Bunzl Retail Services - Storepoint 2024 Presentation

The

POWER BUNZL of

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Meet Our Team

Rich Bonaker

Kari Palmer

Chris Spinosa

Tim Dougherty

Steve Kramer

VP Strategic Business Development

Director of National Accounts

Sr. Director of Business Development

Sr. Director of Business Development

Sr. Sales Consultant

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How is Bunzl Different from a 3PL?

3PL Dedicated account manager

Shipping & receiving

Reporting & program analysis

FTL and LTL freight shipping

Customer service to support stores

Storage

Online ordering for store associates

Kitting

Demand planning

Material consolidation

Sourcing

Picking & packing

Return management

Packaging design & sourcing

Systems Integration

Visual décor, design & sourcing

Receive, store & distribute goods

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Retail Industry Trends and Opportunities 2023 Holiday Sales set a new Record 2023 Full Year Sales all-time high 2024 Expected to Grow at 6.7%+

Commitments made to investors – must deliver the growth!

Retail Growth – New Stores NRF predicts 2024 new store openings at a rate 9% higher than in 2023. Aggressive plans being challenged with available realty constricting and rents expected to continue to rise. Retailers must act swiftly to meet published goals

BRS New Store Opening Services Streamline an extremely chaotic process. Case Studies demonstrate significant savings and consistently on-time or early grand openings

New Store Program Avoiding Delays • New store opening items delivered on time and in-full to meet opening timelines • KEY BENEFIT: Teams who worked repeatedly in this streamlined workflow finished

than ~20% faster previous projects

After implementation, stores opened

3 Weeks Early 7

Retail Growth – Remodel/Refresh Studies show a minimum of 8% sales lift in newly remodeled stores – and as important – store design groups are now driving brick and mortar locations to become an “Experience” to differentiate and build brands

BRS capabilities in this area allow for minimal disruption allowing stores to remain open, maintain current business, and get to new sales lift even faster. BRS Visual Design services, as well as acumen in handling Signage and marketing materials, make us the perfect partner for your refresh!

Remodel Program Streamlined Execution •

Load plans, pallet categorization, custom color wrapping, and detailed pallet summaries streamlined unloading processes and made set-up more efficient.

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Improved management of inventory at Bunzl reduced lost/damaged items by $50,000

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KEY BENEFIT: Improved processes eliminated trades waiting on materials, repeat buying of items, and extra freight costs

18% Reduction in customer’s total spend

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Retail Growth - Technology AI – the talk of every blog! Retailers need data analytics to improve predictive replenishment order patterns. Customers demand heightened focus on Cybersecurity. And Retailers need their partners to focus on innovation to help them win

BRS investments in warehouse automation, AI for demand planning, Technology for our Spend Management Portal are all bolstered by significant controls on your data and access.

IT Infrastructure & Investments

• • •

Cyber security and safety with our ordering portal We protect your data like it’s our data!

Continued investment in state-of-the-art warehouse automation

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Retail Industry Trends and Challenges Supply Chain Disruption Organized Retail Theft Returned goods at an all time high

Meeting Corporate Sustainability/ other ESG Initiatives

SUPPLY CHAIN DISRUPTION Red Sea shipping issues, Wars in the Middle East and Ukraine, Tensions with China, New rulings on tariffs and duties on packaging, manufacturing labor shortages and countless other factors can derail Retailers from achieving their goals BRS solutions help to mitigate these factors – Sourcing capabilities and myriad factory relationships across the globe provide alternatives, while domestic facility capacity buffers JIT demands and allows for opportunity buys to improve COGS

In-House Solutions Reducing Capital Investment • Full packaging rebrand rollout using Keenpac, Bunzl’s in-house packaging solution • Domestic and international production to avoid supply chain disruptions • Seasonal décor sourced in-house via CTC • KEY BENEFIT: Leveraging Bunzl’s capital for all production

$0.00

Customer capital invested before delivery to store 14

Material Consolidation Labor and Facility Savings • Able to redeploy internal warehouse labor to save on hiring costs, overtime, and temp labor • Repurposed internal space to save on outside storage costs

50% Reduction In Customer’s Cost to Serve after significant savings and discounts

• Dedicated space in Bunzl warehouses allowed Five Below to negotiate volume discounts • KEY BENEFIT: Savings of over 8% of COGS on key program items

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Corporate Sustainability Initiatives Not just for Sustainability officers anymore - 67% of chief supply chain officers are now overseeing environmental and social sustainability KPIs, with many setting ambitious targets for carbon neutrality within five to 10 years.

Our Core Values are your Core Values! Since 89% of Consumers believe Brands need to do more to reduce their carbon impact, we are here to help.

Alternate sourcing and product solutions, shipment and miles reductions, tracking and reporting of activities are all ways that BRS partners with retailers to reach their ESG targets

Supply Distribution Improving Sustainability Goals • Managing weekly, consolidated supply delivery to over 3,000 stores across North America and Canada • Transitioned all stores to FSC Certified, Phenol-free receipt tape.

• Successful switch from poly to paper bags in select markets to meet new environmental legislation requirements.

• KEY BENEFIT: meeting sustainability goals through smart sourcing

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Freight Optimization Improving ESG Using fewer trucks to supply new stores saved the customer an estimated

$55,000 Demand planning and smart consolidation eliminated

$33,000

in expedited freight costs

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90% Estimated Reduction in landfill waste compared to traditional pre-filled containers

VS 6 Bags of ChemPacs

Aqua ChemPacs is the industry leader in manufacturing and contract packaging quart-sized, dissolvable liquid chemical packs.

600 quarts 6.3 pounds 1,470 in3

1 Pallet Conventional Cleaner 600 quarts 1,200 pounds 96,000 in3

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Returned Goods at an All-Time High Last year, a record 14.7% of all sales were returned – even with stricter return policies. But free shipping drives customer loyalty even higher so this trend will be here to stay – and Supply Chain pros have to pick up the pieces. And with “Re -Commerce” emerging as a growth platform, this becomes an opportunity rather than a problem BRS has crafted Customized Returned Assets and Reverse Logistics Programs for multiple retailers. This has allowed our partners to save $$ while ensuring assets are maximized. We can also help when a store needs to be De-Commissioned

RETURNED ASSETS PROGRAM • We are prepared to handle the secondary issues with New Stores & Remodels

• Return Overbuy • Return Excess of Assets • Return of old assets displaced: Restock, Recycle, Refurb, Liquidate, or Return to Vendors

• Special projects management

Organized Retail Theft Retailers are now forced to reimagine their Front End for greater focus on security and less on labor savings related to the Self-Checkout strategies of the past few years

Let BRS pre-build and stock your new front-end kits in a way that will streamline the transition in a rapid and cost-saving manner!

THANK YOU! sales@bunzldistribution.com 23

Visual Merchandising & Creative Solutions

Bunzl Retail Services, CTC, and Keenpac comprise Bunzl – Retail Division. Bunzl is a global distribution and outsourcing provider headquartered in London.

With over 160 warehouses in North America and over 360 worldwide, Bunzl is a leading provider to retailers of all aspects of their supply needs, spanning 34 countries and 5 continents with over 30,000 employees globally.

create, source

deli ver

Retail Packaging

Distribution

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Trusted to Serve Retailers Worldwide 360 Warehouses Worldwide

19K Global Employees 31 Countries With Sourcing Capabilities World Class Sustainability Standards

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MORE THAN A VENDOR Bunzl acts as a true partner to help retailers reach their goals.

We could not have accomplished this fantastic achievement without all of you! Together we are truly achieving the impossible!

STOCK PICK PACK

SOURCE

CREATE

The Leading

ONE-STOP-SHOP For ALL Retail Supply Needs

CONSOLIDATE & KIT Per customer, per store

DISTRIBUTE

YOUR ONE STOP CUSTOM PROGRAM

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Warehouses Bunzl is continuously evaluating and optimizing our North America footprint.

Proactive lease management and relocation to achieve lowest real estate costs to benefit our customers.

Continued investment in automation and warehouse efficiencies.

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Supply Distribution Spend Management Tools Efficiency & Personalization: With Bunzl’s Spend Management Portal, an online catalog and ordering site is uniquely tailored to each customer ensuring that their stores have exactly what they need when they need it.

Transparency & Tracking: Bunzl’s portal provides reporting, transparency, and organization to a major cost center of our customers’ businesses.

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In-Store Marketing & Signage Programs EXPERTISE • Eliminate excess signs being shipped using store traits • Ensure signs are displayed upon arrival by clearly identifying shipments as visual merchandise • Bunzl’s e-Commerce tool for signage replenishment stops duplicates orders and sets caps on order quantities to reduce waste PROVEN TRACK RECORD • Kitting items from multiple print suppliers arrive as one shipment to the store • Reduce excess inventory utilizing Bunzl sophisticated forecasting tools • Stay green with Bunzl recycle/reuse program • Bunzl Enterprise Reporting allows you track national campaigns by store

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Visit Our One-Of-A-Kind Showroom!

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