Here today, gone tomorrow?

Six trends impacting the fate of retailers


Despite record-high inflation, tightening labor markets and ongoing uncertainty, retailers cannot afford to hold back on innovation. They must continue to transform, invest, and innovate to remain competitive and create their future or risk falling behind.

Current challenges and opportunities for retailers range from pricing to labor, logistics, technology, and sustainability. To keep moving forward, retailers will need to make strategic and operational adjustments as the economic environment unfolds.

After surveying 100 retail executives on the state of the industry, we’ve identified six key trends that we believe will continue to drive the industry forward.1
 

1. Going back to the future

While the pandemic accelerated online retail to reach new heights, shoppers are returning to stores with great expectations.

Reasons for foot traffic increase in brick and mortar

2. Enabling omnichannel with BOPIS

Retailers are considering restructuring opportunities within physical locations to enable better fulfillment and create a true omnichannel experiences.

BOPIS forecast growth, by number of stores

3. Overcoming supply chain struggles

As supply chain challenges persist, retailers are turning to new, short-to-medium term solutions to overcome bottlenecks.

Major supply chain/logistics challenges for companies
for all executives

Major supply chain/logistics challenges
for companies for supply chain executives

4. Managing in a tight labor market

In response to tight labor markets, retailers are increasing pay and adding benefits and incentives while turning to automation and new technologies.

Initiatives to overcome labor challenges

5. Experimenting with metaverse opportunities

The metaverse represents new worlds of possibilities for retailers, allowing them to experiment, innovate and discover new growth potential.

Ways to leverage metaverse for retail companies

6. ESG: Embracing progress with purpose

As sustainability increases in importance, retailers are embedding ESG principles across the enterprise to achieve progress with purpose.

Ways companies are addressing ESG challenges

  

Here today, gone tomorrow?
Read the full report
Retail trends analysis
Full analysis of KPMG survey results
 

  1KPMG 2022 Retail Trends Analysis. (Survey fielded May 2022). Slide 16. All additional slide references in this report are from this source unless otherwise noted).

Contact us

Matt Kramer

Matt Kramer

National Sector Leader, Consumer & Retail, KPMG LLP

+1 614-241-4666
Scott Rankin

Scott Rankin

Principal and the US Strategy Service Line Leader, KPMG LLP

+1 617-988-1474
Julia Wilson

Julia Wilson

ESG Strategy Leader, KPMG US

+1 404-222-3511
Kenneth Kim

Kenneth Kim

Senior Economist, KPMG US

+1 212-954-6144
Sunder Ramakrishnan

Sunder Ramakrishnan

Advisory Managing Director, KPMG US

+1 212-739-6328
Sam Ganga

Sam Ganga

National Consulting Leader, Consumer &Retail, KPMG LLP

+1 312-961-7289
Ken Spigarelli

Ken Spigarelli

Advisory Managing Director/Supply Chain Consumer and Retail Lead, KPMG US

+1 734-231-1311
Robin Rasmussen

Robin Rasmussen

Principal, Human Capital Advisory , KPMG US

+1 415-608-1139