Coresight Research recently conducted a survey of over 400 key decision-makers at global retailers in North America, Europe, Australia, and New Zealand to gain insights into how retailers are using digital technologies in reaction to the impact current economic conditions are having on the retail sector.
In particular, the survey focused on how digital technologies such as financial planning software, workforce management tools, and artificial intelligence (AI) and machine learning (ML) applications can address the pressing issues of cost control and margin optimization. The report, Navigating Digital Transformation: Optimizing Retail Operations Amid Margin Pressure, examines how macroeconomic factors are creating challenges for retailers and why the current economic landscape requires digital transformation, including the impact of job markets and inflation. The report also addresses how these issues and others, such as heightened shopper expectations, are making cost and margin management increasingly complex.
Some of the top areas of investment identified in the survey include financial planning software, financial management/accounting software, AI/ML (including generative AI), data analytics software, and more. Interestingly, the survey found that, of all advanced technologies, retailers are increasingly recognizing the value of AI/ML technologies, including GenAI (generative AI), with 27% of respondents identifying it as the advanced Technology that is best suited to help them proactively identify unexpected costs.
The survey includes proprietary survey data on costs that retail businesses found most difficult to control and the unexpected costs they encountered over the past 12 months, as well as data on the challenges retail companies faced when making their operations adaptive to a fast-changing environment and when managing staff in times of fluctuating demand. Additionally, survey data on the technology solutions retail companies are using to manage their costs and margins and the effectiveness of those solutions is also included.
With the retail sector experiencing ongoing challenges due to economic conditions, the insights from this survey provide valuable information for retailers to improve their operations and remain competitive in the market.
Historically, the retail sector has faced various challenges, from economic downturns and changing consumer behavior to technological advancements. In recent years, the rise of e-commerce and digital technologies has transformed the retail landscape, leading to increased competition and the need for retailers to adapt to changing market dynamics. This survey reflects the ongoing effort of retailers to leverage digital solutions to address the challenges they face, highlighting the importance of innovation in optimizing retail operations.
In conclusion, the survey conducted by Coresight Research sheds light on the critical role of digital technologies in helping retailers navigate the current economic landscape. By investing in advanced technologies such as AI and ML, retailers can better manage costs and margins, ultimately improving their competitiveness and ability to meet the evolving needs of consumers. As the retail sector continues to evolve, the insights from this survey will undoubtedly play a crucial role in shaping the future of retail operations.
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