcategories enabling storekeepers to manage their products in as much detail as possible. Animation: After the 1st paragraph Highlight the Plug-ins example Transit to the next slide

47 Why Do We Have Categories?SHOPPER REASONS OPERATIONAL REASONS ANALYTICAL REASONS Makes it easier for them to find products Makes it easier for them to compare products Could help them buy more products Helps us Merchandise products easily Enables us to train category specialist staff Helps us direct shoppers easily Ensures we can organize sales data Allows us to compare similar products with market average Helps us identify trends so we know where to focus Audio: Now that you are able to identify and define product categories, let’s review a list of reasons why we have categories? The 1st motive is SHOPPER REASONS: It makes it easier for them to find products; It makes it easier for them to compare products; It could help them buy more products 2nd motive is OPERATIONAL REASONS: Helps us Merchandise products easily; Enables us to train category specialist staff; Helps us direct shoppers easily And a 3rd motive is ANALYTICAL REASONS: Ensures we can organize sales data; Allows us to compare similar products with market average; Helps us identify trends so we know where to focus. Animation: Highlight each reason Transit to the next slide

48 Module V – Retail ChannelsLessons: Type of Retail Channels Channel Growth in MENA region Market Share Audio: Now that you’ve completed the “Categories” module , lets continue the course with the 5th module: Retail Channels . This module consists of 2 lessons: Lesson 1) Type of Retail Channels Lesson 2) Channel growth in MENA region Lesson 3) Market Share Let’s begin our first lesson with the Types of Retail channels Animation: After the slide title, fly in each lesson name Transit to the next slide

49 Retail Channels A channel can broadly be defined as a grouping of purchase locations of similar size, strategy and product mix. EXAMPLE Split of Retail Channels: Large-scale stores with multi-level merchandise mix focused on fashion, apparel & home goods DEPARTMENT STORE Stores that focus on the specific category of clothing and fashion as their dominant mix APPAREL Stores selling predominantly a particular specialist product mix e.g. Electronics or Furniture CATEGORY SPECIALIST Large stores that range from 100,000 sq ft to 200,000 sq ft with food sales accounting for more than 50% of revenue HYPERMARKET Audio: As you have learned, total assortments can sometimes be broad with a wide number of categories in a department store or narrow with a specialist category, such as a Panasonic Store. Understanding the split of these types of stores is important so that we can, - Recognize trends within a particular type of store so we can plan where to invest in new outlets - Measure shopping behavior across different types of stores so we get some insight on how to merchandise similar stores and to - see share of wallet because shoppers will shop across all channels but we may only operate in 1 or 2 Let’s identify a split example of Retail Channels: A Department Store is a large-scale store with a multi-level merchandise mix. This cold focus on fashion, apparel & home goods Examples include M&S and Debenhams. Apparel stores are stores that focus on the specific category of clothing and fashion as their dominant mix e.g Zara, Mango Category specialist Stores predominantly sell a particular specialist product mix e.g. Electronics or Furniture for example IKEA Hypermarkets are Large stores that range from 100,000 sq ft to 200,000 sq ft with food sales accounting for more than 50 percent of revenue An example of a hypermarket would be Hyperpanda Supermarkets are Medium sized stores that range from 10,000 sq ft to 60,000 sq ft with food representing between 75% & 90% of revenue for example Spinneys. Convenience are Small stores that range from 500 sq ft to 5,000 sq ft with food representing about 50% of revenue and for example Grocery stores Pharmacies are Small stores selling prescription and non-prescription drugs as their dominant product mix e.g Maya Now that you are able to define retail channels please choose from the list of stores names and match them to the retail channels description Animation: Note to the designer: Build a list of stores name based on the e.g. provided Highlight the retail channel type and definition Transit to the next slide Medium stores that range from 10,000 sq ft to 60,000 sq ft with food representing between 75% & 90% of revenue SUPERMARKET Small stores that range from 500 sq ft to 5,000 sq ft with food representing about 50% of revenue CONVENIENCE Small stores selling prescription and non-prescription drugs as their dominant product mix PHARMACY

50 Channel Growth In The MENA RegionSales in Millions of USD Compound Annual Growth Rates 2009 2010 2011 2012 E 09-'11 CAGR 11-'12 CAGR Apparel 7,603 9,999 12,245 14,498 26.9% 18.4% Category Specialist 25,761 2,929 32,301 35,983 12.0% 11.4% Convenience 1,158 1,294 1,443 1,631 11.6% 13.0% Department 7,801 9,892 10,693 11,277 17.1% 5.5% Online Retail - 12 N/A 100.0% Hypermarket 71,502 78,725 93,270 108,718 14.2% 16.6% Supermarket 66,966 73,307 82,176 92,795 10.8% 12.9% TOTAL GCC 180,791 176,145 232,128 264,914 13.3% 14.1% Audio: So, where do the Al Futtaim channels position themselves in the MENA region? Well, based on Kantar Retail IQ 2012 data the channels that al Futtaim work in are all Growing! Animation: Note to the designer: allow the attendees to view the definition of CAGR : The year-over-year growth rate of an investment over a specified period of time. The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered. Highlight the highest CAGR % Transit to the next slide Source: Kantar Retail IQ 2012 The Channels That Al Futtaim Work In Are All Growing!

51 What Is Market Share? Market Share is the contribution (as a %) of users of a particular brand in comparison to the overall category. It can also be the contribution (as a %) that a retailer contributes to the overall channel. Category Example: GLOBAL SMARTPHONE CATEGORY Source: Strategy Analytics Audio: As pointed out in Module I, every retailer needs to be aware of their competitors and this would include information on competitive analysis and Market share. Market share is, broadly speaking a measure of how much of the total sales of a certain type of product are coming from different retailers. So if there are 100,000 people in Dubai who buy toys then as Al Futtaim we want all 100,000 people to buy their toys from Toys R us. And that would mean that we have 100% market share. But the reality is that this will not be the case as they have a choice So perhaps half buy their toys from Toys R US which means that our market share is 50% and therefore our competitors make up the other 50%. In this example, Market Share data is based on Smartphone product sales as a % of a total global category value. This is an example of what a market share might look like for a particular category. This also shows the growth of the overall category, useful for retailers to see so that they can: - Inform the shoppers about the trends in the market - Determine shelving arrangements - maximize sales with the right product mix and - Make product range decisions for example if the market share of a product is decreasing below a certain level then is it worth selling it in store?. Animation: Note to the designer – the attendees needs to choose the circled in red % Highlight the definition of Market share Transit to the next slide

52 Module VI – Store FormatsLessons: Different Store Formats Why do we have store formats Audio: Now that you’ve completed the “Retail Channels” module , lets continue the course with its 6th module: Store Formats This module consists of 2 lessons: Lesson 1) Different Store Formats Lesson 2) Why do we have store formats Lets begin our first lesson with the Different Store Formats Animation: After the slide title, fly in each lesson name Transit to the next slide

53 Store Formats Audio: For decades, global retailers have pursued a strategy of big is best, that larger stores located out of town are more cost efficient to build and maintain and ultimately more convenient for consumers (one-stop-shopping). Now leading retailers across the globe are challenging this notion by expanding their business’s into smaller formats or more specialist stores like for example Lulu has created a store with a smaller number of items that might be considered to be a top up shop. Mark and Spencer in the United Kingdom has created a store just selling food, Simply Food. Toys R Us has created stores that are only containing the category of “Babies”. Animation: Highlight the Al Futtaim smaller store format Transit to the next slide

54 Store Formats What Can Change in Different Formats?Why do Retailers Have Different Formats? Extends and targets specific neighborhood catchment areas Range can be tailored to the demographics of locality or the proposition of the format Items are often sold with a higher front margin, increasing category profitability Maintains shopper loyalty when shoppers need ‘top up’ items or ‘forgotten’ items Size of the Store Location / Geographical Placement of the store The Range /Assortment within the store Price of items in the store (sometimes) Layout of the store Branding of the store Audio: To understand what is different between stores formats, we will review what things might change between store formats and why retailers have different store formats. let’s identify what can change in a Different store format: the Size of the Store, the Location the Geographical Placement , the Range the Assortment, the Price of items, the Layout and Branding of the store. \ Most retailers choose to have a different format so that they can extend and target specific neighborhood catchment areas and to have a range that can be tailored to the demographics of the locality Additionally some retailers due to a different store format often  sell items with a higher front margin, to increase category profitability, and Maintains shopper loyalty as in the case when shoppers need ‘top up’ items or ‘forgotten’ items. The Key message here is that it is important to understand why you are selling what you are selling and to recognize that if you are working in a smaller store, you may be able to have a conversation with a customer about other solutions for customers at other Al Futtaim stores. Animation: Highlight the list of actions/reason as what can change in different format and why do retailers have different formats Transit to the next slide

55 Module VII – Key Retail ChallengesLessons: Retail Challenges Supplier challenges Key MENA specific challenges Implications for Al Futtaim Audio: Now that you’ve completed the “Store Formats” module , lets continue the course with its 7h module: Key Retail Challenges This module consists of 4 lessons: Lesson 1) Retail Challenges Lesson 2) Supplier challenges Lesson 3) Key MENA specific challenges Lesson 4) Implications for Al Futtaim Lets begin our first lesson with “Retail Challenges” Animation: After the slide title, fly in each lesson name Transit to the next slide

56 Key Retail Challenges RETAILER ISSUES PATH TO PURCHASE™What will drive shoppers to my store? How do I address shopper need states/occasions to drive category growth? How do I retain shopper loyalty in the midst of rising commodity prices? How do I communicate with shoppers most effectively both in and out of store? PATH TO PURCHASE™ Audio: As the market is maturing and growing, the challenges that Retailers face are becoming more complex and at the heart of all this is the customer. . The retailers have to understand more about what will drive shoppers to their store, How can they address shopper needs and state occasions that drives category growth, How can they retain shopper loyalty in the midst of rising commodity prices and How can they communicate with shoppers most effectively both in and out of store? In this module, you will analyze common challenges faced by and MENA region retailers and suppliers. Animation: Highlight the retailer issues Transit to the next slide

57 There is Pressure On RetailersRetailer Pressure Points SHOPPER UNDERSTANDING RE-INVENTION & INNOVATION OPERATIONAL COSTS COMPETITION, & REGULATIONS Audio: Most retailers are facing challenges in 4 key areas: The 1st challenge is Shopper Understanding. As customers become more Price conscious, they have higher customer service expectations The 2nd challenge is Innovation. Retailers can innovate by opening New store formats, Developing other markets such as food service in IKEA, and investing in Shopping on-line. Competition, Economic and Regulations Factors is yet another challenge due to Global competition, Ambitious retailers, Legislation and City expectations for public companies. The 4th challenge is Operational Costs, which can be driven by new store developments, Increasing store operating costs and high fuel prices for logistics Animation. Transit to the next slide Highlight the pressure points

58 There Is Pressure On SuppliersSuppliers Pressure Points COMPETITIVE RETAIL LANDSCAPE OPERATIONAL COSTS SHOPPER UNDERSTANDING TRADING TERMS Audio: Suppliers are also facing challenges in four areas. The first challenge is the Competitive Retail Landscape. This challenged is influenced by Competitors’ Market Share, Changing Consumers, Private Label Brands, Legislation and City expectations for public companies  Operational Costs is the 2nd supplier challenge due to Wastage, Bad Debts, Innovation and Technology Improvement Requirements. the supplier’s 3rd challenge is Trading terms since retailers expects flexible Trading Terms, with greater Margin and Extended Credit Days . Shopper Understanding is the suppliers’ 4th challenge. as retailers are expecting Better Services and Higher Quality Products. Animation: Highlight the supplier pressure points Transit to the next slide

59 Key MENA Specific Retail ChallengesDiverse Mix Of Cultures Increasing Shopper Expectations Denser Competition Audio In the MENA Region, the challenges can a slightly more specific as the market expands and the influx of retail brands descends in the region. One of the most talked about challenges is the Diverse mix of cultures due to globalization; globalization is everyone's challenge and even more in the MENA region where a diverse mix of culture is at its highest in the world. As a result, retailers in the region are putting a significant amount of effort in understanding Different Shopping Behaviors and Customer Needs. 2nd challenge in the region is the Increased Shopper Expectations: Customer expectations are the needs, wants, and preconceived ideas of a customer about a product or service. Customer expectation will be influenced by his or her perception of the product or service and can be created by previous experience, advertising, hearsay, awareness of competitors, and brand image. And as you probably experienced by now, our Shoppers are expecting global customer service models & beyond and that expectations are reflected in the evolving Path to purchase model – the on-line shopping. The 3rd challenge is Denser Competition due to new mall openings and International Brands well represented that results in huge choice. While we can't control what your competitors do, we can minimize their impact on your business . It's all about standing apart from the rest and the first step towards differentiating ourselves from the competition is by using our unique role to help buyers make their purchasing decisions efficiently. This, above all else, will be our differentiator above and beyond any product and service we could offer. Animation: Note to the designer – to learn more - input the definition of globalization Globalization is a common term for processes of international integration arising from increasing human connectivity and interchange of worldviews, products, ideas, and other aspects of culture. Highlight the key MENA specific challenges Transit to the next slide

60 Working With Different Culturesxpect to get it wrong at first M ake an effort to learn about other cultures B ody language has to be appropriate R esist only forming relationships with similar cultures A sk questions to your colleagues (the best way of learning) Audio: The MENA region, is a place where a number of cultures from around the world come together to work. Whilst this presents a great experience to us to learn about other cultures, the differences in cultural norms can sometimes present challenges and retailers need to be aware of the best way to approach these situations so that we can work harmoniously as a team. To do that retailers must embrace the opportunity to work and live with different cultures, to Expect to get it wrong at first but learn and deal with situations appropriately. We need to Make An Effort to learn about other cultures. This is not a requirement of our roles but more a behavior and a discipline that, if achieved, will make our roles easier and more fulfilling. We have to be aware of Our Body Language as There are certain cultures where a particular type of body language is inappropriate. Take time to learn about these variances and ensure that you are disciplined to look out for times where we need to pay more attention to our body language. Although sometimes is comfortable’ to only mix with people from our own countries or cultures, resist forming relationships with similar cultures. Should you work with a diverse team ask questions to your colleagues about what behavior is appropriate or inappropriate in their culture. Questioning is the best way of learning. Have the confidence to approach all cultures and take time to enjoy working with so many different people. Animation: Highlight the word embrace Transit to the next slide C onfidence to approach all cultures E njoy working with so many different people!

61 What Can We Do About It? Developing An Action PlanRETAILER CHALLENGE WHO CAN INFLUENCE? WHAT CAN WE DO? Audio: Based on the statistics we have learned about the retail challenges in MENA region print the Action plan and together with your manager and team brainstorm and create an action plan of specific retail challenges considering, who in Al Futtaim can influence the combating of these challenges, and what specific actions you can take, what Al Futtaim can do and what can you do personally to influence change. Animation: Note to the designer: build the print option of the action plan

62 Implications For Al FuttaimHow do we get our shoppers to shop only with us? LOYALTY How do we reduce the cost of selling to our shoppers? Audio: Overall, Retailers will have to ensure customers loyalty and efficient operations to overcome challenges in a very competitive market. At Al Futtaim we Provide excellent and efficient  customer service to reduce the cost of selling to our shopper and above all will build loyalty. To fully appreciate the life time value of a loyal customers, let’s review what does a loyal customer stands for. Loyalty when used in a business context, describes a customer’s willingness to continue patronizing a firm over the long term, preferably on an exclusive basis, and recommending the firm’s products to friends and associates . Customers exhibit customer loyalty when they consistently purchase a certain product or brand over an extended period of time, when they choose to use a particular shop or buy one particular product, rather than use other shops or buy products made by other companies True loyalty requires both share-of-wallet and share-of-heart so that customers continue buying even when situational factors may make a repeat purchase difficult. You are most likely a loyal customer to one or more brands, its products or its services. To calculate your own life time value as a loyal customer, think of a product you have purchased for a number of years. How many products do you purchase in one month, one year, 10 years? Take a piece of paper and a pencil and multiply the price you pay on that particular product with the number of the same products you purchae in one month. Multiply the results by 12 to learn how much you spend in one year on that particular product, then multiply this result by the number of years you have purchased that product. Now, multiply the final amount the number of of people you have recommended that product and the final result will tell you what is your lifetime value as a loyal customer to that product or brand. In summary, long term profitability provides, your lifetime value as a loyal customer, and not necessarily just the the amount of a one-time purchase. Animation: Note to the designer: build the guideline of “Calculating your lifetime value as a loyal customer. Highlight the implications for Al Futtaim Transit to the next slide. EFFICIENCY

63 Module VIII – Organizational StructureLessons: What is Organizational Structure Organizational structure at Al Futtaim Al Futtaim Job Roles Summary Audio: Now that you’ve completed the “Key Retail Challenges” module , lets continue the course with its 8h module, which is also the last module of this course: Organizational Structure This module consists of 4 lessons: Lesson 1) What is Organizational Structure Lesson 2) Organizational Structure at Al Futtaim Lesson 3) Al Futtaim Job Roles Lesson 4) Summary Lets begin our first lesson with “What is an Organizational structure” Animation: After the slide title, fly in each lesson name Transit to the next slide

64 Organizational Structure In Retail“There is only one boss. The Customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else” Sam Walton Founder of Wal-Mart Audio Organizational structure is a company's skeleton. It defines the roles and departments that make up a company's functioning and shows how everything fits together into a whole. When everyone in an organization understands their company's structure, they are better able to work together, perform their roles and feel secure in the scope and limits of their jobs. Everyone answers to someone. Organizational structures help make clear who answers to whom and where they fit in the chain of command. Organizational structures aim to make sure an organization is achieving all its required and desired functions and to make sure everyone understands his part. The goal is to make sure there is someone for everything and not unnecessary overlapping or duplication of work. It is everyone’s responsibility in the company to remember the needs of the Customer, no matter their position in the organization hierarchy. As famously quoted by Sam Walton the founder of Wal-Mart: “There is only one boss. The Customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else” Animation: Float in Sam Walton quote and fly in the next slide- Organizational structure at Al Futtaim

65 Organization Structure At Al FuttaimOMAR AL FUTTAIM CEO Corporate Head Office Internal Audit Legal Finance Human Resources Training Centre Automotive Division Trading Ent Al Futtaim Auto mall Famco Hertz Motors Electronics Technologies Aftron Plug-Ins Techserve Engg Panatech Retail Ikea Ace Toys R Us Marks & Spencer AFWJ Ladybird Danier Intersport Judith Leiber Services Gmasco Marketing Travel Systems & AOIC Logistics Property Development Real Estate Dubai Festival City Audio: As a group the Al Futtaim Organization structure has a divisional structure with each division containing all the necessary resources and job roles within it. Animation: Highlight each divison Transit to the next slide

66 Al Futtaim Job Roles Audio:Warehouse Assistant Interior Designer Logistics Manager Admin Manager Buyer Decorator Store Manager HR Manager Visual Merchandiser Sales Assistant Marketing Executive Retail Sales Assist Home Delivery Manager HR Assistant Visual Merch Assist Area Manager Cust Serv Manager Department Manager Audio: Once a company has established how functions are grouped, then functions must be assigned to the people who performs them. Most organizations create job roles to perform these functions. Positions with job descriptions help workers know the scope, function and limits of their roles, and for what tasks and outcomes they will be held responsible. In companies large enough to have multiple people in a department, like Al Futtaim, roles help make sure that each person is taking care of key functions without duplication or neglect of tasks. For example, in a store, you might have a store manager assistant store manager, a store supervisor, a sales assistant and a cashier. Each of these people form part of a team with an overall mission to manage the store operation, while each has a specific set of duties that add to the efficiency and ensure the thoroughness of the team. Animation: Highlight the following job roles: store manager, assistant store manager, store supervisor, sales assistant, cashier Fade in the next slide – Example at the store level Transit to the next slide Inventory Assistant Cashier Retail Area Supervisor Telephone Operator Dep Home Del Manager Facilities Manager Store Keeper IT Manager Cust Serv Assistant Store Supervisor Junior Buyer Business Analyst

67 Example At Store Level AudioSTORE MANAGER DEPARTMENT MGR (OUTDOOR) DEPARTMENT MGR (GIRLS) DEPARTMENT MGR (BOYS) DEPARTMENT MGR (R-ZONE) DEPARTMENT MGR (BRU) VISUAL MERCHANDISER ADMINISTRATION ASSISTANT SALES ASSISTANT VISUAL MERCHANDISING MGR FINANCE MANAGER OPERATIONS MANAGER BUYING MANAGER LOGISTICS MANAGER HR BUSINESS PARTNER MANAGEMENT ACCOUNTANT BUYER LOGISTICS EXECUTIVE MARKETING MANAGER ACCOUNTS EXECUTIVE BUYING ASSISTANT Audio Here is an example of an organizational structure in a department store.

68 Organization Structure In RetailCategory Buyer/ Manager Marketing Senior Mgmt Supplier Senior Mgmt Supplier Account Manager Store Ops Functional Specialists Inventory Admin & Facilities Audio: In summary, job roles are placed into ‘functions’ within the business and each one of these functions plays a different role in the Retail Financial Model, with Store Operations being the primary area where money comes into the business. Animation: highlight the “Store Ops”. Transit to the next slide SUPPLIER RETAILER

69 Summary Throughout the 8 modules we have informed you about:Who is Al Futtaim, their geographic and brand presence , their mission and vision The integral parts of the retail business and the key terminologies that are used when communicating with in retail industry How the path of purchasing has an influence on the shopper and its impact to the retail brand How the organization uses market share data to gain a competitive edge based on the demographics in the MENA region How retailers format their stores to entice shoppers and merchandise products as well as structured around the organization strategy How the retail brand structure the products based on the type of store format. The various challenges from an organization, retailer, supplier standpoint The various job roles that a retail brand can have with in a store format based on the strategy from the principle Organization Audio: We have now completes the Retail Industry programme where we have discussed and elaborated on how the Retail industry functions as an organization and consumer standpoint. Throughout the 8 modules we have informed you about - who is Al Futtaim, their geographic and brand presence , their mission and vision - the integral parts of the retail business and the key terminologies that are used when communicating with in retail industry - how the path of purchasing has an influence on the shopper and its impact to the retail brand - how the organization uses market share data to gain a competitive edge based on the demographics in the MENA region - how retailers format their stores to entice shoppers and merchandise products as well as structured around the organization strategy - How the retail brand structure the products based on the type of store format. - The various challenges from an organization, retailer, supplier standpoint - the various job roles that a retail brand can have with in a store format based on the strategy from the principle Organization Animation: Fly in each summary point

70 But Overall……. Its About YOU! Audio:But overall its about you making the difference to our customers, to our colleagues and our business. Lets hear what our colleagues have to say about working at Al Futtaim. Animation: Note to the designer: build the option to Click and watch the “ Al futtaim retail video” . Its About YOU!

71 Glossary Animation: Note to the designerThe Glossary of terms should be made available in the course index