European Retail Trends in 2018: Accelerated Pathways Toward Innovation, AI, and CX SPAIN FRANCE GERMANY ITALY UK NETHERLANDS NORDICS SEGMENTS Apparel, footwear and accessory stores Eating and drinking places Consumer electronics General merchandise Other Specialty retail Food Stores eCommerce and other non-store retail In Europe, retailers' IT departments control the largest part of IT spending, but LOBs exercise significant control and influence. Entirely controlled by LoB 28% European IT Spending 35% Controlled by IT dept., influenced by LoB 37% Entirely controlled by IT dept. Almost half of retailers´ IT budgets will be dedicated to modernization and innovation 35% Maintain/ Run existing systems 25% Innovation 18% Regulatory compliance 21% Modernize existing systems European IT Budget Allocation Customer experience drives expansion, innovation and marketing strategies for European Retailers Customer experience (CX) personalization New Markets Marketing Innovation Business Priorities 69% 53% 55% Innovation will lead the growth of omni-channel profitability This will be favored by the adoption of a retail commerce platform that enables the piloting, implementing, and scaling innovative of use cases at speed. Omni-channel Profitability Innovation Supply chain optimization Sales performance improvement M&A CX Personalization In Europe, the top solution investments will span from ecommerce to machine learning/artificial intelligence (ML/AI) to the store. This infographic highlights the results of an IDC Retail Insights survey published in The European Retail Digital Transformation Strategies program. The survey examines the impact of digital transformation on the European retailers' business, technology, and organizational areas. Specific coverage is given to provide valuable insights into the European retail industry, with a specific focus on digital transformation strategies applied by retail companies to improve the omni-channel customer experience. IDC Retail Insights EMEA @IDCInsightEMEA | #idcretail www.idc.com | [email protected] Merchandising 43% 43% eCommerce Platform ML/AI 39% Self Checkout Loyalty Mgmt 34% Mobile Apps 33% 32% Merchandising European retailers' interest in the IoT opportunity is clear, but still a minority of them use IoT-generated data to provide an impact on business IoT adoption Use IoT-generated data with direct impact on business 56% 45% 43% 37% 27% 50%