The retail sector is the most vulnerable to disruption; structural changes expected – according to AlixPartners report.
- New research from AlixPartners indicates the retail industry is the most vulnerable to disruption among the ten industries studied.
- 38% of retail industry leaders admit to fears over losing their jobs.
- Roughly half of retail executives say companies can't keep pace with technological change and worry employee skills are rapidly becoming obsolete.
- The AlixPartners "Disrupt or Be Disrupted" study focused on six trends reshaping retail.
According to global consulting firm AlixPartners, global retail will be the most vulnerable to disruption in 2024. Now in its fifth year, AlixPartners' Disruptive Index surveyed 3,000 C-suite executives worldwide, collecting responses across ten industry sectors.
Over 50 percent of the respondents from the retail sector anticipated significant structural changes to their business model this year – the highest of all ten industries surveyed. This exposure to disruption is highlighted in the insecurity of retail business leaders, with a staggering 38 percent admitting to fears of losing their jobs as a direct consequence of industry disruption.
David Bassuk
Global Leader, Retail
Partner & Managing Director
According to the AlixPartners study, these fears also extended to their workforce. Over half of top retail executives revealed that their employees' skills are at risk of obsolescence and are not aligned with the changes currently impacting their businesses.
"Our latest findings underscore the critical need for retailers to address challenges posed by disruptive forces in the industry proactively," said David Bassuk, global leader of the retail practice at AlixPartners.
"As the retail landscape rapidly evolves, businesses must remain agile and innovative to stay competitive and resilient,"
Published at the World Retail Congress this month in Paris, AlixPartners' "Disrupt or Be Disrupted: Six trends reshaping retail" report explores critical trends, including:
- Discount disruptors: the next generation of discounters.
- Real-time retail: navigating the now economy.
- Brand consolidation: the rise of multi-brand platform models
- Circular retail: is profitability the bottom line?
- From retailer to media owner: harnessing value from digital channels.
- Social shopping and D2C innovation: keeping up with the influencers.
Matt Clark, EMEA Leader, Retail Partner & Managing Director
"The digital revolution, consumer behaviour change, geopolitical tensions, economic pressures, and the lingering impact of the pandemic are transforming the retail landscape globally," said Matt Clark, the EMEA lead in AlixPartners's retail practice.
"Our research not only analyses the biggest challenges facing the industry but also highlights the greatest opportunities. For industry innovators and those willing to adapt and learn, the future of retail looks promising."
According to the report, while 70 percent of retail executives hold growth expectations for the overall industry in the next 12 months, nearly half (49 percent) report that technological change is happening at a rate their company cannot keep up with. Meanwhile, more than half say existing employees' skills are rapidly becoming obsolete, and that new employees entering the workforce do not have the skills to succeed.
"Coinciding with World Retail Congress 2024, our hope is that this report will spark discussions about the changing face of retail," said Ian McGarrigle, Chairman of World Retail Congress.
"Our goal is to facilitate meaningful conversations that drive innovation and shape the future of our industry's landscape."
