News • 24.07.2018

Mergers and acquisitions expected to drive growth

Retailers look to new technologies and improving customer experience

Fisch frisst Fisch; Copyright: panthermedia.net/Dietrich...
What are the top growth drivers for retailers?
Source: panthermedia.net/Dietrich

The overwhelming majority of U.S. chief executive officers (83 percent) in the consumer and retail (C&R) industry say they are very confident about the growth prospects of their companies over the next three years – far more optimistic than their global counterparts (54 percent). U.S. executives also say they expect mergers and acquisitions (M&A) and third-party strategic alliances to drive growth, on-board new digital technologies and innovations and to improve the customer experience, according to the KPMG CEO Outlook 2018 survey.

Nearly all of the U.S. C&R CEOs (98 percent) see technological disruption as an opportunity rather than a threat, and said they are keeping up with innovation (92 percent). However, they do admit that various technology risks, including cyber, may hinder top-line and long-term growth.

Growth through M&A and third-party strategic alliance

When asked about the top growth drivers over the next three years, U.S C&R CEOs most frequently cited M&A (38 percent) followed by strategic alliances (23 percent). M&A is expected to transform retailers' business models faster than organic growth, reduce costs, increase market share and on-board new technologies.

"Although U.S. CEOs are bullish on the business prospects of their companies, the percentage increase in growth over the next three years may still be moderate," said Mark Larson, national leader of KPMG's Consumer & Retail practice. "Retailers that acquire the right technologies, either through M&A or third-party alliances, and successfully personalize the shopping experience for their customers, may see the highest percentage increases in growth."

Cybersecurity and emerging/disruptive technologies are top risks

Despite their bullishness on growth, U.S. C&R CEOs most frequently identified cyber security and emerging/disruptive technology as the greatest threats to their organizations' growth (25percent each), followed by operational risk (21 percent). In fact, 90 percent of U.S. C&R CEOs said that protecting customer data is one of the most important responsibilities for their organizations in order to grow.

"Risks such as cyber security, managing customer data and adoption of new technology can significantly impact retailers' top-line and long-term growth," said Duleep Rodrigo, risk consulting industry leader, consumer & retail, KPMG LLP. "Since the various risks in retail are heavily interconnected, rapidly evolving, and impact each retailer in a unique way, companies need to be creative in taking a balanced approach in managing risk and maintaining consumer trust, particularly as it relates to technology."

Leverage technology and digital transformation to connect with customers

Though there are risks associated with emerging technologies, 94 percent of U.S. C&R CEOs expect to see a significant ROI from digital transformation and AI within the next five years.  

To date, the majority of the U.S. C&R CEOs (88 percent) said that technological investments made to personalize the customer experience have delivered the growth benefits expected, but there is more that can be done.

"Personalizing the shopping experience by leveraging technology, customer data and insights is key to delivering an outstanding, individualized experience for consumers," said Julio Hernandez, leader of KPMG's Global Customer Center of Excellence and U.S. Customer Advisory Practice. "Retailers also have an opportunity to engage in conversations with consumers to learn how to better serve them. In others words, asking consumers directly how they would like to be engaged."

Source: KPMG LLP

related articles:

popular articles:

Thumbnail-Photo: The future of retail: AI is changing everything...
08.07.2019   #digital marketing #visual merchandising

The future of retail: AI is changing everything

AI-enabled systems help retailers understand their customers

For retailers, winning is still all about delighting the customer. The trick is to move fast enough and to be as nimble as possible to satisfy the customer not only today, but in the future. ...

Thumbnail-Photo: Well cooled shopping entertainment, please!
15.07.2019   #refrigeration cabinets #refrigerated counters

Well cooled shopping entertainment, please!

What about modern refrigeration technology?

Pierluigi Schiesaro and Gian Paolo Di Marco from Arneg, a company focusing on food service equipments, talk about refrigeration systems as "shopping entertainment".They also tell us what sustainable refrigeration could look like and why ...

Thumbnail-Photo: New year brings new regulations
13.09.2019   #data management #receipt printer

New year brings new regulations

What are the big changes for German point of sales systems come 2020?

Big changes are coming to Germany’s point of sale systems starting January 1, 2020. Two terms that are tossed around in this connection are "Belegausgabepflicht" (Receipt Provision Ordinance) and ...

Thumbnail-Photo: The iXtenso editors tested self-scanning ......
30.09.2019   #mobile payment #self-checkout systems

The iXtenso editors tested self-scanning ...

... with an app of the Hobbymarkt Knauber in Bonn, Germany

Snabble has developed a payment app that allows customers to scan their purchases in retail stores and pay online. I wondered: How does it work?The app is in use in the Bonn DIY and hobby market Knauber, among other places. Let’s make a move ...

Thumbnail-Photo: 45th anniversary of the barcode in retail
01.07.2019   #barcode scanner #qr code

45th anniversary of the barcode in retail

GS1 US celebrates the barcode’s relevance as the backbone of commerce

GS1 US®, the information standards organization best known as the administrator of UPC barcodes, this week celebrates 45 years since the debut and first scan of the iconic barcode. On June 26, 1974, a pack of Wrigley's chewing gum carrying a ...

Thumbnail-Photo: Retail analytics: Breaking down data silos and improving operational...
29.07.2019   #data management #data analysis

Retail analytics: Breaking down data silos and improving operational efficiency

How comprehensive data usage led to higher revenue at Heine

“As a business with heritage in mail order, we used to have access to detailed reports about product performance in our catalogues. Once our digital presence grew, we had very limited information available that combined the KPIs for both our ...

Thumbnail-Photo: Mobile payments at the supermarket checkout
05.08.2019   #mobile payment #smartphone

Mobile payments at the supermarket checkout

An early adopter’s experience of mobile payments

Or: "What’s that you’re doing with your watch?“I still remember the first time I used mobile payment technology and paid for items with my smartphone at a supermarket checkout: It was October 17, 2018, exactly seven days after ...

Thumbnail-Photo: When customers become cashiers
01.10.2019   #epos systems #mobile payment

When customers become cashiers

Treading a fine line between traditional and visionary, between checkouts and codes

For years, we have done this in online stores: we fill our shopping cart, click to pay and are excited about our purchase. Thanks to the snabble app - now available at the Knauber Hobbymarkt in Bonn and at IKEA in Frankfurt – consumers can ...

Thumbnail-Photo: Tackling organized retail crime with video analytics...
26.06.2019   #video surveillance #digital video surveillance

Tackling organized retail crime with video analytics

Inpixon joins forces with National Anti-Organized Retail Crime Association

Inpixon, an indoor positioning and data analytics company, announced it is collaborating with the National Anti-Organized Retail Crime Association (NAORCA Worldwide) to combat retail crime by providing a free 90-day trial offer for IPA Video™ ...

Thumbnail-Photo: retail trends 3-2019: focus checkout zone
16.09.2019   #mobile payment #customer satisfaction

retail trends 3-2019: focus "checkout zone"

Shopfitting, technology, marketing: What does a checkout have to do nowadays?

Read our latest edition retail trends 3-2019 online as an e-paper. ...

Supplier

iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
Permaplay Media Solutions GmbH
Permaplay Media Solutions GmbH
Aschmattstr. 8
76532 Baden-Baden
Superdata GmbH
Superdata GmbH
Ruhrstr. 90
22761 Hamburg
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven