Disruption is the new normal in retail – at least that is what the latest Forbes Insight report suggests. The report, “Retail’s New Imperative” produced in association with JDA, focuses on the development of multiple retail channels and the challenge of adapting supply chains to this new reality.
It argues that: “The massive convergence of technology and channels being driven by digitally-savvy consumers has helped turn traditional retail models upside down.”
More than 400 retail chief executives around the world were survey by PwC for the report. And it found that only 17 per cent currently reckon that their supply chains are optimal.
“With the new disruptive era of retail upon us, retail chief executives must adopt a new operating model with the supply chain at its heart to be responsive and agile enough to deliver a multidimensional shopping experience,” the report says.
And it quotes Thomas Storck, chief merchandising and multi-channel officer, Galeria Kaufhof: “Yesterday supply chain was important. Tomorrow it will be mission critical.”
Nevertheless, the report found that only a quarter of the CEOs surveyed said they would be investing heavily in supply chain management solutions over the next five years. It argues that “CEOs must rethink their strategies to address the challenges of today’s retail market and the key success factors for the customer-centric omni-channel retail environment.”
* These issues will be analysed at the Omni-Channel Conference which takes place in Birmingham next month. It will include speakers from leading retailers such as Asda, John Lewis, Tesco, Boots, Argos and Halfords.