Facilitator notes Send the pre-read materials at least one week in advance Please modify all parts of this presentation as you see fit If desirable, you can paste the contents into a different master slide design The notes will pane contain speaker & facilitator notes This presentation contains animations and other graphics. Be sure to test it in Presentation Mode using the meeting’s projector beforehand

Retail is changing. [DATE]

To discuss today Council re-introductions Review of program objectives Implementing your ideas Sustainability updates

Council introductions What two ideas did you generate in the last workshop?

Review of the Year-Long Council Program Using futures as an innovation tool

This program was developed by RILA, our trade association Facilitator notes: This workshop program was developed by the Retail Industry Leaders Association, or RILA, your trade association. RILA is the trade association for the nation’s largest and most innovative retail companies. It hosts a number of educational forums, leadership working groups, and advocates for retail interests with both the Federal and state governments. Its Board of Directors includes the CEOs or Presidents of Dollar General, VF Corporation, Lowe’s, AutoZone, Best Buy, Petco, Target, 7-Eleven, Walgreens, Energizer Holdings, PetSmart, Cabela’s, Newell Rubbermaid, Whole Foods, Tractor Supply, Unilever North America, and JCPenney.

Workshops on one another will build over the year Workshop objective 1. Sustainability Megatrends Changing Retail Define the most major changes occurring in retail and your function 2. Innovation is Required Identify innovations relevant to your function 3. Making it Work Develop a plan to begin implementing 4. Taking Innovation to Your Departments Provide tools and action plans to promote this process in your departments TODAY Facilitator notes: This year-long workshop program is a facilitated innovation process that leverages tools developed by RILA, our industry association. The objective is to open a space for innovation (Workshop 1), then provide a structured process to identify innovations (Workshop 2) and plan roll-outs for those innovations (Workshop 3). It will leverage your specific business expertise and will conclude with tools that can be brought to your teams. There are two options for the focus of Workshops 2 and 3. Select the option most relevant to your objectives and the Council’s interests: Option 1: Identify innovations relevant to your business function. Each Council member will generate two business ideas that are specifically targeted at their business function, or their area of expertise. Option 2: Identify enterprise-wide innovations. The Council will brainstorm two business ideas that leverage their collective expertise and influence. Examples include new services (e.g. product take-back, repair), new products (e.g. a line of health & wellness products), new brand marketing platforms, or more. Outcome: Capacity for our organizations to prepare and adapt to changes in the industry

Last workshop we discussed: 22 trends driving change in retail Retail everywhere Augmented reality Distributed manufacturing Advancements in biotechnology Self- and community reliance Rise of the sharing economy Empowered consumers Circular economy Shifting demographics Urbanization in the U.S. Global economic shifts New approaches to health and wellbeing Decline in ecosystem services Water insecurity Resource scarcity Time poverty Facilitator notes: Remind the Council that they discussed and prioritized the 22 trends in the last workshop. The ubiquity of data Radical transparency POLITICS & ECONOMICS Geopolitical instability Energy transformation Education revolution Coping with climate change

To be successful in the future, retailers need to INNOVATE. Building new business models Transferring learnings faster Defining new metrics of success Re-envisioning happy/healthy lifestyles Facilitator notes: Remind the Council that this program is a technique to begin identifying game-changing innovations for our business.

Exercise Implementing your ideas Facilitator notes: Exercise details on the next slides.

Individual exercise (15 min) Review your ideas and complete the Workshop form Facilitator notes: (15 minutes) The main exercise for the group is documented on this and the next slide. Present each member’s respective post-it notes to them. (15 min) For their two ideas, have each member individually complete the template form provided.

Question: Do we want to present these ideas to our senior team Group discussion (15 min) Each member reports their next steps to the group Identify opportunities for members to support one another Identify opportunities to keep track of progress and held accountable Facilitator notes: (25 minutes) The main exercise for the group is documented on this and the previous slide. 3. (15 min) Each member reports their next steps to the group. Identify opportunities for members to support one another. 4. (10 min) Collectively identify opportunities to keep track of progress and held accountable. For example, it could be to delegate responsibilities to Council members’ direct reports; develop Working Groups to pursue specific ideas; organize periodic meetings; etc. Also, use this time to decide on possibility of meeting with company’s senior team to present the ideas generated through this workshop process. This is a good way to get face-time with the company’s senior-most leaders and to help them understand how sustainability aligns with the business’s priorities. Facilitator should capture a summary of the conversation. Question: Do we want to present these ideas to our senior team

Sustainability updates [Include any updates from the sustainability team] Facilitator notes: Facilitator can use this time to provide a brief update or next steps on the company’s sustainability program.

Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has. – Margaret Mead “ ”

Closing Thoughts or Questions?