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Transforming for growth in Consumer & Retail

C&R leaders are seeking transformation as a way to uncover new sources of value and growth. Here's how to get it right. 

The disruptions of the past few years forced consumer and retail companies to transform operating models, reimagine ways to connect with customers, and rebuild supply chains. Now, consumer spending has revived, the threat of recession seems to have receded, and inflation is moderating. So, is it a good time for C&R companies to ease up on transformation? No. They shouldn’t, and they aren’t.

Consumer brands and retailers are still squeezed between rising input costs and high labor costs, so there is still work to be done on the cost side. But increasingly, C&R leaders are pursuing transformation for growth. In a KPMG survey of C&R executives, respondents said the top reasons for transformations now are initiatives that enable growth: delivering better products and services, understanding customers better, and responding to market changes with greater agility.

Leading organizations are looking closely into three areas:

  • Value: Consumer products and retail companies are building upon foundations of historical customer and product data-"leaning forward" in their investments to anticipate and manage the impact of sustained inflation on purchase behavior.
  • Purpose: Culture and employee buy-in are crucial for a high-stakes business transformation. Transformations are more likely to succeed when jobs are redesigned to give employees a greater sense of purpose, which drives engagement and performance. 
  • Data and analytics: Companies that have built a robust technology and data foundation are able to implement transformations more effectively and deal with the new phenomenon of continuous, overlapping transformations. Democratizing data and analytical tools also helps employees succeed in their “transformed” roles.

Download our report to learn more about anticipated market changes and how they would shape consumer products and retail business transformations for years.

Dive into our thinking:

Transforming for growth in Consumer & Retail

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client story

A winning rebound for a leading fitness company

How KPMG helped a fitness leader regain its financial strength

This is not our first time seeing a very good start-up with a very good product hit a roadblock. They needed a more mature organizational structure. Our goal is to bring in as much experience as needed, and that’s the real strength of KPMG—we have much better depth in terms of skill sets than many companies do. Here, we were able to bring in three different elements of KPMG to help this company.

Pete Smidt

Managing Director, Deal Advisory & Strategy

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