FIGURE 7. DISRUPTION TREND OVER TIME: RETAIL SECTOR 0.80 VIABILITY VOLATILITY (18% of companies) (33% of companies) N 0.70 O I T 2017 P Retail has spent the U 0.60 R 2016 S I 2018 2015 past seven years in D F 2014 Volatility. Peak levels O L 0.50 E 2013 of current disruption V E L occurred in 2017, as 2011 2012 T N 0.40 growth slowed and E R R bankruptcies U C 0.30 proliferated. DURABILITY VULNERABILITY (11% of companies) (38% of companies) 0.20 0.20 0.30 0.40 0.50 0.60 0.70 0.80 SUSCEPTIBILITY TO FUTURE DISRUPTION Nodes represent annual scores for industry sector Retail 0-1 scale (1= most susceptible/disrupted) Other industry scores 29 BREAKING THROUGH DISRUPTION