In challenging economic conditions, consumer and retail CEOs remain optimistic about growing the business and improving earnings, albeit at a modest rate.
Customer experience is a high priority, as companies pursue personalisation, while supply chain disruption looms large, due to conflict, tariffs and climate shocks. Mergers and acquisitions (M&A) are an important driver of growth, but leaders are planning more strategic, rather than transformational deals.
Perhaps unsurprisingly, AI is a major investment priority, as the sector scales up its usage of agents, automation and analytics. CEOs are already seeing performance improvements in productivity, efficiency and customer experience, although they are aware of the need to establish trust in AI, and overcome heightened cybersecurity threats, through improved controls and governance. CEOs recognise the far-reaching impact of AI on the workforce and are ahead of the curve in actively redesigning roles and career paths.
They also acknowledge that key AI skills are in short supply and are racing to train existing staff as well as bring in external capabilities.
Mass retirement is a further workforce issue, with a pressing need for knowledge transfer. The sector is also ahead in integrating sustainability with business strategy, as a source of competitive advantage rather than a mere compliance objective.
AI also has the potential to boost energy- and resource efficiency and reduce carbon footprint, as consumer and retail companies strive for greater resilience, and avoid damaging supply chain disruptions.
Consumer and retail CEOs have become accustomed to uncertainty and rapid change, and this year’s CEO Outlook finds the sector in the midst of technological transformation and focused on steady, sustainable growth.
