Canadian Insights in Grocery Sector

CUSTOMER EXPERIENCE FROM IN-STORE TO ONLINE, HOLIDAY & BEYOND

Make better decisions, faster, with access to rapid insights at every stage of the consumer journey Agenda 03 ONLINE GROCERY

HOLIDAY SHOPPING ABOUT CADDLE ® 01 04 TRACKER

02 IN-STORE GROCERY 05 KEY TAKEAWAYS & NEXT STEPS

Caddle® Inc. Confidential How It Works Caddle® is the largest daily and monthly active panel in the Canadian market. VIDEO SURVEY

Capture relevant insights for any challenge or opportunity. Engage seamlessly with shoppers at every stage of the consumer journey by

leveraging the Caddle suite of tools. RECEIPT REVIEW

Caddle® rewards panel members for actions ranging from video, survey, receipt capture, reviews, and more.

RE-ENGAGE

Caddle® Inc. Confidential Largest Canadian Panel In Market

Panel Details Macro and niche data verticals including:

• New Moms Largest daily active Canadian panel in Canada: Every type of • Costco Shopper representative 10,000+ DAUs and shopper samples • Amazon Prime Members 100,000+ MAUs • Cannabis Consumers • Health Professional • Luxury Shoppers • Shopper Dad • Repeat Purchasers Holistic Engaged users Dynamic, on- understanding • Vegan Buyers rewarded for demand reporting across path to actions dashboard • Pop Consumers purchase • Environmentalists

Caddle® Inc. Confidential Caddle’s Suite of Tools Unlock Insights Across Functions

EQUIP SHOPPER MARKETING

TO SELL SMARTER DISTRIBUTION PRODUCT CONSUMER EXP. CONSUMER AT-SHELF EXPANSION CHANGE CX RETAILER ACTIVATION CREATIVE TESTING

ACCELERATE INSIGHTS TO VIDEO SURVEY MAKE DECISIONS FASTER CREATIVE PACKAGING CONJOINT USAGE & SEGMENTATION TESTING TESTING ANALYSIS ATTITUDE ANALYSIS

EMPOWER CATEGORY WITH

CATEGORY REVIEW THOUGHT LEADERSHIP AT-SHELF CROSS-RETAILER CONSUMER SHOPPER INSIGHTS & RECEIPT INSIGHTS OPTIMIZATION PLANOGRAM DECISION TREE BASKET ANALYSIS

DRIVE BRAND GROWTH

WITH REAL-TIME INSIGHTS BRAND INNOVATION CONSUMER CLAIMS BRAND LIFT ACCELERATOR EXP. PRODUCT TESTING HEALTH RE-ENGAGE

ACCELERATE ECOMM GROWTH

RATINGS & MICRO-SEGMENT CLAIMS SMARTER NPS WITH OMNI-INSIGHTS REVIEWS INSIGHTS TESTING SAMPLING SENTIMENT The Customer 1. Methodology of CX 2. Ease of implementation Experience (CX) 3. Any product category Accelerator 4. Any retailer

Caddle® Inc. Confidential GROCERY RETAIL CUSTOMER CONSUMER RANKINGS EXPERIENCE (CX) TRACKER Caddle launched a first-of-its-kind Canadian Grocery 1. 7. Retail Tracker, looking at consumer preference across all of the major Canadian grocery retailers. 2. 8.

Weekly Tracker Results: June 17th – November 30th 2020

1. Likelihood of Recommending to Family or 3. 9. Friends (NPS) 2. Speed of Shopping & Check Out 3. Layout & Signage 4. 10. 4. In-Store Customer Service (CX) 5. Cleanliness & Hygiene 6. Product Availability 7. Brand Availability 5. 11. 8. Fresh Food Availability 9. Value for Price 6. 12.

Caddle® Inc. Confidential held the highest NPS (72) across the country, while Winner & Loser

held the lowest NPS (46) across the country, ranked bottom 5 in all 9 factors, and last in 6 of 9 factors.

Caddle® Inc. Confidential Net Promoter Score | National NPS = % Promoters (9-10 ratings) minus % Detractors (0-6 ratings) eCommerce Banner Rankings NPS - National Costco 72 No Frills / Maxi 62 Shoppers Drug Mart/Pharmaprix 61 Giant Tiger 61 Dollarama 58 Real Canadian Superstore/RASS 58 Metro 57 Food Basics/Super C 56 Sobeys/Safeway 55 Loblaws Market 54 FreshCo/Price Chopper 50 Walmart 46

Source: Caddle Inc. Q4 2020 Grocery Retail Customer Experience Tracker Boomers are more generous on NPS Score Average Net Promoter Score by Grocery Retailer

Caddle® Inc. Confidential One-Stop Shops & Quick Fill-Ins are Winning Customer Experience Tracker | Ranked #1-12

Speed of Shopping & Check Out 9 2 4 8 2 6 12 12 11 7 5 11 3 4 7 5 6 9 1 1 8 3 10 11

Layout & Signage 7 3 9 10 8 7 10 9 11 6 3 11 2 5 6 1 5 12 1 2 4 4 12 11

In-store Customer Service (CX) 9 7 10 10 3 6 11 8 6 3 4 6 2 4 8 5 7 11 1 1 5 2 12 12

Cleanliness & Hygiene 3 4 8 8 9 10 11 9 6 5 5 6 2 3 10 6 7 11 1 2 4 1 12 12

Product Availability 2 5 8 7 6 6 10 10 11 8 7 11 3 2 9 4 5 12 1 1 4 3 12 12

Brand Availability 4 6 8 10 7 5 10 12 12 9 5 12 3 1 9 7 1 8 2 3 6 1 11 11

Fresh Food 3 3 12 12 7 4 8 8 10 10 2 10 1 1 6 6 4 7 11 11 5 2 9 11 Availability

Value for 1 4 6 6 3 3 7 5 5 2 11 5 10 11 2 1 4 8 9 9 12 10 8 7 Price In COVID, not JUST Value is Critical for NPS Customer Experience Tracker | Ranked #1-12

Speed of Shopping & Check Out 9 2 4 8 2 6 12 12 11 7 5 11 3 4 7 5 6 9 1 1 8 3 10 11

Layout & Signage 7 3 9 10 8 7 10 9 11 6 3 11 2 5 6 1 5 12 1 2 4 4 12 11

In-store Customer Service (CX) 9 7 10 10 3 6 11 8 6 3 4 6 2 4 8 5 7 11 1 1 5 2 12 12

Cleanliness & Hygiene 3 4 8 8 9 10 11 9 6 5 5 6 2 3 10 6 7 11 1 2 4 1 12 12

Product Availability 2 5 8 7 6 6 10 10 11 8 7 11 3 2 9 4 5 12 1 1 4 3 12 12

Brand Availability 4 6 8 10 7 5 10 12 12 9 5 12 3 1 9 7 1 8 2 3 6 1 11 11

Fresh Food 3 3 12 12 7 4 8 8 10 10 2 10 1 1 6 6 4 7 11 11 5 2 9 11 Availability

Value for 1 4 6 6 3 3 7 5 5 2 11 5 10 11 2 1 4 8 9 9 12 10 8 7 Price 1. One-Stop Shop & Quick Fill-Ups | Key Takeaways: critically important to winning the consumer in pandemic What Canadians 2. Value and Speed | are drivers are saying about rounding out the top 5 ranking retailers in NPS. in-store grocery 3. Baby Boomers | expectations of customer experience are lower.

Caddle® Inc. Confidential GROCERY RETAIL CUSTOMER ECOMMERCE GROCERY RETAILERS EXPERIENCE (CX) TRACKER Caddle launched a first-of-its-kind eCommerce Canadian Grocery Retail Tracker, looking at consumer preference across all of the major online Canadian grocery retailers. The data has been weighted by region, gender, and age, based on the most recent Canadian census figures to ensure that the sample reflects Canada’s population. This report summarizes the results for 5 weeks of data collection, which includes 7,209 completed surveys Weekly Tracker Results: October 19 - December 1, 2020

• Net Promoter Score • 12 Attributes:

1. Easy to pick up order 7. Order availability/quick 2. User-friendly app/site delivery 3. Availability of items 8. Cleanliness & hygiene 4. Fresh food quality 9. Order accuracy 5. Payment options 10. Return policy 6. Keeping you updated 11. Price online vs. in- person Caddle® Inc. Confidential 12. Secure transaction n = 7,209 WINNER HOME DELIVERY VS. LOW LOYALTY TOP 3 CLICK N’ COLLECT ATTRIBUTES AS KEY DRIVERS

Amazon takes Approximately • User-Friendly App/Site • Availability of Items 50% • Fresh Food Quality 1st of consumers access 1 in 2 are the top key attributes place in 7 of 12 eCommerce equally consumers are likely to to focus on for top attributes, and (50/50) in home delivery use a different retailer retailers in order to drive and click & collect. When next time they shop for NPS and win in excluding Amazon, this groceries online. Loyalty eCommerce shifts marginally (43/57). is low and consumers are Top 3 When excluding PC trying different providers. Express, this shifts in the Big opportunity to win In 11 of 12 attributes opposite direction (and lose) eCommerce (58/42). Both avenues shoppers must be optimized and are critical to winning in Caddle® Inc. Confidential eCommerce held the highest NPS (67) across the country, while Winner & Loser

held the lowest NPS (-13.8) across the country, ranked bottom 3 in all 12 factors, and last in 10 of 12 factors.*

Caddle® Inc. Confidential *Sample size <100 Overall Online Shopping Experience | National NPS = % Promoters (9-10 ratings) minus % Detractors (0-6 ratings)

eCommerce Banner Rankings Net Score - National Amazon 66 Costco.ca 53 PCExpress.ca 47 Saveonfoods.com 44 Metro.ca 42 Walmart.ca 41 Instacart 33 Voila.ca* 33 GroceryGateway.com 22 IGA.net 18 Londondrugs.com* -11

Source: Caddle Inc. Q4 2020 Grocery eCommerce Customer Experience Tracker *Sample size <100 How NPS & Key Drivers Work

Predictors Attribute A

Attribute B Outcome

Attribute C Net Promoter Score

Attribute D Higher impact Higher Attribute E

• Consumers rated satisfaction among 12 attributes | used to measure the impact of each attribute in the overall NPS for each banner • Key Drivers | used to prioritize areas to focus on, but do not need to match the banners’ highest/lowest performance metrics • The Top 3 Drivers (predictors) | identified in the following slides

Source: Caddle Inc. Q4 2020 Grocery eCommerce Customer Experience Tracker Attribute Ratings | National

NET SCORE = % 9-10 ratings minus % 0-6 ratings Rank 1st Rank 2nd Rank 3rd

Order Easy to User Cleanliness Price online Availability Fresh food Payment Keeping you available/ Order Return Secured pick up friendly and vs. in- of items quality options updated delivered accuracy policy transaction order app/site hygiene person quickly Amazon 63 68 53 - 71 61 61 62 65 65 56 57 Costco.ca 46 59 48 39 51 51 45 45 45 50 44 49 PCExpress.ca 63 53 38 43 67 51 60 67 57 58 51 54 Walmart.ca 63 45 34 33 68 45 53 57 58 50 42 44 Saveonfoods.com 62 43 42 40 64 41 57 66 56 59 51 52 Metro.ca 47 50 32 48 55 43 47 53 45 44 24 34 Instacart 30 46 25 24 45 38 41 40 34 33 19 34 Voila.ca 64 36 17 52 83 47 48 64 70 28 -22 31 GroceryGateway.com 7 43 26 10 8 22 12 8 4 11 15 17 IGA.net 11 27 18 11 23 25 16 16 16 21 11 23 Londondrugs.com -14 13 -6 -19 16 3 -21 -12 -10 -8 -10 -2

Source: Caddle Inc. Q4 2020 Grocery eCommerce Customer Experience Tracker Amazon is the clear UX winner NET SCORE = % 9-10 ratings minus % 0-6 ratings Rank 1st Rank 2nd Rank 3rd

Source: Caddle Inc. Q4 2020 Grocery eCommerce Customer Experience Tracker Competition trails Amazon & Costco

NET SCORE = % 9-10 ratings minus % 0-6 ratings Rank 1st Rank 2nd Rank 3rd

Source: Caddle Inc. Q4 2020 Grocery eCommerce Customer Experience Tracker Voila Leads Early in Fresh Food Quality NET SCORE = % 9-10 ratings minus % 0-6 ratings Rank 1st Rank 2nd Rank 3rd

Source: Caddle Inc. Q4 2020 Grocery eCommerce Customer Experience Tracker Home Delivery vs. Click n’ Collect Is pick-up greater than home delivery? Data suggests that being clear of your objective with consumers will drive the behavior you desire

Q: IN YOUR MOST RECENT ONLINE GROCERY PURCHASE, WHICH ONLINE GROCERY SHOPPING METHOD DID YOU USE?

n = 1,668 n = 1,265 Caddle® Inc. Confidential 12/01/2020 12/01/2020 If you show them, they will come Focus on click n’ collect clearly resonating with consumers

Caddle® Inc. Confidential Customer likelihood of Grocery Retailer Net Promoter Score changing retailers after Those that do pick last purchased from up are more sticky most recent purchase** 67 60.6% ● Customers are more likely to switch from online grocery retailers if they primarily make home delivery purchases 54 61.6% ● Amazon is top of mind when a consumer wants something, prime 52 33.7% members are likely buying less items per basket than at any other retailer. 43 46.4%

Caddle® Inc. Confidential Caddle spent the past 4 weeks tracking consumer shopping habits as we approach Holiday Shopping the holiday season. This tracker provides insights on products Tracker purchased, spending data, timelines, as well as shopping habits compared to Holiday Season 2019.

Caddle® Inc. Confidential Online sales boom while In-store struggles Some stores and malls had lineups, but most remained under capacity limits throughout the day

Caddle® Inc. Confidential Money left to spend 1 in 3 consumers have either finished shopping or are planning not to spend this season as of December 7th 21% 23% 11% of consumers have completed have not started their Christmas do not plan to buy anything this their holiday shopping shopping, with 66% of the group holiday season not even having started a list

Will new habits change holiday shopping in the next normal?

Caddle® Inc. Confidential Q: WHICH OF THE FOLLOWING CATEGORIES HAVE YOU ALREADY PURCHASED AS PART OF YOUR HOLIDAY All dressed up with SHOPPING? (SELECT ALL) nowhere to go

● Clothing and accessories still #1 despite pandemic limiting social gatherings this holiday season and into 2021 ● Gift cards and subscriptions popular this holiday season: 1 in 5 consumers are already purchasing this season ● Offline toys are still a viable category for the holiday season

n = 863 (Holiday Shopping Tracker) 12/07/2020 Caddle® Inc. Confidential Men are making big entertainment purchases

Women are 83% less likely to buy entertainment items

Q: WHICH OF THE FOLLOWING CATEGORIES HAVE YOU ALREADY PURCHASED AS PART OF YOUR HOLIDAY SHOPPING? (SELECT ALL)

Men Women Caddle® Inc. Confidential n = 232 n = 743 12/07/2020 12/07/2020 More gift card purchases are coming Data suggests that being clear of objective with consumers will drive the behavior you desire

Q: WHICH OF THE FOLLOWING CATEGORIES DO YOU PLAN TO PURCHASE AS PART OF YOUR HOLIDAY SHOPPING? (SELECT ALL)

Men Women Caddle® Inc. Confidential n = 203 n = 651 12/07/2020 12/07/2020 Big spenders plan to keep spending 3.5% of consumers have spent more than $1,000 on holiday shopping, and 65% of those shoppers plan to spend more than $1,000 MORE as of Dec 7th

Q: IF YOU HAVE ALREADY MADE PURCHASES FOR THE Q: HOW MUCH DO YOU PLAN TO SPEND ON HOLIDAY HOLIDAYS, HOW MUCH HAVE YOU SPENT? SHOPPING?

spent more than $1,000 n = 3,615 n = 131 Caddle® Inc. Confidential 12/07/2020 12/07/2020 Prime time holiday shopping is now in October Consumers who were likely to spend less grew by more than 5X, showing those purchases went towards Amazon Prime Day

Q: COMPARED TO THE AMOUNT THAT YOU SPENT ON Q: COMPARED TO PREVIOUS YEARS, HOW MUCH DO YOU HOLIDAY SHOPPING LAST YEAR, WOULD YOU SAY THIS PLAN ON SPENDING DURING CYBER MONDAY THIS YEAR? YEAR YOU WILL HAVE SPENT…?

n = 7,337 (Holiday Shopping Tracker) | n = 4,818 (Cyber Monday) n = 3,605 (Holiday Shopping Tracker) 09/13/2020 | 09/15/2020 11/23/2020 Caddle® Inc. Confidential Final Key Takeaways

Prime Day pulling forward Seasonal Shopping the holiday spend Grocery CX Value and Speed are King!

Early success for Voila Grocery prompting case for expansion eCommerce Click n’ Walmart winning curbside Collect pick-up with clever advertising

Ads Matter

Focused creative driving desired behaviour for PC Express & Walmart Caddle® Inc. Confidential 1. Agility in research has never been more critical 2. Evaluate the risk of not running research Next Steps 3. Make better decisions, FASTER

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Ransom Hawley Colleen Martin CEO Vice President | Insights Solutions [email protected] [email protected]