Welcome to the era of resilient retailing

To be a retail CEO in today’s world has never been more challenging. And the worst of it is that many of the challenges are completely beyond any retail leaders’ control.?

When the World Retail Congress met in Rome in April, the expectation was that discussions would be focused on understanding what had happened to retailing around the world as a result of the Covid-19 pandemic and how retailers would have to focus on the next phase of retail development.

But even though that formed a major part of the content, another dark cloud had started to gather and that was the invasion of Ukraine. The war has thrown a “massive monkey wrench” into what was a gradually improving post-pandemic picture, asserted Deloitte Chief Global Economist Dr Ira Kalish in his opening keynote address at the Congress. Kalish went on to say that the war was threatening to massively increase the risk of a global recession.?

Since April, the fallout from the conflict in Ukraine coupled with the mounting unforeseen consequences of the pandemic and multiple rounds of lockdowns has, as predicted, led to a world teetering on the brink of recession. Retailers who had been seeing a welcome return of customers to stores and a reawakening of life in towns and city centres are now facing inflation rates not seen for 40 years, supply chain issues and product shortages, a recruitment problem, an energy disaster and a cost-of-living crisis for millions of consumers.?

So how are retailers around the world coping with this perfect storm? The World Retail Congress has just published its latest report which brings together contributions from 19 senior retailers and industry leaders which is now available to download. Many retailers talk about the need to develop a new “resilience” in the face of these challenges and “Resilient Retail” has been identified as one of our core areas of focus under the 2023 World Retail Congress theme of? ‘Retail leadership for extraordinary times’.?

What is most striking about the retailers’ experiences shared in our latest report is that they are rising to the challenge and already identifying and developing what and how they should respond to help become more resilient and support their customers and employees.??

Inflation is an issue being faced in all markets and retailers are learning how to adjust by focusing on delivering value to customers facing a cost of living crisis. This is absolutely the time for retailers to be even more on the side of the consumer. Some major retailers are taking a hit on their margins in order to deliver the best possible prices.??

The on-going challenges in supply chains are forcing retailers to begin bringing production back closer to their home markets. Automation and technology will help deliver efficiencies at a time when businesses will have to be leaner and more “resilient”. Retailers are learning how to make their businesses more attractive and rewarding for people to work there against the background of a deepening war for talent. Both stores and ecommerce platforms are going to have to move to the next level if they are going to keep winning customers. And having a clear brand purpose is increasingly essential in order to communicate your values to customers, employees and stakeholders.?

Writing in the latest Congress report, veteran retailer, Simon Sussman, the Honorary Chairman of Woolworths in South Africa sums up best what defines the best retailers in today’s challenged world. Having lived through many recessions, he says that this is a time when retailers need to be clear about what they mean to their customers; it is about focusing on product and newness and ultimately he says that “I firmly believe that as retailers we have to be what we are and do it?magnificently”.

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