How retailers can create value through disruption.
Disruption is inescapable, and the retail sector is no exception. Technology is advancing, consumer trends are constantly evolving, and the competition from emerging ecommerce brands is on the rise, making it harder for some retailers to keep pace. All the while cost pressures have increased, and are taking their toll on cash flow and profit margins. However, for retailers that proactively engage and address these challenges head on, there’s light at the end of the tunnel. In fact, no matter what their current financial position, the time to act is now. Being able to identify the early warning signs of financial distress is vital. Businesses that are trading profitably can’t afford to become complacent. Devising robust contingency plans in the event of a downturn, assessing their working capital to uncover hidden pockets of value, and conducting regular stress tests to ensure that stakeholder confidence is maintained, can help them create a sustainable advantage.
For retailers who are under-performing, our ‘retail health check’ timeline shows that there’s only a short window to make a transformative impact, but it’s possible, if they’re prepared. Our insights uncover key considerations around rapid cost reduction, estate rationalisation, and optimal debt structures among other strategies to help businesses recover and flourish. As disruption and uncertainly increasingly become the norm, don’t get blind-sighted, get ahead. Read our full report here.