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Retail’s Responsible Reset | Accenture

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Retail’s Responsible Reset | Accenture

  1. 1. Retail’s Responsible Reset The six imperatives for growth
  2. 2. Contents Industry backdrop The six imperatives for growth 01. Reset consumer offerings 02. Reset channels 03. Reset fulfillment 04. Reset sourcing 05. Reset talent 06. Reset data Copyright © 2022 Accenture. All rights reserved. 2 Next steps Retail’s Responsible Reset 03 16 06 19 07 21 10 25 13
  3. 3. Copyright © 2022 Accenture. All rights reserved. Industry backdrop With the retail industry in perpetual flux, there’s no rest for the weary. Traditional retailers are vulnerable to disruptors from within and to a barrage of external forces beyond their control. The last thing they should do is hunker down and wait for things to settle. Because they never will. 3 Retail’s Responsible Reset | Industry backdrop
  4. 4. 4 Traditional retailers are vulnerable to disruptors from within the industry as well as a barrage of external forces beyond their control, which are creating massive demand volatility and uncertainty. Retailers are scrambling to balance costs and preserve margins while assessing how to respond to a permanent state of unpredictability that touches everything they do. The challenge (and opportunity) for retailers is to strengthen digital capabilities while fully harnessing the physical model they’ve built over decades. This is a profound transformation that requires a reset of every aspect of the business—people, process and technology. All while navigating environmental, social, and governance (ESG) implications. The retail industry is in perpetual flux Retail’s Responsible Reset | Industry backdrop
  5. 5. Copyright © 2022 Accenture. All rights reserved. 5 Retail’s Responsible Reset | Industry backdrop Let retail’s responsible reset begin It’s time for retailers to demonstrate the resilience and creativity that have been hallmarks of the retail industry for years. Challenges abound, but so do opportunities to create a new future of retail growth.
  6. 6. The six imperatives for growth Copyright © 2022 Accenture. All rights reserved. 6 Retail’s Responsible Reset | The six imperatives for growth Reset consumer offerings Connect offerings to a retailer’s purpose in consumers’ lives in ways that are authentic to the brand and create new revenue streams. Reset channels Take a portfolio approach across digital and physical channels to balance engaging consumers with the cost of operations. Reset fulfillment Activate local fulfillment and make it profitable by using retailers’ assets and/or those available through partnerships. Reset sourcing Improve resiliency by rethinking the supply base—focusing on the geopolitical climate, surety of supply, sustainability, and transparency. Reset talent Develop a compelling value proposition to retain and attract talent while supporting a digitally savvy, data fluent, and diverse workforce and culture. Reset data Become a truly data-driven retail organization where employees are more than just data- aware—they become data-dependent. 01 02 03 04 05 06
  7. 7. 01 Connect offerings to their purpose in consumers’ lives in ways that are authentic to the brand and create new revenue streams. Copyright © 2022 Accenture. All rights reserved. 7 Retail’s Responsible Reset
  8. 8. Copyright © 2022 Accenture. All rights reserved. 8 Purpose and value. A retailer’s brand purpose and the value it has in enhancing consumers’ lives, should be at the heart of the offering, whether it’s a product or service. With consumers making (sometimes paradoxical) choices and balancing cost versus value, retailers need to be clear about their differentiation and value. Essentials for resetting consumer offerings Modern merchandising. Retail merchants need to look beyond the placement of their own or third party products. They should consider developing assortment and private label strategies with a highly local lens and price sensitivity, by combining their deep category expertise with insights from AI and machine learning. Retail’s Responsible Reset | 01. Reset Consumer Offerings
  9. 9. 9 New and relevant offerings. With shifting consumer expectations and the blurring of physical and digital channels, retailers need to consider expanding their portfolio of offerings. There may be opportunities to sell adjacent products or services, create new revenue streams such as rental or repair, or explore new channels such as the metaverse. Retail’s Responsible Reset | 01. Reset Consumer Offerings
  10. 10. 02 Take a portfolio approach across digital and physical channels to balance engaging consumers with the cost of operations. Copyright © 2022 Accenture. All rights reserved. 10 Retail’s Responsible Reset
  11. 11. Copyright © 2022 Accenture. All rights reserved. Essentials for resetting channels 11 Customer experience. Retailers need to aim to provide hyper-personalized online and offline customer experiences that make sense for the brand, made possible by rich data analytics and a strong cloud-based foundation. Brand strategy. Retailers need to draw on creative storytelling that puts the brand front-and-center and is central to every touchpoint and experience across every channel—from the flagship store to the product page on a website or the metaverse. Retail’s Responsible Reset | 02. Reset Channels
  12. 12. Copyright © 2022 Accenture. All rights reserved. 12 Retail’s Responsible Reset | 02. Reset Channels The value of the store. As well as the number, role and format of stores across the store network, retailers need to consider the purpose, design and operating model of individual stores to serve the needs of their local communities. Test, learn and scale. By trialing solutions and strategies through experimentation— whether a new store concept, emerging market, bold brand extension or the metaverse—retailers can make informed decisions on the solutions to scale.
  13. 13. 03 Activate local fulfillment and make it profitable by using your assets and/or those available through partnerships. Copyright © 2022 Accenture. All rights reserved. 13 Retail’s Responsible Reset
  14. 14. Copyright © 2022 Accenture. All rights reserved. 14 Predictive analytics. Retailers need to be using data and AI to predict how best to serve the most profitable, highest-value customers—and keep them coming back. And leverage analytics, such as demand forecasting, order affinity and inventory placement, to optimize operations. Essentials for resetting fulfillment Agile network design. Retailers need an agile design approach to reset their networks faster. This is about specificity—network design based on shape-of-chain analysis across the store estate, and making the right decisions around product flows and operations. Retail’s Responsible Reset | 03. Reset Fulfillment
  15. 15. Copyright © 2022 Accenture. All rights reserved. 15 Home delivery. The last mile can make or break customer relationships, and transparency is key—retailers need to include real-time order tracking and be open and honest when problems arise. Last mile delivery must be continually optimized to ensure profitability. Strength in numbers. The new fulfillment landscape allows retailers to work with partners, including those in transportation and last mile delivery. In making partnership decisions, retailers need to pursue those that help lower the carbon footprint of last-mile. Retail’s Responsible Reset | 03. Reset Fulfillment
  16. 16. 04 Improve resiliency by rethinking the supply base—focusing on the geopolitical climate, surety of supply, sustainability and transparency. Copyright © 2022 Accenture. All rights reserved. 16
  17. 17. Copyright © 2022 Accenture. All rights reserved. 17 Scenario modelling. Retailers need to take a predictive approach to managing sourcing risk from external influences beyond their control. By defining and running scenario simulations, decision-makers can anticipate, assess and mitigate high-risk situations. Essentials for resetting sourcing Surety of supply. Retailers need to reassess and reprioritize the risks at each node of the supply network, with visibility beyond Tier 1 and Tier 2 suppliers. Rethinking the mix of nearshore and offshore suppliers and exploring local sourcing models is also key. Retail’s Responsible Reset | 04. Reset Sourcing
  18. 18. Copyright © 2022 Accenture. All rights reserved. 18 Profitable sustainability. Contrary to popular belief, sustainability can be achieved while reducing cost. Retailers need to embed responsible ESG practices in their sourcing decisions, such as transitioning to sustainable materials and applying I&D practices. Value from transparency. More and more, consumers expect and value transparency around retailers’ sourcing practices. Retailers need to make sourcing “a glass pipeline,” creating a huge opportunity to engage consumers with authentic storytelling that aligns to their values. Retail’s Responsible Reset | 04. Reset Sourcing
  19. 19. 05 Copyright © 2022 Accenture. All rights reserved. 19 Develop a compelling value proposition to retain and attract talent while supporting a digitally savvy, data fluent and diverse workforce and culture. Retail’s Responsible Reset
  20. 20. Copyright © 2022 Accenture. All rights reserved. 20 Workforce and culture. With a highly challenging talent landscape, retailers need to foster a purposeful and omni-connected culture to attract and retain talent—where everyone feels they are seen and heard, and have the chance to advance and thrive. Essentials for resetting talent Beyond flexibility. While many frontline retail workers may not have a choice in work location, retailers need to explore other areas of flexibility—such as what work they do, when and how—to provide more autonomy in their employees’ experiences. New roles and new skills. With new retail roles redefined around digital technology, automation, seamless online and offline shopping experiences, and data-driven decision making—retailers need to ensure employees have the right tools and skills to thrive. Retail’s Responsible Reset | 05. Reset Talent
  21. 21. 06 Become a data-driven retail organization where employees move from being 'data-aware’ to becoming ‘data-dependent’. Copyright © 2022 Accenture. All rights reserved. 21 Retail’s Responsible Reset
  22. 22. Copyright © 2022 Accenture. All rights reserved. 22 Data dependent. To be data dependent, retailers need the organizational muscle—systems, advanced digital technologies, capabilities, workflows, governance and more—to consistently act on data insights. Essentials for resetting data Right data, right place. To act on data insights, retailers need to enable data movement by creating an architecture for data to move from application to application quickly and seamlessly. Power from cloud. Retailers need cloud technology to manage data and maximize its strategic value. Cloud platforms offer scale and agility, and access to the most advanced analytics tools in the market. Retail’s Responsible Reset | 06. Reset Data
  23. 23. New growth from insights. Retailers can use rich data insights to create new revenue streams, such as new categories or markets, products, stores, or businesses. Media services is a promising new business, for example. Copyright © 2022 Accenture. All rights reserved. 23 Retail’s Responsible Reset | 06. Reset Data
  24. 24. 24 Intelligent insights. Given consumers’ price sensitivity, it’s essential for retailers to prioritize the necessary data to have an accurate picture of price elasticity and how price hikes will impact consumer purchasing and loyalty. Data-driven operating model. Data value often comes from employees who leverage data to enhance their roles—but for this, retailers need to ensure data transparency to foster trust in the data. Activate ESG. In the near future, retailers will need to include ESG data—such as water usage, carbon footprint and fair labor practices—in company reporting, so need to have the data structures in place to do this. Retail’s Responsible Reset | 06. Reset Data
  25. 25. Copyright © 2022 Accenture. All rights reserved. 26 Next Steps Responsibly reset and get ready for constant change Retailers that boldly step into change—and execute it confidently—will be in the best position to stand out. For shareholders. For consumers. For employees. For partners. For the planet. And for the future. This is retail’s moment of truth. The focus? Reset the business responsibly and maintain its agility to continually reset to grow, in a changing and challenging world. Retail’s Responsible Reset | Next Steps
  26. 26. About Accenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Technology and Operations services and Accenture Song — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 721,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com 27 Jill Standish Global Retail Industry Lead jill.standish@accenture.com Contact us Retail’s Responsible Reset

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