![]() ![]() Some players, such as Target, 3 Emma Cosgrove, “Target cuts digital fulfillment cost per order 30% as same-day demand skyrockets,” Supply Chain Dive, August 19, 2020. To serve omnichannel customers better, winning retailers are reimagining channels and bridging the gap across supply chains, stores, web presence, and partners. ![]() We believe retailers will have to bend, reinvent, and innovate to meet customers where they are-and where they’re going. The margins for error in retailing are shrinking toward zero in five areas: shopping channels, customer assistance, delivery times, equity and sustainability, and talent (exhibit). ![]() To win their loyalty, retailers will need to keep raising their games. One thing is clear: shoppers aren’t just browsing-they’re taking sides. In case that to-do list doesn’t seem long enough, consider that one in three shoppers now expects same-day delivery-a share that will accelerate as fast-moving retail giants and nimble start-ups compete in the realm of customer experience. And with high employee turnover and the need to keep up with rapid changes in the marketplace, retailers must train new hires and longtime employees quickly, effectively, and at scale. Similarly, in-store staff need to recognize when customers need help-and when they don’t. As the shopper continues to change-and expects retailers to do the same-customer experience, store operations, and talent become more inextricably linked on the journey to keep pace with customer preferences.Ī great customer experience, in store and online, now requires end-to-end product availability and visibility, which in turn requires first-rate operations: talent in IT, logistics, procurement, fulfillment, and other functions. The implications for retailers are profound. ![]() 2 McKinsey Inclusive Consumer Survey, October 2021. Among our survey respondents who agreed that companies should pledge to support Black-owned brands, more than 40 percent intentionally buy from Black-owned brands and are bigger spenders overall, doling out an average of 30 percent more on holiday shopping. As one 20-something shopper told us, “I don’t spend money in places I don’t believe in.” According to our survey of 999 American consumers in 2021, 45 percent of all consumers and more than half of Gen Z, millennial, and Black consumers believe companies should support Black-owned businesses. However, consumers today are likely to be looking for more than convenience and cross-channel connectivity. “Instead, they’ll need to rely on full PIPE (private investment in public equity) coverage to account for investor withdrawals from SPACs.” But IPOs, however, are expected to continue as tech companies will carry on raising significant sums at high valuations, said Hoorvitch-Lavi, “but with the decline in valuations, we expect to see less SPACs overall.Hear two of the authors discuss the “five zeros” in greater detail on this related McKinsey on Consumer and Retail podcast episode. And due to the Ukraine-Russia war, several SPAC mergers have been withdrawn in the past month, so it is unlikely that companies will choose this route again. “SPACs haven’t performed well in the long term, and companies will probably be more hesitant to raise money through this method,” Gozes said. If there were 25 IPOs in 2021, then we’ll see far less this year,” she said, noting that consolidation is most likely, with companies combining their assets, liabilities, and other financial items into a single entity. “This issue is global,” explained Alroy, “and not just exclusive to Israel. Experts say that the big IPOs and SPACs that were so popular in 2021 will decline in popularity over the coming year. ![]()
0 Comments
Leave a Reply. |