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: Shop NEXT 2020
31.03.2020   #online trading #brick and mortar retail

Shop NEXT 2020

Next shopping experience

Due to the retail industry in Southeast Asia is developing rapidly and the retail industry value has exceeded 100 billion dollars. Over 250 exhibitors and 10,000 visitors from 30 countries or regions are expected to participate in Shop Next ...

Thumbnail-Photo: Contactless? Cross-channel? Consumer-friendly?...
11.05.2020   #mobile payment #payment systems

Contactless? Cross-channel? Consumer-friendly?

Things to look for in a payment solution

Whether it’s e-commerce, point of sale, or mobile payment: we have to pay for our purchase. But what do customers want and expect from a payment solution? How can retailers meet these expectations and are self-checkouts really a faster option ...

Thumbnail-Photo: Electronic shelf labels: photo store introduces new technology...
09.05.2020   #electronic shelf labels (ESL) #electric displays

Electronic shelf labels: photo store introduces new technology

Cooperation between Photografica and Delfi Technologies

Photografica is a professional photography store in the heart of Copenhagen. Here, personal counseling and service play a crucial role. To the benefit of both employees and customers, the store has installed electronic price tags.With a central ...

Thumbnail-Photo: Cutting through the tax jungle
25.02.2020   #online trading #e-commerce

Cutting through the tax jungle

Startup helps online retailers to be fully compliant with European VAT regulations

Anyone who sells goods online is obliged to pay value-added tax (VAT). The amount depends on the respective national regulations. But what happens if you have cross-border exports and transactions? How much VAT do sellers have to pay in this case ...

Thumbnail-Photo: The cash register capable of everything
18.02.2020   #customer satisfaction #epos systems

The cash register capable of everything

Flexible use from manned checkout to self-checkout point

Customers walking through the store with their own cash register on hand? This versatility of shop technology and shop fittings corresponds to the change in brick and mortar retail. MAGO wants to help retailers to meet this challenge with ...

Thumbnail-Photo: Digitalization in the german wholesale industry...
29.05.2020   #digitization #self-checkout systems

Digitalization in the german wholesale industry

METRO Companion App

Retailers have embraced digitalization to enhance the customer experience for many years. Examples of the growing digital transformation market include self-checkouts, omnichannel marketing, and electronic shelf labels. Customer apps are also ...

Thumbnail-Photo: Toshiba demonstrates the future of shopping at EuroShop 2020...
13.02.2020   #self-checkout systems #Trade fair special EuroShop 2020

Toshiba demonstrates the future of shopping at EuroShop 2020

Toshiba spotlights innovations enabling retailers to create “moments that inspire”

Toshiba Global Commerce Solutions offers EuroShop 2020 attendees a look into the future via its ‘Frictionless Store’, Feb. 16-20, hall 6 booth C41 in Düsseldorf, Germany. Toshiba’s innovative solutions enable retailers to ...

Thumbnail-Photo: Augmented reality in online shopping
09.06.2020   #online trading #e-commerce

Augmented reality in online shopping

Study finds that augmented reality reduces the number of returns

A recent survey found that online shoppers return 70 percent of the clothing they order, more than any other category of purchase. This has an indirect but real impact on the environment.Online shoppers tend to order multiple sizes and colors, with ...

Thumbnail-Photo: Automated delivery services sprang up during China’s Covid-19 lockdown...
03.06.2020   #coronavirus #delivery

Automated delivery services sprang up during China’s Covid-19 lockdown

Retail technologies at Smart Retail Expo (SRE 2020)

In response to the Covid-19 outbreak, China’s retail giants JD.com and Meituan both deployed their smart deliver robots/vehicles in heavily locked down cities, such as Wuhan and Beijing. Insiders believe automated delivery technology will be ...

Thumbnail-Photo: Connected Retail Experiences and StartmeupHK Festival 2020 goes virtual...
03.06.2020   #e-commerce #multichannel commerce

Connected Retail Experiences and StartmeupHK Festival 2020 goes virtual

Transformation from an in-person event to a fully virtual experience

The StartmeupHK Festival 2020 is to be transformed from an inperson event to a fully virtual experience. Connected Retail Experiences will take place on 7th July 2020. Inves tHK’s decision to bring this annual event into the ever more rapidly ...

Supplier

Poindus HQ - Taiwan
Poindus HQ - Taiwan
5F., No.59, Ln. 77, Xing-Ai Rd.,Neihu Dist.
Taipei City 114
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Adasys GmbH – a Poindus Company
Adasys GmbH – a Poindus Company
Max-Planck-Straße 10
70806 Kornwestheim
Nagarro Allgeier ES GmbH
Nagarro Allgeier ES GmbH
Westerbachstr. 32
61476 Kronberg im Taunus
POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen
GLORY Global Solutions (Germany) GmbH
GLORY Global Solutions (Germany) GmbH
Thomas-Edison-Platz 1
63263 Neu-Isenburg
MAGO S.A.
RUSIEC ALEJA KATOWICKA 119/121
05-830 Nadarzyn
VR Payment GmbH
VR Payment GmbH
Saonestraße 3a
60528 Frankfurt am Main
ROQQIO Commerce Solutions GmbH
ROQQIO Commerce Solutions GmbH
Harburger Schloßstraße 28
21079 Hamburg