76% retailers feel their model needs change: study
May 29, 2019 - United States Of America
Research unveiled recently at the World Retail Congress in New York shows retailers are struggling to cope with the pace of industry evolution. Seventy six per cent of the world's top retailers believe their model needs to change for them to remain relevant in the next five years. A further 21 per cent said they have doubts about their models’ sustainability.
Only 3 per cent of retailers believe their current proposition will remain sustainable in the next five years.
The research, titled 'High Velocity Retail', was conducted by management consultancy firm OC&C and global e-commerce platform eShopWorld in partnership with World Retail Congress. Drawing insights from interviews with the world's leading retailers as well as analysis of financial performance and customer ratings data of 800 retailers, it identifies the path to success for retailers in a world where the speed of change is unprecedented.
"For retailers, a good business model is no longer enough: being great achieves enviable success, but being average is punished hard. Retailers are recognising this: three quarters said they need to change their business models in order to be relevant in the future," said James George, international managing partner at OC&C.
Crucial rules for winning in a high velocity world revealed by the research are a considered strategic positioning, clear trade-offs by retailers about where they operate at the frontier and where they can afford to follow the leader, and the need for a strategy to attract cross-border consumers. (DS)