The Future of Retail Is Now!
The COVID-19 pandemic’s government subsidies, tax relief and increase in online shopping gave many retailers a soft landing at the end of what could have been a rollercoaster. Since then, retail market growth is flattening, online retail sales have stabilized, and discretionary spending is tightening.
Richard Ansell, Senior Director, Retail, discusses four skills retailers need to stay viable now and create growth into the future.
1. Master customers’ omnichannel expectations
Although customers’ have less money to spend, their physical and digital experience expectations have risen. Retailers will have to work harder to win customer loyalty, and those who can master this evolving omnichannel world will become the clear market leaders.
2. Utilize artificial intelligence and automation to free up cash
Leveraging artificial intelligence and automation to implement more efficient fulfilment operations can aid retailers and free up cash to invest in the customer experience and omnichannel growth.
3. Rationalize portfolios
Retailers should look at their existing store portfolios and rebrand or rationalize their physical store footprints to deliver the omnichannel experience customers expect.
4. Restructure financials
Retailers should consider restructuring their financials by reviewing cost lines for savings and find operational efficiencies to mitigate rising costs. Increasing cash flow with targeted offers can monetize excess inventory and re-negotiating or extending credit terms with suppliers and landlords can provide additional liquidity. Lastly, engaging early with key financial stakeholders ensures financing and capital structures are fit for purpose and capable of supporting a retailer through a softer retail environment.
Watch the video to learn more about these trends and how they may shape the future of the retail industry.