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As the retail industry goes through a period of dramatic disruption, organizations are reinventing themselves to meet evolving consumer needs and behavior. լи McLennan helps retailers achieve transformative change. By combining deep industry knowledge and state-of-the-art analytical techniques with a collaborative, hands-on approach we help organizations reduce risks, improve profitability and unlock new opportunities for growth.
Retail Perspectives
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Read MorePerspective Beat The Cost Curve Our original intention with this article was to argue that transforming the cost base of retail and consumer goods companies had become an absolute imperative, that traditional approaches to cost transformation were failing, and that new and bold paradigms were required. COVID-19 has not changed our conclusions, but instead given them yet greater urgency. We argued for bold ambitions and a massive commitment to execution. The virus has forced just that. COVID-19 has driven companies to take measures that in “normal” times would have been unimaginably drastic. In many cases, boldness born of a lack of good alternatives, and a “we have to do it yesterday” attitude towards execution, has allowed for better business continuity than many or most of us could have hoped. Despite the pain of the recent weeks and months, there is much to be learnt. Companies should build upon this experience in framing their next cost transformation program. -
Read MorePerspective Is The Surge In US Grocery Sales Here To Stay? It is no secret that the current COVID-19 pandemic has had far-reaching impacts on businesses, consumers, and society at large. While many sectors have been hit hard, others such as the United States grocery industry have experienced a surge in sales amid the crisis. For these essential retailers, the month of March was “like the lead-up to Thanksgiving or Christmas”. Bank of America reported that card spend on groceries was up 36 percent in March year-over-year. However, this has required a significant increase in costs, as grocers have needed to spend more on labor and transportation as well as stepped-up store hygiene measures and personal protective equipment in order to keep shelves stocked and shoppers and employees safe. Now the question on everyone’s mind is: how is the topline likely to develop from here on? For now, the gains in sales have been enough to cover the increased costs. But are these sales sustainable or will they disappear? Worse, is there a trough just around the corner that will offset the recent spike in sales as consumers begin to draw down their pantries? -
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Read MorePerspective Retailers Taking Alternative Insurance Routes Hurricanes. Earthquakes. Wildfires. Record catastrophe losses in 2017 and 2018 have turned the tide of property insurance pricing, which had been trending downwards for several consecutive quarters. -
Read MorePerspective Tackling the Retail and Restaurant Industry’s Technology Conundrum Despite their myriad advantages, new technologies, especially connected ones, could become major liabilities if infiltrated by cyber-attackers. But notwithstanding the potentially ruinous risks, only 28% of industry respondents to the լи and Microsoft survey said they evaluate the risks of new technologies both prior to and after adoption, while only 5% evaluate risks during all possible stages of the lifecycle. And more worryingly, 8% of industry respondents don’t carry out any evaluation. While adopting the latest technologies can lead to operational benefits, including greater efficiency and lower costs, businesses that do not take comprehensive measures to understand, measure, and address the risks associated with these new technologies could be compounding their cyber risk. And the evolving nature of both cyber risk and technology means that continuous assessment is essential to determine whether and how these technologies are expanding a company’s risk profile. -
Read MoreReport Fighting for the Future of the Supermarket Industry The online and brick-and-mortar worlds are each seeking to find the right balance between the two to satisfy a consumer palate that is more diverse and demanding than ever. Surviving and thriving means delivering the right combination of value, convenience, choice and a compelling experience that creates and sustains repeat customers. A successful supermarket CEO will need to effectively and holistically solve for a multitude of risk, strategy, and people challenges. -
Read MorePerspective Saving And Shrinking The Center Store: Fight Or Flight? How to keep an embattled grocery segment profitable. -
Read MorePerspective E-Commerce Success Is Killing The Economics Of Cheap Home Delivery Featured In Forbes -
Read MorePerspective Global Talent Trends Study Mindful of the human capital risks associated with constant change, organizations are realizing that people-centered transformation is the key to transferring the shockwaves of disruption into sparks of brilliance. -
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Report Surprises in Store "How will consumer demand for fresh fruit and vegetables shape the future of grocery retailing? Which factors will determine demand? And how can retailers meet their customers' growing demand for high-quality fresh produce? These are just some of the questions addressed in the Trend Report 2019 ""Surprises in Store"". The report was produced in cooperation with Fruitnet Media International and published at Fruit Logistica 2019, the leading global trade fair for the fresh fruit and vegetable business in Berlin. Surprises in Store is based on one of the most in-depth fresh produce consumer surveys ever conducted, research that involved almost 7,000 consumers in 14 different markets across Europe and North America" -
Read MorePerspective Regulatory Regimes to Reduce Plastic Pollution Can Extended Producer Responsibility schemes work for ocean plastic pollution? -
Read MorePerspective Managing Crowds and Other Threats During the Holidays Incidents of workplace violence are, unfortunately, not uncommon. In 2016 close to 17,000 workers in the private sector experienced trauma from nonfatal workplace violence. Their injuries required days off from work. There were also 500 workplace homicides that year, which was the highest number since 2010 and accounted for 10% of 2016’s fatal occupational injuries. While workplace violence can occur in all industries, there are some occupations that carry an elevated risk. Workers at retail outlets, bars, and restaurants are among those more prone to becoming victims of violence due to the premises’ easy and public access and constant personal interactions. With the holidays around the corner, risks increase. Financial worries and domestic conflicts tend to be magnified, while increased workloads pile stress on workers. Further, increased traffic in retail locations paired with alcohol consumption can up the risks. -
Read MorePerspective The Happiness Halo What do you get when you combine behavioral economics, breakthroughs in brain science and healthy doses of armchair philosophy and pop psychology? A new business mantra. Appeal to customers’ reason and they’re yours for a day. Appeal to customers’ emotions and they’re yours for a lifetime . -
Read MoreReport Why tomorrow’s customers won’t shop at today’s retailers In a comprehensive study, Lippincott analyzed the major technological and sociological trends that will fundamentally change the way consumers shop and interact with brands. Synthesizing the most relevant conclusions for the retail industry, we sought to answer the question: How do retailers need to change to meet the needs of the customer of the future? -
Read MorePerspective For brand success, sometimes all you need is love Brands need to build an emotional bond with its customers; love for the brand mitigates weakness in operational performance. In other words, customers are more willing to forgive mistakes. Emotional bonds act as multipliers on everything the company does, giving a greater lift from the same customer experience. Whether it’s financial services (America’s USAA or the U.K.’s Nationwide), retail (Amazon) or entertainment (Disney), it’s possible to build an emotional bond. -
Read MoreReport Experience Innovation Do you think of new technology? Flashy add-ons? Trendy menus? Today’s product innovations, like the growth they generate, are often incremental and fleeting. R&D spending rose 5.1 percent in 2015 and yet revenue for the same companies increased less than 1 percent.* Technology diffusion and globalization are making it harder than ever to stay a step ahead of the competition. And, the radical transparency of the digital world favors “Excellent” reviews over brand loyalty. So what are today’s best, most innovative brands doing to stay distinct and relevant? They’re diving into the experience. -
Read MoreReport Retail's Revolution The Future Is Here Retail is about to go through changes that could dwarf its previous revolutions. Customers are no longer satisfied with just goods; they want experiences. Physical stores are no longer needed to store products; but they are playing crucial new roles. And a retail start-up need no longer be just a new store; it can be software that facilitates new ways of shopping – globally. Are you ready?