Mar. 8–9 | 9:00 a.m. to 5:00 p.m. CT | City, Mexico Mexico Retailing Forum Dynamic Growth in an Evolving Market Despite devaluations and commodity market weakness, Mexico’s overall Kantar Retail Presenters: job and wealth creation continues to grow, creating opportunities within retail and new channels. Fueling this economic growth is a dynamic middle class wielding its new financial freedom.

Join Kantar Retail to help you understand: • Changes and expectations for the Mexico 2020 consumer and what David Marcotte Brian Owens they mean for your strategic planning SVP Director, Drug • The rise of online retail in Mexico and how Amazon’s presence is constituting a competitive response • The channels and retailers with the greatest market share and where you should lean in for increased profit

You’ll walk away from this Workshop with: Timothy Campbell • Knowledge of how spending habits will change with the rise of strong Junior Analyst, Club retail holidays like Buen Fin and the Super Summer promotions • Firsthand knowledge of the steps the drug channel is taking to surpass the growth we’ve seen in the convenience channel and how you can align as a supplier partner • Awareness of the challenges that de Mexico y Centroamerica faces and its strategy for continued growth • Insight into the success of multichannel retailers and whether , Chedraui, , and Palacio de Hierro will pave the way for broader consumer engagement

Registration: Venue: Register today by emailing Camino Real Polanco Hotel [email protected] Mariano Escobedo 700 Col. Anzures Mexico D.F. 11590 +52 (55) 52 63 88 88

The analysis and conclusions presented by Kantar Retail represent the opinions of Kantar Retail. The views expressed do not necessarily reflect those of the retailers under discussion, nor are they endorsed or otherwise supported by the management of the retailer. Mexico Retailing Forum Mar. 8–9 | 9:00 a.m. to 5:00 p.m. CT | , Mexico

In this two-day active Forum, we will explore changes in the Mexico retail market and emerging best practices. DAY ONE Consumer Changes and Expectations The Future of Retail Health: Where Mexico in Mexico 2020 Is Headed The middle class in Mexico has evolved to a Latin In the last decade, Mexico has moved firmly into the American model of professional classes, dynamic middle class and with that, gained a view into the various business drivers, and aspirational poor. Increased home factors that make up the global concepts of health and ownership and suburban growth have created a need for wellness. With the government investing in national health new civic and retail space. As a result, malls have rapidly programs and poverty reduction, Mexico continues to raise expanded at new and growing transportation hubs. concerns and address such issues as smoking, disease People 40 and younger who are digitally capable and prevention, reducing the leading causes of death, and connected continue to impact society and politics and to creating awareness of good nutrition and habits. In this demand greater online engagement and transparency session, we will discuss: from retailers. • Global viewpoints on health and wellness We will explore what the future will hold by focusing on: • The major international groups addressing • The current macro factors of Mexico and its integrated these themes trade partners • How these themes are expressed in the • What the growth of malls means to consumers Mexico market • The changes in shopping and consumption • Initiatives and actions to improve the population’s health and wellness • The expansion of supporting land, sea, and air infrastructure and its impact on a more secure future Convenience and Drug Become International The convenience and chain drug channels continue to blur The Resurgent Walmart de México as boxes get bigger and trips more varied. The channels y Centroamérica are also getting more international with Walgreens Boots When Enrique Ostalé became CEO in early 2015, Walmart Alliance purchasing FASA and Farmacias Benavides and started to become one of the most rapidly changing FEMSA Comercio buying a majority share in Cruz Verde and improving retailers in the market. Reversing three in Colombia and Chile to go along with the three chains it years of poor sales, comps, and tickets, Walmart has owns in Mexico. And OXXO’s plan to add 900 stores in the re-established itself as not only the largest retailer in the U.S. is more evidence that these channels are undergoing market, but also as the market leader. In the process, a rapid transition. For drug, the pervasive health and it sold its restaurant holdings and banking operations. wellness theme is starting to drive the government, However, competition continues to improve as well. consumers, and retailers.

• How is Walmart in Mexico different from other • By adding private petrol sales, how will convenience Walmart International divisions? change in a Mexico with 65% car ownership? • What changes should we expect now that former • Why is health and wellness becoming a key driver in Walmart Brazil CEO Guilherme Loureiro has taken chain drug, and how is the channel responding to over as President and CEO of Walmart México & the challenge? Central America • How are drug chains shifting to international best-in- • What merchandising and remodeling themes should class standards? Should we expect more investment we expect in 2017? at FASA? How will the rest of the industry respond? • What does the sale of Suburbia may mean, given the various players? Mexico Retailing Forum Mar. 8–9 | 9:00 a.m. to 5:00 p.m. CT | Mexico City, Mexico

DAY TWO The Success of Multichannel Retailers Club and DIY: The Middle-Class Channels Soriana is still absorbing and shifting following its huge Continue Their Growth purchase of banners from CCM. Chedraui continues to The club and do-it-yourself channels excel at creating have success with a multichannel strategy that covers and meeting the needs of the middle class in countries convenience, grocery, and hypermart, but eCommerce only around the world, and Mexico is no exception. Costco, lightly. Department stores Liverpool and Palacio de Hierro whose Mexico sales have taken off, continues to build are growing by broadening their shopper base. And CCM into the market with remarkable sales per store. Sam’s continues to surprise with its small-store strategies. Club has recovered and found a new competitive focus. City Club’s strong real estate strategy is paying off. • What impact did buying Mega and other banners from Home Depot has a strong and dominant position based CCM have on Soriana’s competitiveness? What is the on locations surrounding midtier cities and their rapidly impact on what remains at CCM? growing suburbs. Lowe’s, however, is stagnant in a • Chedraui is highly successful in the U.S. with a growing market, and may be in play for Sodimac or Easy, different format. Will it bring that format to the one both successful and innovative Latin American home part of the market – the North – in which it does improvement companies. not operate? • Will Costco accelerate its store growth based on • Liverpool has bought into Chilean retailer Ripley. Will results? Will it change its sourcing models with it bring Ripley’s lower-end, mass format to Mexico the Pacific Alliance and Mexican port expansion (and perhaps combine it with Suburbia), or will the coming together? Ripley stake become a cash drain? • How is Sam’s shifting to create a more stable market • How will these retailers compete with Walmart now position? What product changes should we expect? and in the future? • How is the DIY market changing as remodeling and repair costs increase? Online Retail in Mexico Becoming a Reality In a highly connected market suffering from a range of • What new players could enter Mexico in 2017? How fulfillment challenges, eCommerce has been growing might they change the market? slowly. Yet 2016 may be the year that eCommerce starts to shift the market. Amazon continues to expand its portfolio; Linio and MercadoLibre both reported excellent years; and all have “created” retail holidays with El Buen Fin, Black Friday, and Prime Dia. Walmart and Liverpool continue to dominate brick-and-mortar with rapidly changing and improving websites and execution.

• How are the new online retail holidays changing consumer engagement? • What is unique about existing eCommerce players’ success? • How quickly should we expect eCommerce to change over the next three years in Mexico? • What makes fulfillment work (or not work) in this market?