Grocery Replatforming: Overcoming Challenges for Exponential Growth

1. Content Tailor-made For you We understand you are in the grocery business and interested in replatform. We are here to help you overcome your challenges and get your business ready for exponential growth.

2. Food retailing accounts for 8 to 10% of the overall retail share. However, in the online world, it represents no more than 3%, as grocers confront difficulties in logistics and operational costs. Nevertheless, digitalization in this sector is happening, and it is happening fast. Shopping online for groceries provides major benefits to customers: convenience, agility, price comparison, fast checkout, and simplicity for acquiring items for a recipe or meal, including dietary-restrictive ones. As the changes in customers’ behavior starts being recognized in regards to the economic rise of a new generation, few are the companies who are able to fulfill accordingly. The substantial differential dynamics for retailers will be lowering costs, increasing delivery speed, and providing a seamless e-grocery shopping experience through proven strategies. Some complexities will arise, but we’re here to help! OURVISION Food has an important role in evolution. Whatweeatandhowweeattells a lot more fromourcultureandsocietythanwecanpossibly imagine.

3. Here are the main opportunities you should be looking at in order to stay ahead of the curve. Agility Costs Every agent in this system has to learn to respond in a timely manner to market changes and act upon opportunity. A viable online operation is a combination of strategy, partnerships, and integration efforts in order to solve the fragmented food industry. Logistics Companies like Amazon and Walmart have been able to leverage their logistics expertise to transform a liability into a profitable and competitive advantage.

4. Why partner with VTEX? We are here not only to offer the technology, but to establish a true partnership. We believe that differentiating ourselves only by the features we provide does not add enough value to the relationship. Software functionalities can be developed, however trust and long-lasting relationships can only be earned. Aside from a comprehensive array of capabilities, an agile methodology and a lower total cost of ownership, we at VTEX pride ourselves on being forward thinkers and market influencers, as well as consultants to our customers. Our teams are designed to continuously and autonomously evolve our platform in order to provide a state-of-the-art experience for our customers.

5. Why partner with VTEX? 01. LATEST INNOVATION 02. CUSTOMER ACQUISITION 03. ECOMMERCE EXPERIENCE +30% +67% +7% landing to checkout average order value organic traffic +25% best result +132% best result +92% best result 05. SHIPPING & FULLFILMENT 04. SALES CONVERSION 06. IT & SECURITY +25% +54% +70% Avg time to go live 109 days approved orders conversion rate Time to market +300% best result +40% best result +416% best result

6. Digital Commerce Replatform Understand the Difference SaaS Multi-tenant, Single-tenantorOn-premises According to Forrester, 64% of retailers will replatform their digital commerce solution within the next 3 years and 87% of businesses will use SaaS within the next 2 years. This is a very strategic decision as you start to grow and perceive your current vendor cannot provide you the features and scalability you need. But how do you choose between so many options?

7. What defines True SaaS? 01 If an error or failure is found by a particular customer and then corrected, will this error also be fixed in my store? If the code is unique, once the code has been corrected, all stores absorb that fix, meaning your code tends to be error-free. When a new version of the system is upgraded, is there a queue to update customers until it reaches mine? If yes, vendor is not truly SaaS. Is it possible that my store is in version X and another in version Y with other functionalities? Again, if the answer is yes, your vendor works on the single tenant model or on-premises. 02 03 Subscription-based software, delivered and managed by thirid-party vendedor. Many vendors, however, position themselves that way but still offer a great level of complexity for the infrastructure and or/ application leyer. To help you understand what kind of provider you are talking to, make him the following questions: Customer A is online and customer B is offline, is that possible? This is, perhaps, the easiest way to verify if your supplier’s is truly SaaS or not. If truly SaaS, this is not possible. 04 When a new release comes out, do I have to devote a lot of time and resource to test and validate the updates to ensure my website works properly? If “yes”, it probably means that you’re not getting the benefits of a shared platform and it’s centralized development, testing and deployment mode. 05

8. True SaaS VTEX SaaS Single-tenant Salesforce, Oracle Cloud Commerce On-Premise IBM, Oracle ATG, SAP Hybris, Magento Delivery Model Total Cost of Ownership Time-to-market Delivery Model Delivery Model Time-to-market Total Cost of Ownership Time-to-market Ease of use Total Cost of Ownership Resiliency Resiliency Releases Releases Releases Ease of use Ease of use Resiliency On-premises Single-tenant More than 50 updates per day, on average, Upgraded by the vendor, Minimal IT resources needed during upgrades Best practices and example configurations built in, Proven across different industries, Non-technical configuration Faster implementation, Easy to use, Designed for business users, Responds in real-time to customers’ needs Auto-scaling infrastructure, Quick reaction platform development team, Endless extensibility, OpenAPI, SDKs. Multi-tenant Usually requires professionals with specific skills and know-how, Expensive customization Wide variation with different vendors, Depends on the vendor and software architecture Customers are responsible for upgrades and will have 100% control of versions and scheduling, Often very expensive and time-consuming Higher entry and operational costs, Expenditures may not be aligned to revenue since license fees are typically paid prior to revenue generation, infinite hidden costs: hardware, support, backup, operating system, middleware, database, disaster recovery environment, data centers, security certifications, etc. Potential license and/or set-up fee, Higher costs, Potential hidden and upgrade costs, Capex/Opex. Complex maintenance, Slow processes Elastic infrastructure and extensibility according to vendor It requires a lot of time and manpower to implement a new environment, Hardware purchases, Additional software licenses may be needed. Slower implementation, More complexity involved, Legacy architecture Less frequently updated (on average, once every couple of months), Upgraded by the vendor, Minimal IT resource during upgrades No license, no set-up fee, transparent pricing, pay-as-you-go, subscriptions become cheaper as your business grows, Opex, Expenses are overall better aligned with revenue

9. True SaaS VTEX SaaS Single-tenant Salesforce, Oracle Cloud Commerce On-Premise IBM, Oracle ATG, SAP Hybris, Magento Flexibility & Customization Flexibility & Customization Monitoring Upfront Costs Flexibility & Customization Mobile Monitoring Focus Focus Upfront Costs Focus Mobile Mobile Upfront Costs Monitoring Fully customizable and high effort needed for customization, Various types of expertise required Older and more rigid architecture, Customization may not be possible Laser focus on business growth, IT teams become game changers Mobile ready, Responsive, Adaptive, Mobile subdomain (“M.dot”) Significantly lower implementation costs, No hardware costs required Very customizable, newer and seamless extensible architecture, New technologies (AngularJS, REST API, JSON) Focus on business growth Needs to be developed in-house or outsourced Standard monitoring systems need to be developed in-house, Implemented using only single-tenant data Significantly higher license, set-up, hardware, and implementation costs. Initial and implementation costs, No hardware costs required Standard monitoring systems according to vendor Depends on the vendor and solution capabilities, Additional costs Need to maintain an IT team to support hardware, software and applications Sophisticated business metrics and real-time multi-tenant data analytics.

10. “The fact that we launched our store in 62 days is truly remarkable!” Elena Despa MiniPrix CMO Some of Our Delighted Replatformed Customers http://www.tvz.com.br http://www.lelis.com.br

11. Browse some functionalities we’ve selected for you 06. IT & SECURITY 05. SHIPPING & FULLFILMENT 01. LATEST INNOVATION 04. SALES CONVERSION 02. CUSTOMER ACQUISITION 03. ECOMMERCE EXPERIENCE PRODUCT CATALOG VTEX INSTORE VTEX INSIGHTS Able to handle complex product catalogs with unlimited categories, products, SKUs, attributes, and variations. This makes it easy for customers to find what they need when searching for products from recipes and grocery kits, etc. VTEX InStore enhances your physical store with all the functionalities of eCommerce, allowing you to offer the same catalog, the same product information, the same prices and promotions, all the same customer data, and the same management system. This allows for full omnichannel consistency. Through graphs, you can identify trends and correlations between different metrics, enabling you to get the most out of your commerce platform. When margins are small, being able to compare yourself to industry benchmarks can be very beneficial.

12. Browse some functionalities we’ve selected for you 06. IT & SECURITY 05. SHIPPING & FULLFILMENT 01. LATEST INNOVATION 04. SALES CONVERSION 02. CUSTOMER ACQUISITION 03. ECOMMERCE EXPERIENCE MARKETPLACE CAPABILITIES SEO PROMOTIONS You can sell your products in 20+ natively integrated marketplaces, or become a marketplace yourself. This is a great strategy to unify the fragmented food industry. Easily tailor promotions, targeting the right customers for the most effective message. It is possible to establish pricing and promotions based on SKU quantity, for example, for maximum efficiency. SEO is maximized and enhanced via metatags, 301 redirects, canonical, friendly URL’s for all pages, HTML customization, sitemaps, and robots.txt.

13. Browse some functionalities we’ve selected for you 06. IT & SECURITY 05. SHIPPING & FULLFILMENT 01. LATEST INNOVATION 04. SALES CONVERSION 02. CUSTOMER ACQUISITION 03. ECOMMERCE EXPERIENCE CONTENT MANAGEMENT SYSTEM VTEX SEARCH ENGINE RECURRENCE MOBILE FIRST Since customers may have to sort through thousands of SKUs, the native search appliance allows autocomplete functionalities because the ability to perform unique searches for many products is a must. Enable your customers to easily repeat previous orders on your website, making it effortless to shop while increasing your recurring sales. Some VTEX clients have seen over 50% of their sales coming from mobile, so it’s crucial that your eCommerce has a highly responsive design. Unlimited layout control (HTML, CSS, JavaScript, Flash, XML) is provided so your store can look exquisite while functioning most efficiently.

14. Browse some functionalities we’ve selected for you 06. IT & SECURITY 05. SHIPPING & FULLFILMENT 01. LATEST INNOVATION 04. SALES CONVERSION 02. CUSTOMER ACQUISITION 03. ECOMMERCE EXPERIENCE CUSTOMER ENGAGEMENT MANAGEMENT SMARTCHECKOUT LOYALTY AND REWARDS ADD TO CART VTEX Smartcheckout PCI DSS offers a safe, 1-click-to-buy seamless experience without the need of a password, increasing conversion rates more than 25%. During the checkout process, points may be redeemed for discounts. Rewards are configured per SKU and Sales Channel. Customers also have the ability to save previous lists and repeat orders with one-click. VTEX CEM displays dynamic content on the site based on customer behavior, segments, purchase history, or what has been sought on search engines. Add to cart in the lateral, without leaving the shopping page with applicable discounts and freight promotions featured prominently.

15. Browse some functionalities we’ve selected for you 06. IT & SECURITY 05. SHIPPING & FULLFILMENT 01. LATEST INNOVATION 04. SALES CONVERSION 02. CUSTOMER ACQUISITION 03. ECOMMERCE EXPERIENCE OMS VTEX LOGISTICS 360° MANAGEMENT Centralized order management meets customer expectations to buy, fulfill, and return goods. Customers can even alter orders already in place. Multi-docks, multi-inventory, multi-carriers per Sales Channel, Pick-up in store, and Pick-up points management with automated tracking updates. Walmart, for example, has a very successful pickup-point strategy, reducing transportation costs. This is another possibility to provide different delivery options based on geolocation. Easily integrate your existing ERP, CRM, WMS, or TMS for real-time product availability, delivery options, and package tracking information.

16. Browse some functionalities we’ve selected for you 06. IT & SECURITY 05. SHIPPING & FULLFILMENT 01. LATEST INNOVATION 04. SALES CONVERSION 02. CUSTOMER ACQUISITION 03. ECOMMERCE EXPERIENCE AGILE BY DESIGN VTEX IO SECURITY CERTIFICATIONS We allow our partners to focus on developing sophisticated business solutions while we do what we do best: focus on Software-as-a-Service Multi-Tenant complexities. . We are a PCI DSS Compliant company since 2013, SSAE 16 standards infrastructure audited, Sarbanes-Oxley, we have 2048 Bits Key and RSA encryption, and we are ‘low risk’ by QualysGuard tool. Deployments follow the agile methodology and can be as frequent as 50/day which includes: bug fixes, minor and major releases with zero-downtime, allowing your commerce platform to evolve every day.

17. Pricing that Fits your needs NOSET-UP FEE | NO LICENSE FEE | NO HIDDEN COSTS

18. | Thank You!