3.9 % Is Non-Traditional the New Traditional? September 2019 • www.numerator.com A key driver of non-traditional growth is online shopping by modern consumers. These consumers routinely purchase both offline and online. They spend over 13% of their dollars online, and are making larger and more frequent purchases online. Traditional and non-traditional buying channels are approaching parity... ...And syndicated POS systems only track sales from a set of traditional retailers % of Dollar Sales in Non-Traditional Channels (Outside of Grocery, Drug & Mass) 33% Q2 2016 Q2 2017 37% Q2 2018 41% Q2 2019 46% From Numerator’s omnichannel view, basket sales growth has increased by 3.9%. Viewing marketplace sales through the lens of legacy panel or POS data indicates lower growth. More baskets are sold in non-traditional channels. 2 = Numerator OmniPanel (B&M), All FMCG Data source 3 = Legacy POS is an estimate of the "All-Outlet" POS solution provided by a leading market measurement vendor. 1 = Numerator OmniPanel (Mini-America) Numerator OmniPanel (B&M & Mini-America), Basket Sales Growth, YE June 2019 over previous. Validated against US Census Monthly Retail Trade % of Dollar Sales Online of Total Ecommerce and FMCG Sales 8% Q2 2016 Q2 2017 9% Q2 2018 11% Q2 2019 13% Data source: Numerator OmniPanel, Basket Sales 26% 2019 online dollar sales were up compared to 2018 EOQ Q2 2019 vs Q2 2018 Syndicated POS Data [ 3 ] Growth in basket sales Legacy panel data indicates a 1.8% growth in basket sales. Legacy Panel (FMCG Focus) [ 2 ] Modern consumers are spending more and shopping more online. Omnichannel (Numerator) [ 1 ] Syndicated POS data indicates a 0.2% growth in basket sales. Growth in basket sales Without the right insights, retailers and manufacturers are blind to consumer behavior in non-traditional channels. A complete view of the omnichannel market is essential to understanding consumers and unlocking sales growth. Let’s explore why sales are up in non-traditional channels, and flat in traditional channels. Modern Consumers: Do you know where they’re shopping? Add to Cart Wine Warehouse Get better insights into the modern consumer • Understand the impact of private label • Get insights on the shift to online and the Amazon effect • Analyze shifting consumption behavior, from eating out to CPG subscription services Numerator’s omnichannel data indicates a 3.9% growth in basket sales. Growth in basket sales Data source: Numerator OmniPanel validated against US Census Monthly Retail Trade, YE June 2019 Chart shows % of $ Spend in “Blind Spot” = $ Sales in eCommerce, Specialty & many Point-of-Sale non-participating retailers in traditional channels. Legacy POS is an estimate of the "All-Outlet" POS solution provided by a leading market measurement vendor. Contact: [email protected] LIMITED Super Store Super Store 1.8 % 0.2 %