U.S. Retail Industry Overview by Sutherland Global Services

US Retail Industry Overview May 2013

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Global Retail Industry Overview 1

Global Retail Sales

USD17.0 Tn (2012)

North America Retail Sales

USD3.7 Tn (2012)

US Retail Sales

USD3.5 Tn (2012)

Region

Market Size (USD Tn) 2012

CAGR (%) – 2012-16

Key Contributing Countries

Asia and Australasia

7.4

12.3

China, Indonesia, India, Malaysia

Latin America

1.4

8.4

Brazil, Uruguay, Chile

North America

3.7

4.2

US, Canada, Mexico

Western Europe

2.9

1.9

UK, France, Germany

Major Retail Markets

5 Comment About the US Retail Market

“As we enter an increasingly complex retail landscape with accelerating competitive pressures and digital shopping options, retailers will need to prepare for a wall-less omnichannel retail world, one where shoppers will come to expect a seamless brand experience online, in-store and across multimedia touch points. This multi-format portfolio combined with the proliferation of small, urban, alternative retail formats will pave the way for future growth, dismantling the mass homogenization and scale assumptions that propelled two decades of retail growth.”– Susan McPartlin, PwC’s US Retail & Consumer Sector leader “You’re seeing an improving trajectory in the labor market, which means stronger aggregate wages and salaries, and that’s going to be good for consumer spending.” – Neil Dutta, Head of US. Economics at Renaissance Macro Research LLC

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US Retail Industry Size & Growth US Retail Sales #(In USD Bn) Total Retail $3,015 Sales

$3,112 $456.1 $319.3 $111.6

$596.4

$3,015 $451.1

$3,114 $466.0

$311.4 $102.9

$341.2 $106.5

$591.6

$608.0

$3,295 $493.5 $393.7

$3,451 $529.6 $439.7

$113.5

$122.2

$629.1

$631.8

$84.0 $215.8 $246.8

$80.9 $204.6 $253.2

$81.6 $213.7 $261.2

$84.7 $226.7 $272.3

$569.7

$568.8

$582.0

$613.9

$634.3

$304.6

$266.9

$267.9

$278.9

$294.2

$108.7 $99.6

$98.0 $86.1

$99.2 $87.2

$100.0 $88.8

$99.2 $95.6

2008

2009

2010

2011

2012

Growth of food & beverage and restaurant sales also remained moderate during this period Source: US Census Bureau, Internet Retailer

2.6%

Non-Store Retailers

$90.1 $239.2

Electronic retail sales have remained sluggish over the last five years, whereas furniture retail sales picked up in 2012, with a growth of 7.7% yo-y, after being sluggish till 2011

CAGR 2008-12

Food Services and Drinking Places

3.8%

Miscellaneous Store Retailers

8.3%

General Merchandise Stores

2.3%

Sporting Goods, Hobby, Book and Music Stores Clothing and Clothing Accessories Stores Health and Personal Care Stores

1.5%

1.8% 2.6%

$274.9

2.7%

Food and Beverage Stores

2.7%

Building Material and Garden Equipment Electronics and Appliance Stores

-0.9% -2.3%

Furniture and Home Furnishings Stores

Non-store retail was the fastest growing segment and the only retail segment that witnessed double-digit growth in 2012 In 2012, Ecommerce contributed close to 51.2% to the non-store sales and ~6.5% to the total retail sales

-1.0%

Health and personal care segment sales continue to grow at a faster pace than the retail industry average during 2008-12. This was driven by higher demand for drugs due to an ageing US population

# Retail sales considered do not include sales from Auto and Gasoline segments

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US Total Retail Sales Growth & Same-Store Sales Growth Total Retail Sales and Same-Store Sales Growth (YOY % Change) 15%

10%

-5%

-10% Jan-09

May-09

Sep-09

Jan-10

May-10

Sep-10

Jan-11

Total Sales

Lower Same-Store sales growth compared to total sales over the past several quarters indicates lower efficiency of existing stores

Retailers have improved sales through addition of new stores rather than improving sales at existing stores

May-11

Sep-11

Jan-12

May-12

Sep-12

Jan-13

Same-Store Sales

Over the last couple of years, several retailers have initiated plans for improving store productivity through downsizing of retail footprint

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Macroeconomic Drivers of Retail Industry Unemployment Rate (%) 10.5 10.0 9.5 9.0 8.5 8.0 7.5

9.7 9.0 8.3 7.9

9.7

8.8

8.9 8.3 8.2 7.7

Feb

9.6 9.4

9.0

9.1

8.9 8.1

8.6 8.2

8.2

9.5

9.5 9.2 8.2

9.5

9.7 9.6

9.1 8.2

9.1 8.1

10.1

9.8

9.7

9.6

9.9

Despite unemployment dropping to below 8% in the last seven months, it still remains much above the pre recession levels of 4-5%

9.8 8.6

9.4 8.5

7.9

7.8

Oct

Nov

Dec

9.1

9.0

7.8

7.6

7.8

Jan

9.8

9.7

Mar

Apr

May

2009

Jun 2010

Jul

Aug

2011

2012

Sep 2013

Consumer Confidence Index 80 70 60 50 40 30 20

72 71.6 64.8 61.5 58.4 56.5

46.4

68.7

69.5

59.7

63.8

39.5

Jan

61.7

62.7 57.6 54.3 49.3

47.4

71.5

61.3

59.2

54.5 45.2

49.9 48.7

53.4

53.2

54.8

73.1

68.4

65.4

40.8

25.3

Feb

65.4 57.7

52.3

64.4 62.7

46.4

48.6

57.8 55.2

66.7 64.8

63.4

50.6

53.6

Nov

Dec

The US economy is benefiting from a resurgent housing market, rising consumer confidence and the Federal Reserveâ&#x20AC;&#x2122;s stimulus actions. All these have helped lower borrowing costs and lift the stock market

40.9

26.9

Mar

Apr 2009

May

Jun 2010

In October 2012, consumer confidence was at its peak post recession. A month before that unemployment dropped below 8% for the first time after January 2009

Jul 2011

Aug 2012

Sep

Oct

2013

In October 2011, consumer confidence dipped to its lowest level since February 2009 as consumer fears about job loss and income prospects increased

The recent increase in consumer confidence resulted from the rebound in home values that shows the recovery in residential real estate, which is buttressing the US economy

Source: Trading Economics, Bloomberg, US Bureau of Labor Statistics ÂŠ 2013 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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US Retail Segments and Key Players (1/2) Retail Segment by Merchandize Food and Beverage Stores

Major Store Formats • Supermarket • Convenience store • Hypermarket & Supermarket

General • Department stores Merchandise Stores • Discount stores • Cash & Carry/Warehouse club • Hypermarket/Supercenter Food Services and Drinking Places

• Full-service restaurants • Limited-service eating places

Non-Store Retailers • Ecommerce (includes Online) • Vending machines operators • Direct selling establishments

Building Material and Garden Equipment and Supplies Dealers

• Home improvement • Hypermarket/Supercenter

Health and Personal • Drug stores Care Stores • Hypermarket/Supercenter • Supermarket

Sales (USD Bn) 2012

% of Total Retail Sales(2012)

Key Players by Type of Merchandize

18.4%

• The Kroger Co., Ahold USA, Safeway Inc., Supervalu Inc., Loblaw Companies, Publix Super Markets, Delhaize America, Tiendas De Descuento Sultana, Tiendas De Descuento Sultana, Alimentation Couche-Tard, Empire Company Limited

631.8

18.3%

• Wal-Mart Stores, Costco Wholesale Corporation, Target Stores Inc., Sam's Club, Sears Holdings Corporation, Macy's Inc., Kmart Holding Corp., The TJX Companies, Kohl's Corporation, J.C. Penney Company

529.6

15.3%

634.3

439.7

12.7%

294.2

8.5%

274.9

8.0%

• McDonald's Corporation, Pal's Sudden Svc, ARAMARK Corporation, Starbucks Corporation, Yum! Brands Inc., Doctor's Associates Inc., SUBWAY Restaurant, Darden Restaurants Inc., Compass Group North America, Dunkin' Donuts Inc.

• Caremark RX Inc., Amazon.com Inc., Mario Gauthier Bois De Foyer, eBay Inc., Ultramar Ltd., Avnet Technology Solutions Division, Foodbuy LLC, Systemax Inc., Performance Food Group, Parkland Fuel Corp

• The Home Depot, Lowe's Companies, Sherwin-Williams Company, Menards, Home Hardware Stores, RONA Inc., Tractor Supply Company, Ace Hardware, GAF Materials, Westech Building Products

• CVS Caremark Corporation, Walgreen Company, Medco Health Solutions, Rite Aid Corporation, Shoppers Drug Mart Corporation, The Katz Group, Omnicare, Coty Inc., Sally Holdings LLC, Mary Kay Cosmetics de México SA de

Indicative Only Note: The companies have been listed as per the NAICS classification of the sub-segments Source: US Census Bureau, Sutherland Research Analysis © 2013 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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US Retail Segments and Key Players (2/2) Retail Segment by Merchandize

Major Store Formats Apparel/Footwear stores Department stores Discount stores Hypermarket/Supercenter

Sales (USD Bn) 2012

% of Total Retail Sales(2012)

Clothing and Clothing Accessories Stores

• • • •

Miscellaneous Store Retailers

• Specialty stores (e.g. office supplies, pet care, etc.)

Electronics and Appliance Stores

• Discount stores • Department stores • Electronics & Entertainment stores

99.2

2.9%

Furniture and Home Furnishings Stores

• Home Improvement stores • Department stores • Hypermarket/Supercenter

95.6

2.8%

Sporting Goods, Hobby, Book, and Music Stores

• Hypermarket/Supercenter • Specialty stores

90.1

2.6%

239.2

6.9%

122.2

3.5%

Key Players by Type of Merchandize • The Gap Inc., Nordstrom, Limited Brands, Ross Stores, Old Navy, Victoria's Secret Stores LLC, Foot Locker, Coach Inc., Neiman Marcus, Abercrombie & Fitch Co.

• Staples Inc., Office Depot Inc., OfficeMax Inc., QVC Inc., PetSmart Inc., Family Christian Stores Inc., Jo-Ann Stores Inc., PETCO Animal Supplies Inc., Party City Holdings Inc., United Online Inc. • Best Buy Co., Circuit City Stores, Fry's Electronics, Newegg, Samsung Electronics America, CompUSA Inc., Sony Electronics Inc., GameStop Corp., RadioShack Corporation, Gateway Inc. • IKEA, Bed, Bath and Beyond, CCA Global Partners, Carpet One Floor & Home, Linens Holding, Linens N Things Center, Heilig-Meyers Company, Rooms To Go, Pier 1 Imports • Toys "R" Us, Barnes & Noble, Dick's Sporting Goods, Michaels Stores, Billabong USA, Cabela's Inc., Sports Authority Inc., Follett Corp., Borders Group, L.L.Bean Inc.

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Retail Industry Level Challenges & Trends

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Key Challenges Faced by Retailers (1/2) Decentralized Operations • A key in-store challenge faced by several retailers is the decentralized operations resulting into non-standard processes and lack of proper control. Non-standardized processes may result in a high degree of decision fragmentation, inefficient labor management, stock outs and shrinkage • For instance, many a time, one of the stores of a departmental chain may have additional inventory, while there is stock outage of the same in another store of the chain, and these two stores may be in the same city/district

Customer Acquisition & Retention • Changing consumer demand, restricted consumer spending, short product life cycles and higher customer expectations are making customer acquisition and retention increasingly difficult. This is also because of the additional fact that today’s customer is a lot more informed about what he/she wants to buy – this could be through social networks, reviews read, checks done with earlier consumers of the same product and comparison with competitors’ products • As against this, retailers also find themselves in the midst of a lot of customer data gathered from historical purchases, predictions by consumer insight groups, etc. Matching the past behavior with future prediction in order to launch interesting loyalty and rewards programs is a constant challenge

Retail Shrinkage • According to an annual survey conducted by the University of Florida, employee theft, shoplifting and organized retail crime, and administrative error are the main sources of loss affecting retailers • Data from National Retail Security Survey shows that the retail shrinkage in the US totaled USD35.3 Bn in 2011 – the loss of inventory due to employee theft, shoplifting, paperwork errors, or supplier fraud. At an overall level, retail shrinkage approximately accounts for about 1%-1.5% of retailers sales in 2011 • Of the total shrinkage reported, employee theft accounted for 44.2%, shoplifting and organized retail crime for 25.8%, and administrative error for 12.1 % Source: Retail TouchPoints, KPMG, NRF, Tyco © 2013 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Key Challenges Faced by Retailers (2/2) Data Management • Consolidation in the industry, expansion in new markets and introduction of new sales channels/platforms have resulted in several retailers facing an extremely fragmented IT landscape • Storing of data in disparate systems & databases and its inconsistent classification across units make getting an accurate view of a customer/vendor/overall business a fairly daunting task • A survey indicates that 53% of large retailers indicate that customer analysis is difficult due to enormity of data from different channels

Fraud Management • Fraud is fast becoming an area of concern for retailers as they expand their online commerce platforms. As per a CyberSource survey, as many as 2.8% of orders were rejected in 2011 on suspicion of fraud • Fraud leads to significant loss of revenue and products (in addition to customer call back, asking more details for verification and lengthening the purchase – delivery cycle) • According to the CyberSource survey, e-commerce frauds cost merchants USD3.4 Bn in lost online revenues in 2011, up 25.9% from 2010. In 2011, 25% of merchants spent 0.5% or more of their online revenues to manage online payment fraud, while 75% spend l ess than 0.5%. Around 52% of the budget allocated for fraud management in 2011 was spent on order review staff

Efficient Inventory Management • Increasingly sophisticated demands from customers have made the ability to forecast demand accurately a key factor for retailers. Many times, there might be shortage of one item that was otherwise overstocked by the shop. • There is a reason to believe that efficient inventory rotation and management is a key business expertise that is generally lacked

Source: Retail TouchPoints, Gartner, Infosys, JP Morgan, Sutherland Research Analysis, NRF © 2013 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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Key Trends in the US Retail Industry (1/2)

Retailers Continue to Decrease Footprint and Focus on Efficiency

• One of the biggest trends in the US retail is small. Over the past few years, many big-box retailers have started rolling out smaller store formats or subleasing excess space to local businesses to improve efficiency • Retailers continue to adapt to the urban settings and optimize their real estate portfolios, which create an opportunity for businesses to connect with the people in their stores on a daily basis. For instance, Target is now using smaller footprint locations in Boston, New York, Philadelphia, Baltimore and Washington • In November 2012, Office Depot announced that it will downsize or relocate about 100 stores in 2013, to save as much as USD20 Mn a year. Moving beyond 2013, the retailer also plans to spend USD60 Mn every year for the next five years to downsize or relocate about 500 stores into smallor mid-sized stores • Moreover, few other retailers continue to close down a considerable number of stores due to deteriorating financial health. For example, Barnes & Noble has announced to downsize its retail operation over the next 10 years. The retailer plans to shut down approximately one-third of its 689 brick-and-mortar locations, which will leave it with only 450-500 stores

Retailers Continue to Expand Overseas for Growth

• Increasing competition and tighter spending in the US continue to send a rising number of retailers to venture overseas in search of growth. Countries including China, India and other developing nations have become very attractive markets for the US-based retailers • Throughout 2012, retailers continued to adapt and adjust their brands and operations to fit with different cultures globally. Through store openings and brand expansion, the US retailers have opened their doors to international shoppers like never before • For example, Gap is planning to scale up its expansion to take advantage of growth in the lucrative markets of China, Brazil and Japan. In 2012, Gap opened 30 stores in China and has plans to add 35 more in fiscal 2013. The retailer also plans to add its affordable luxury brand store Banana Republic in the region

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Key Trends in the US Retail Industry (2/2)

Growing M-commerce in Retail

• M-commerce is the fastest growing channel in retail. According to data from the IBM Online Retail Index and the US Department of Commerce, m-commerce sales rose 31% in the first quarter of 2013 as against in-store retail sales growth of 3.7% for the same period • According to eMarketer study, m-commerce sales in the US grew to reach USD24.81 Bn in 2012, up from USD13.63 Bn in 2011. By 2017, m-commerce sales are expected to contribute more than USD108 Bn in the US retail sales • The impact of m-commerce on sales and margin will be driven by widespread adoption of consumers using the mobile web and their smartphones and computer tablets • According to comScore, the time spent with online retail on smartphones grew a whopping 385%, from 2.7 Bn minutes in February 2010 to 12.9 Bn minutes in February 2012 • Growing m-commerce has enabled retailers to list down their m-commerce strategies for future. According to a survey by Appcelerator and IDC, 93% of mobile developers anticipate that it is “likely to very likely” that most retailers will have enabled m-commerce platform in 2013 as consumers increasingly reach for their phones and tablets even while shopping in a physical store

New Age of Social Media

• Social media continues to impact retail sales in the US. In the recent past, Pinterest has gained a lot of relevance within the US retail industry. According to RichRelevance, traffic from Pinterest has doubled in 2012, while Facebook saw its share decline to 90% (from 95% in 2011) • The potential for the synergistic relationship between Pinterest and the US retail industry has not been fully identified yet. However, a large number of the US retail industry stores, chains, and brands have created Pinterest Pinboards and are using this photo-driven community to successfully drive web traffic and generate sales • For instance, Gilt.com, a fashion retailer launched “Pin to Win" contest that offered USD2,500 shopping spree to women who shared certain images from their wedding dress collection. The company also rewarded those who received 50 re-pins of children's dress and got the chance to buy the item for 77% off

Source: eMarketer, comScore, US Department of Commerce, Forbes, Press Articles © 2013 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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US Retail â&#x20AC;&#x201C; Top 50 Companies

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Identification of Top 50 US Retail Companies (2011)

Total Retail Industry USD3.30 Tn

Top 50 Retail Companies USD1.46Tn

No. of Companies

Collective Revenue from US (USD Mn)

Collective Revenue as % of Top 50 Retailers Revenue

Apparel/Footwear

46,024

3.2%

Cash & Carry/Warehouse Club

76,018

5.2%

Convenience store

10,361

0.7%

Department Store

106,628

7.3%

Discount Store

32,573

2.2%

Drug Store

151,274

10.4%

Electronics & Entertainment

66,373

4.6%

Food & Restaurant

95,798

6.6%

Home Improvement

146,050

10.0%

Hypermarket/Supercenter

409,380

28.1%

Non-Store

26,397

1.8%

Supermarket

262,434

18.0%

Specialty

28,020

0.9%

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US Retail – Top 50 Companies (1/5) Apparel/Footwear Sr. No. 1 2 3 4

US Retail Rank 22 31 42 43

Company

Retail Sales US – 2011 (USD Mn)

TJX Gap Ross Stores Limited Brands

17,386 11,443 8,605 8,590

Retail Sales US – YoY Growth (%) 3.8 -2.3 9.5 9.7

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

23,267 14,289 8,613 10,364

74.7% 80.1% 99.9% 82.9%

No. of Stores (2011) 2,212 2,436 1,124 2,623

YoY Change in No. of Stores 0.3% -2.6% 6.6% -0.8%

Cash & Carry/Warehouse Club Sr. No. 1 2

US Retail Rank 5 30

Company

Retail Sales US – 2011 (USD Mn)

Costco BJ's Wholesale Club

64,221 11,797

Retail Sales US – YoY Growth (%) 8.9 8.5

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

89,054 11,797

72.1% 100.0%

No. of Stores (2011)

YoY Change in No. of Stores

425 196

3.2% 3.7%

Convenience store Sr. No. 1

US Retail Rank 35

Company 7-Eleven

Retail Sales US – 2011 (USD Mn) 10,361

Retail Sales US – YoY Growth (%) 19.1

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

62,700

16.5%

No. of Stores (2011) 7,779

YoY Change in No. of Stores 16.3%

All retail sales estimates are excluding wholesale and non-retail services. Fuel sales are included, except where revenues of fuel exceed 50% of average store revenues, in this case sales are reported exclusive of fuel sales. All figures are estimates based on Kantar Retail research and company reports. Source: STORES Media © 2013 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.

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US Retail – Top 50 Companies (2/5) Department Store Sr. No. 1 2 3 4 5

US Retail Rank 12 16 20 23 34

Company Sears Holdings Macy's Kohl's J.C. Penney Nordstrom

Retail Sales US – 2011 (USD Mn) 33,837 26,344 18,804 17,146 10,497

Retail Sales US – YoY Growth (%) -4.3 5.7 2.2 -2.9 12.7

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

39,365 26,405 18,804 17,238 10,497

86.0% 99.8% 100.0% 99.5% 88.7%

No. of Stores (2011) 3,489 840 1,127 1,105 225

YoY Change in No. of Stores 0.1% -0.8% 4.1% 0.5% 10.3%

Discount Store Sr. No. 1 2 3

US Retail Rank 28 40 44

Company Dollar General Aldi Family Dollar

Retail Sales US – 2011 (USD Mn) 14,807 9,218 8,548

Retail Sales US – YoY Growth (%) 13.6 10.2 8.7

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

14,807 42,871 8,548

100.0% 21.5% 100.0%

No. of Stores (2011)

YoY Change in No. of Stores

9,937 1,195 7,023

6.0% 5.3% 3.5%

Drug Store Sr. No. 1 2 3

US Retail Rank 4 7 17

Company Walgreen CVS Caremark Rite Aid

Retail Sales US – 2011 (USD Mn) 66,330 59,688 25,256

Retail Sales US – YoY Growth (%) 8.3 3.9 0.6

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

68,233 59,786 25,256

97.2% 99.8% 100.0%

No. of Stores (2011) 7,651 7,345 4,664

YoY Change in No. of Stores 2.6% 1.8% -1.1%

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US Retail – Top 50 Companies (3/5) Electronics & Entertainment Sr. No. 1 2 3

US Retail Rank 9 21 33

Company

Retail Sales US – 2011 (USD Mn)

Best Buy Apple Stores / iTunes Verizon Wireless

37,551 17,825 10,997

Retail Sales US – YoY Growth (%) 1.2 36.9 37.1

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

50,705 18,418 10,997

74.1% 96.8% 100.0%

No. of Stores (2011) 1,443 245 2,330

YoY Change in No. of Stores 10.0% 5.2% 0.0%

Food & Restaurant Sr. No.

US Retail Rank

Company

Retail Sales US – 2011 (USD Mn)

Retail Sales US – YoY Growth (%)

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

No. of Stores (2011)

YoY Change in No. of Stores

McDonald's

34,172

5.5

$85,941

39.8%

14,087

0.5%

2 3 4 5 6

25 32 41 45 49

YUM! Brands Subway Wendy's Burger King Holdings Starbucks

17,100 11,206 8,931 8,446 8,038

0.6 8.0 -10.9 0.1 6.3

$32,380 $17,212 $9,604 $15,499 $11,700

52.8% 65.1% 93.0% 54.5% 68.7%

18,050 25,014 5,876 7,218 10,787

-1.0% 3.4% -37.5% -0.6% -3.1%

Darden Restaurants

7,905

8.1

$8,108

97.5%

1,936

4.1%

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US Retail – Top 50 Companies (4/5) Home Improvement Sr. No. 1 2 3 4 5

US Retail Rank 6 8 24 38 48

Company

Retail Sales US – 2011 (USD Mn)

The Home Depot Lowe's True Value Ace Hardware Menard

62,075 49,282 17,135 9,491 8,067

Retail Sales US – YoY Growth (%) 3.1 2.3 2.4 4.3 0.4

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

70,391 50,207 17,135 10,250 8,067

88.2% 98.2% 100.0% 92.6% 100.0%

No. of Stores (2011)

YoY Change in No. of Stores

1,963 1,712 4,650 4,072 262

-0.2% -0.6% -1.1% 0.6% 0.8%

Hypermarket/Supercenter Sr. No. 1 2 3 4

US Retail Rank 1 3 27 47

Company Wal-Mart Target Meijer Army Air Force Exchange

Retail Sales US – 2011 (USD Mn) 316,083 68,466 16,603 8,228

Retail Sales US – YoY Growth (%) 2.6 4.1 7.1 -0.1

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

453,976 68,466 16,603 8,228

69.6% 100.0% 100.0% 100.0%

No. of Stores (2011)

YoY Change in No. of Stores

4,423 1,763 197 181

1.4% 0.7% 0.0% 0.6%

Non-Store Sr. No. 1

US Retail Rank 15

Company Amazon.com

Retail Sales US – 2011 (USD Mn) 26,397

Retail Sales US – YoY Growth (%) 42.5

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

47,715

55.3%

No. of Stores (2011)

YoY Change in No. of Stores -

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US Retail – Top 50 Companies (5/5) Supermarket Sr. No. 1 2 3 4 5 6 7 8 9

US Retail Rank 2 10 13 14 18 19 26 29 37

Company Kroger Safeway SUPERVALU Publix Ahold USA / Royal Ahold Delhaize America H-E-B Wakefern / ShopRite Whole Foods Market

Retail Sales US – 2011 (USD Mn) 85,491 36,923 29,297 26,967 25,074 19,230 16,820 12,838 9,794

Retail Sales US – YoY Growth (%) 9.1 5.6 -3.6 7.6 6.6 2.2 11.9 8.6 12.1

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

85,491 41,884 29,297 26,967 63,066 29,400 17,976 12,838 10,108

100.0% 88.2% 100.0% 100.0% 39.8% 65.4% 93.6% 100.0% 96.9%

No. of Stores (2011) 3,574 1,453 2,466 1,198 756 1,650 308 291 311

YoY Change in No. of Stores -1.0% -0.7% 1.6% -0.9% 0.7% 1.4% 5.1% 6.6% 8.0%

Specialty Sr. No. 1 2 3

US Retail Rank 36 39 46

Company Staples Bed Bath & Beyond Toys "R" Us

Retail Sales US – 2011 (USD Mn) 10,337 9,402 8,281

Retail Sales US – YoY Growth (%) 0.9 8.1 -3.0

Retail Sales Global – 2011 (USD Mn)

US as % of Global Retail Sales

20,615 9,511 17,363

50.1% 98.8% 47.7%

No. of Stores (2011)

YoY Change in No. of Stores

1,583 1,143 871

0.5% 2.6% 0.0%

www.sutherlandglobal.com 9 July 2013

End of Presentation