Insight

To beat disruption, use partnerships, M&A and investments

The winners in retail and consumer will be companies that use deals and partnerships to build capabilities.

Through mergers, alliances, partnerships and investments, consumer and retail incumbents are fortifying themselves against digital disruption: finding the expertise they need in data and analytics to gain customer attention and build loyalty, the well-springs of creative ingenuity to launch breakthrough products and services, and access to online sales platforms to connect with more customers. Many find themselves stronger and more competitive as a result.

Walmart’s response to digital disruption has been a game-changer for the company. After years of in-house efforts to build up its eCommerce capabilities, the global retailing giant turned to M&A in order to more rapidly advance its strategic eCommerce priorities. As a result of several strategic acquisitions, including Jet in 2016, the company is now number three among America’s biggest online retailers.

Walmart is not alone.

New KPMG report

KPMG’s report Consumer & Retail: beating disruption through partnerships, M&A and investments explores three key transaction strategies used by incumbents:

  1. Strategic partnerships and alliances
  2. Strategic M&A, and
  3. Venture investing

Each of these is examined in turn, including the pitfalls and challenges, opportunities and best practices for realizing strategic and financial value. Read the full report

To beat disruption, use partnerships, M&A and investments
Winning companies in retail and consumer industries use deals and partnerships to build capabilities

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