The growth of online and omnichannel retailing continues to exponentially scale. With many consumers having now reset their level of reliance on technology and digital platforms, data-driven online retailing is the new oil as the channel-agnostic customer becomes more demanding than ever.
Retailers and consumer brands who are truly omnichannel and remain agile in their reinvention will deliver on their customer promise and drive growth.
While retail has had its share of challenges, that will likely last beyond the pandemic, many brands are forging ahead to harness unexpected opportunities to transform and build competitive advantage.
In April 2022, KPMG’s retail leaders James Stewart and Lisa Bora hosted our webinar with special guest, Mark Teperson, Chief Strategy and Product Officer at Afterpay, an Australian-born 'Buy Now Pay Later' platform with a vision to create financial freedom for all.
The customer doesn’t see channels. Channels is a language of business. The customer simply wants a universal experience across whatever touchpoint they chose to engage with.
Key takeaways from the session
Data is one of the most valuable assets that a business has and retailers are notoriously bad at investing in their data. Retailers sit on a treasure trove of information that is often not easily accessible or well understood. Understanding who your customers are and what influences them all rests in their data. By understanding the data, you can understand your customer’s problem statements so you can reimagine their retail experience to solve for this.
There is a view that current retail metrics may be outdated – retailers should be considering a shift from sales per square metre to impact per square mile. It’s important to keep top of mind what impact is your online store having on your physical locations. This shift of mentality is not easy for a retailer that has primarily focused on the physical store and done this well – digital transformation can initially feel both foreign and a potential threat to your existing business model. A solid understanding of the interconnectivity between your online store and your physical store will force you to reimagine your investment equation.
While a strong shared vision and alignment is important between members of the retail ecosystem, a shared culture and view on what world you want to create is where the rubber hits the road.
By 2030, discretionary retail spending made up by Millennial and Gen Z will account for almost half (48%) of all retail spending. The core digital behaviour of this cohort will fundamentally shift purchase behaviour and demand retailers to respond over the next 10 years.
The task at hand for all retailers is to remain relevant to a customer base that is rapidly changing and being disrupted by a new cohort of digital native consumers. These customers demand retailers to think more than ever about how to reimagine the omnichannel customer experience to capture spend and loyalty.
Watch the webinar
Find out more
The Australian Retail Outlook – co-produced with Inside Retail Magazine – offers key insights into the year ahead.
In addition to the annual Inside Retail survey results, KPMG retail specialists dive into the key trends and forecasts including expert commentary on topics including personalisation, supply chain agility, ESG, business model transformation, merchandise planning and omnichannel reporting.
