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As the retail industry goes through a period of dramatic disruption, organizations are reinventing themselves to meet evolving consumer needs and behavior. Marsh McLennan helps retailers achieve transformative change. By combining deep industry knowledge and state-of-the-art analytical techniques with a collaborative, hands-on approach we help organizations reduce risks, improve profitability and unlock new opportunities for growth.
Retail Perspectives
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Read MorePerspective Retail and the pursuit of a diverse and inclusive workplace It is no secret that the millennial and Z generations are having a significant and varied impact on the retail industry. -
Read MorePerspective Focus on the Future For the Retailer, there was no simple answer to the question — “What steps do I take on coronavirus to ensure the well-being of my people and keep the business operating?“ — Yet, retailers had to formulate a response. -
Read MorePerspective In A Downturn, Include Your Employees in Cost-Cutting Decisions Almost every business is reorganizing its operations in response to the economic slowdown caused by the Covid-19 pandemic. Often, companies take a top-down approach to resizing based on a limited set of data such as earnings forecasts and competitive benchmarking. But following this playbook usually results in “wrong sizing” and demoralized employees. Instead, leaders should redesign their operations based on data provided by their most valuable sources of proprietary insights — their employees. Democratizing the collection of data and recommendations allows leadership teams to gain a much clearer picture of activities and initiatives underway within their organization. It also offers a more detailed lens through which they can evaluate which activities are the most valuable to achieving strategic objectives and which ones can be automated or managed in a shared services environment — or ceased. When leaders take this bottom-up approach, we have found they not only cut costs significantly but also realize their goals more rapidly because managers and employees are motivated to help. Changes are then also more likely to stick -
Read MorePerspective Winning the Retail Battle in A World Without Mask Restrictions China retail market has entered a new era with decelerated overall growth, and the COVID-19 has hit it further harder. This turbulent situation is going to trigger / accelerate structural changes in channel dynamics and consumer shopping behaviour, and China market is now entering the “Post-COVID Normal”. -
Read MorePerspective The Return of Value Grocery retail has seen a large surge in sales from the COVID-19 pandemic and associated “lockdowns”, but this surge is likely to slowly recede. As the recession takes hold, grocers need to focus on how they can deliver value to their consumers to ensure they are best-positioned to successfully thrive in the coming months. -
Read MorePerspective Revitalizing Retail Online and Offline After COVID-19 The Retail and Consumer Goods Practice is interviewing members of the team from around the world to see how industry trends and current events are playing out in their respective geographic markets. To get Imke's perspective on e-commerce and digital trends in China, please read the recent discussion she had with Jim Bacos, Retail & Consumer Goods Senior Partner. -
Read MorePerspective The Generational Shift That Will Change Business Behaviors Companies integrating environmental and social commitments into their core business are positioning themselves for impending generational shifts -
Read MorePerspective Is The Surge In US Grocery Sales Here To Stay? It is no secret that the current COVID-19 pandemic has had far-reaching impacts on businesses, consumers, and society at large. While many sectors have been hit hard, others such as the United States grocery industry have experienced a surge in sales amid the crisis. For these essential retailers, the month of March was “like the lead-up to Thanksgiving or Christmas”. Bank of America reported that card spend on groceries was up 36 percent in March year-over-year. However, this has required a significant increase in costs, as grocers have needed to spend more on labor and transportation as well as stepped-up store hygiene measures and personal protective equipment in order to keep shelves stocked and shoppers and employees safe. Now the question on everyone’s mind is: how is the topline likely to develop from here on? For now, the gains in sales have been enough to cover the increased costs. But are these sales sustainable or will they disappear? Worse, is there a trough just around the corner that will offset the recent spike in sales as consumers begin to draw down their pantries? -
Read MorePerspective Beat The Cost Curve Our original intention with this article was to argue that transforming the cost base of retail and consumer goods companies had become an absolute imperative, that traditional approaches to cost transformation were failing, and that new and bold paradigms were required. COVID-19 has not changed our conclusions, but instead given them yet greater urgency. We argued for bold ambitions and a massive commitment to execution. The virus has forced just that. COVID-19 has driven companies to take measures that in “normal” times would have been unimaginably drastic. In many cases, boldness born of a lack of good alternatives, and a “we have to do it yesterday” attitude towards execution, has allowed for better business continuity than many or most of us could have hoped. Despite the pain of the recent weeks and months, there is much to be learnt. Companies should build upon this experience in framing their next cost transformation program. -
Read MoreReport COVID-19 Risks Outlook: A Preliminary Mapping and Its Implications Economic distress dominates companies’ top concerns, yet leaders must act now to address the knock-on effect of far-reaching environmental, societal, and technological risks -
Read MoreInfographic Cyberattacks: The increasing Risks for Retail As retailers increasingly shift to a digital environment — and particularly as COVID-19 accelerates online purchasing — it is more important than ever for retailers to invest adequately in cybersecurity safeguards. -
Read MorePerspective Investing in Your Employees: A Shift in Mindset Beyond Compensation for Retailers In the last two years, cities and states have made headlines by establishing a $15-per-hour minimum wage for businesses operating within their geographic limits and retailers announcing they will hike their min mum wage for hourly employees up to $15-per-hour over the coming months or year. Additionally, federal legislation has been introduced to raise the minimum wage from $7.25 to $15 an hour. According to HR Executive, this would likely reduce the financial stress of lower-paid workers. However, for retailers, the challenges i n today's labor market go f ar beyond increasing wages. Though present before this COVID-19 crisis, and likely increased now, there are five specific trends, now concerns, that can be seen. -
Read MorePerspective Recession is back on the table: Are you ready? As demand falls and supply chains are disrupted, we are witnessing a major economic downturn as a result of COVID-19 — with some economists claiming we are already in a global economic recession. Here’s one question every executive needs to start asking: Is my business ready? -
Read MoreReport Building National Resilience: Aligning mindsets, capabilities, and investment Explores the key issues for national and subnational governments, focusing on effective country-level risk management -
Read MoreReport What will the fourth industrial revolution mean for retail? What will the fourth industrial revolution mean for retail? It's being called the fourth Industrial Revolution - the blurring of boundaries between the physical, digital, and biological worlds - and it's fundamentally changing the size and shape of the workforce. Between the fusion of technological advances and the shift to meet the changing demands of customers, there's a noticeable impact around adding new types of jobs. The emergence of disruptive technologies such as e-commerce, robotics, artificial intelligence, and virtual reality have increased the demand for new skills, altered processes and operations, and new consumer lifestyles. -
Read MorePerspective How US Retailers Should Prepare To Weather The Pandemic The Centers for Disease Control and Prevention (CDC) has encouraged Americans to prepare for the prospect of “community spread” of the novel coronavirus that causes COVID-19 in the US. The virus should be of particular concern for retailers, who will find themselves on the “front lines,” facing a worried public every day. More than many other businesses, they play a major role in communities. Retailers provide the essential means for daily life (food, medicines, and household essentials) and are huge employers, with workforces depending on them to make a living. Retail stores are also locations where people congregate, providing opportunities for the virus to spread and giving the industry a special responsibility to the community in time of epidemic. These roles mean that retailers’ preparations are crucial for society and the economy.