1. Transload Services High velocity transload services for Kohl’s, Best Buy, Nike, Shopko, Ross &The Limited Programs coordinated with container level ASN information/vessel schedules Data is available real time via PT web site and reports delivered as required Cartons scanned and reconciled against ASN container information Outbound loading configured to maximize cube while meeting customer loading requirements. Deconsolidation facilities in port locations. provide regional product handling & distribution All locations are C-TPAT compliant and covered by 24 x 7 security Automated & manual facilities can offload, sort, segregate, & load product for multiple destinations Data is controlled through TMS from origin departure to U.S. arrival through outbound trailer movement 1

2. DC Bypass Develop strategies to segregate merchandise by type, replenishment, direct to consumer, seasonal programs, and regional bypass. Reduce touches and increase speed to market. PT (3PL) to act as remote Client warehouse, use Client computer system / software or migrate to PT WMS platform. WMS is Manhattan Associates Integrated Logistics Solutions (ILS). Systems and Web visibility are also integrated in the PT Transportation Management Systems platform “SoftPoint” PT provides the following services: Cross dock direct to pool points, LTL agents, or DCs as required Act as local Pool Agent, providing final mile delivery Provide Direct to Consumer and “Online” fulfillment Provide storage, maintain Inventory, and provide Web visibility Detailed Quality Assurance and audit programs Scalable solution across PT business units 2

3. Store Delivery Capabilities PT Delivers to over 850 stores nationwide daily Pool Distro, unload, sort and segregation of inbound cartons Complete Scan, carton audit trail, delivery confirmation Dynamic routing, dedicated customer service Time definite delivery, delivery windows, to malls and stores Lift gate deliveries, Off hour, unassisted delivery expertise 3

4. Store Delivery Capabilities 4

5. Dedicated Store Delivery PT provides “Dedicated Store Delivery” services for major retailers in several markets in the country Service includes store delivery, backhaul freight, and yard switching PT also provides a dedicated on site representative to serve as an operation liaison between PT and the client In 2013 PT ran in excess of 14.8 million miles with an on time percentage of 99.8% 5

6. Today’s Discussion Points The PROMISE at the order point drives: “click to pick” cycle time “pick to ship” cycle time “ship to delivery” cycle time This sets in place specific requirements for: Order management, technology Inventory locations (getting local) Logistics and site selection requirements 6

7. Promises Matter The shorter the timeframe of the promise of delivery (same day, next day, second day, three-five days or longer)… The shorter the distance between the inventory location(s) and the shopper… The closer to the buyer the inventory locations (sites) must be deployed. 7

8. Driving Demand “toolbox” Utilize multi channel strategies to drive demand: –Direct to consumer through hosted and other hosts web sites. –Wholesale through other retailers stores and their web sites. –TV Infomercials, Advertising, direct response, demonstrations, how-to support. –E-mail and social media, daily deals (E-Bay, Groupon). –Cultivate value, long term loyalty. 8

9. The Strategy Challenge Single or multiple points where inventory is stored for fulfillment to buyers? Blended strategy - pick from DC/FC or stores inventory? Ship from inventory or make to order? Shipping, returns, taxes/duties/classification. 9

10. The Inventory Challenge Channels for fulfillment: –Direct from DC, FC or store? –RFID to stabilize store picking results. –Prompt from a third party hosted site, marketplace partnership strategy. –Amazon’s everything, everywhere program. 10

11. The Traditional Storefront 11

12. The New Storefront(s) 12

13. The Next Storefront 13

14. Projected Impact of E-Commerce By 2025, it has been estimated that E- Commerce will represent 30% of all Retail Sales and account for $2.7 Trillion in total sales.(Source: Dematic) 14

15. 15

16. 16

17. 17