Digitisation of behaviour
Customer expectations set online, whatever the channel the sale closes in.
Sector 02 / Retail
Physical and online channels, and the economics of both together.
Strategy and value creation services across the sector, from large national chains through to boutique and eCommerce-driven models.
Sector overview
One sector, and a very wide range of models.
The retail sector comprises a broad range of market segments, from large national grocery chains, through to small boutiques and eCommerce-driven business models.
Regardless of model, the sector is increasingly impacted by the digitisation of customer behaviour and expectations, a shift accelerated by the Covid pandemic and restrictions on personal movement. Digitisation is also enabling greater personalisation, with the retailers best able to use their data well-positioned to offer customised recommendations, loyalty programmes and tailored experiences.
The Australian market is currently experiencing higher rates of insolvency and consolidation, as households find disposable income squeezed by a combination of higher rates, rising taxes and inflation. That creates opportunities for larger players to acquire smaller competitors and expand share and capability.
Market forces
Four shifts setting the agenda.
Each of these changes the shape of the cost base as much as the top line, which is why they tend to arrive on the board agenda together.
Personalisation from data
Customised recommendations, loyalty programmes and tailored experiences, for those able to use the data they already hold.
Sustainability and sourcing
Customers increasingly aware of ethical consumption, with a resulting requirement for transparency on sourcing and ESG policy.
Supply chain centralisation
A long-term trend towards large DCs, promoting availability and international sourcing of high-margin own-brand product.
Selected client examples
Three retail engagements.
Named clients are withheld. Each of these ran with a team of two to four, working alongside the retailer’s own people.
Corporate strategy
Leading national convenience chain
Corporate strategy development.
- Strong alignment around a clear medium-term growth strategy
- Defined customer, channel, pricing and merchandising strategy
- Supported a successful sale of the business to a large international corporation
Execution
National supermarket retailer
Strategy execution support and range review.
- Conducted range reviews across 30+ product categories
- Updated store layout and customer experience
- Supported the updated business transformation programme
Customer research
National discount retail chain
Customer research and strategy refresh.
- Deep customer insight, combining standard research techniques with POS data
- Defined a revised medium-term strategy to improve customer centricity
Starting a conversation
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A complimentary 30 minute discussion. We review your current strategy process and identify near-term execution opportunities.