Retail: Online, Offline, All the Time

Goldman Sachs Exchanges

Julia McGonagle

Business

4.4 • 1K Ratings

🗓️ 16 June 2017

⏱️ 28 minutes

🔗️ Recording | iTunes | RSS

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Summary

The retail sector is at the epicenter of technological disruption and changing consumer behavior. But according to Goldman Sachs' Kathy Elsesser, global chair of the Healthcare Group and the Consumer and Retail Group in Investment Banking, and Kim Posnett, global head of Internet Investment Banking, these shifts are more evolution than revolution. An omnichannel approach, combining traditional brick-and-mortar and ecommerce offerings, is emerging as the primary way forward for companies at both ends of the spectrum. This podcast was recorded on June 8, 2017. The information contained in this recording was obtained from publicly available sources and has not been independently verified by Goldman Sachs. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty as to the accuracy or completeness of the information contained in this recording and any liability as a result of this recording is expressly disclaimed. This recording should not be relied upon to evaluate any potential transaction. Goldman Sachs is not giving investment advice by means of this recording, and this recording does not establish a client relationship with Goldman Sachs. Copyright 2017 Goldman Sachs. All rights reserved.

Transcript

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0:00.0	This is Exchanges at Goldman Sachs where we discuss developments currently shaping markets, industries
0:13.9	in the global economy. I'm Jake Seward, global head of corporate communications here at the
0:17.4	firm. Thanks to technology, particularly the rise of the smartphone, the way we shop is
0:22.1	changing rapidly, and so naturally retail companies are
0:25.4	adapting quickly to that dynamic environment and the changing expectations
0:29.4	of their customers. There are no two better people to discuss all things retail related than my guest today.
0:35.0	Kathy El Cesar is the global chair of the health care group and the consumer retail group in our investment banking division.
0:41.0	And Kim Paznett is the global head of Internet Investment Banking.
0:45.0	Kathy Kim, welcome to the program.
0:47.0	Thank you.
0:48.0	Thank you.
0:49.0	Kathy, let's start with you. In the United States, e-commerce's slice of the retail pie is accelerated
0:53.9	of late and its average $40 billion in annual growth over the past three years.
0:58.7	At the same time, we're seeing retail stores closing in a rate not equaled since the Great Recession. Are we witnessing a
1:04.7	permanent shift in the way Americans shop? I think that we are seeing a fundamental
1:09.6	shift. I guess I just step back and say that you know global retail sales are about 23 trillion dollars of that about 2 trillion is actually an e-com.
1:19.0	So it's a relatively small slice call it 8 to 9% of overall sales.
1:24.1	Having said that, as Kim and I talk a lot about,
1:27.2	the retail sales are overall growing
1:29.8	about 1 to 2% in brick and mortar, but E.com is growing at 14 to 15. So the real question becomes
1:37.3	as you have a retail world that's sort of speeding up and slowing down at the same time.
1:43.6	And that's creating a lot of turbulence.
	...

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