Retail’s delicate balance

The retail industry continues to be one of the most powerful forces in the world, yet profitability has declined as much as 50 percent in many of the major markets over the last 10 years. The transition to more sustainable practices is costly unless they are embedded in the whole value creation model. Retailers will need to constantly evolve, adopting new business models and strategies that will allow them to deliver on their promises.

Retail remains an integral part of society as often the largest employer and critical provider of entry-level and flexible work to serve a diverse workforce, as well as a significant charitable contributor to local communities. However, retailers can miss opportunities in that intersection between employees (who are also consumers) and community to strengthen loyalty, attract and retain talent, and sustain business through economic downturns.

Employees are one of retail’s most important assets but are often considered first as a cost center, even while retail faces an acute labor shortage. Technology investment is expensive upfront but can release pressure on the bottom line by increasing efficiencies and productivity from a shrinking workforce. Just as importantly, automation and other innovations can free employees from manual tasks and allow them to focus on what matters most: enhancing the consumer experience.