Retail’s responsible reset
The five imperatives for retailers as they refocus on post-pandemic profitable growth.
No one could have predicted a year quite like the one just experienced. And yet some retailers have shown remarkable resilience, using the crisis as a catalyst to accelerate digital innovation and pivot to new business models.
What does that mean in practice? We’ve identified five imperatives—digital, fulfillment, sourcing, talent, and data—that we believe are essential to enable growth in the post-pandemic world.
These must be complemented with a genuine and purpose-led commitment to environmental, social and governance (ESG) principles and underpinned by modern technologies, enabled by cloud.
Now the focus shifts to the future. And while much remains uncertain, it’s clear the pandemic has transformed many of the priorities and operational realities of the retail industry. It’s vital that retailers now reset their businesses—and create an agile culture of “continuous reset” and reinvention that enables them to maintain a focus on sustainable and profitable growth.
With the pandemic accelerating digital adoption by several years, the channel-less retail shopping future arrived sooner than expected. Retailers must rethink how they engage customers with their brand.
2021 worldwide digital shopper penetration
Getting products to customers has become increasingly costly and complex. Retailers should use intelligent data analytics to predict how best to serve the most profitable, highest value customers—and keep them coming back.
Almost half of retail executives agree their organization is meeting customer expectations for order fulfillment.
Rethink the supply base, focusing on value expansion, sustainability, transparency, and surety of supply.
Customers want transparency, which creates a new value equation for retail—to balance supplier cost against service levels, sustainability and resilience. By treating vendors as true partners, retailers can benefit across the value chain.
of global consumers report shopping more responsibly now compared to pre-pandemic.
Retailers need to think how their culture and employee value proposition can be used to retain and attract talent. This includes defining a purpose-driven culture that sustains equity and diversity, where everyone feels they have a chance to thrive.
Only 21% of retail executives say big data analytics is used extensively across their organization.
Continually making decisions with data at scale and speed—and finding ways to monetize data effectively—requires a significant shift in approach for most retailers. Only a handful of companies have made headway on this journey so far.
Fewer than 5% of the Global 1000 have made significant headway on the data journey so far.
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