Retailing is now etailing. Bricks and mortar has been replaced with clicks and mortar. Couple this with the modern consumer who demands goods are customised to their needs and available immediately, and it is clear that retail has become one of the most challenging yet dynamic industries globally. Future success will be defined by those retailers who provide a seamless shopping experience that is buoyed by a tightly knit supply chain and shopping experience.
The rapid evolution of the industry has seen a number of archetypal retail brands close their retail doors in the past few years. Many struggled to grapple with high labour costs and store rents secured pre GFC, and many others failed to embrace technology to enhance their business.
Some of the most common issues facing retailers include:
- the profitability of traditional bricks and mortar stores and the advent of ecommerce
- ongoing store and divisional/brand profitability
- maintaining or enhancing competitiveness in an increasingly global industry
- meeting/keeping abreast of increasingly high consumer expectations for customisation and immediate access to goods.
Questions that should be asked
Retailers should be asking themselves:
- How can I prepare my business for the expected rise of overseas competition?
- How do I determine if my retail footprint is appropriate given changing market dynamics?
- How do I improve the profitability of my business, when I’m facing shrinking margins and increased competition?
- How can I make the transition from bricks to clicks?
- How do I balance the investment demands of the shop front vs the back office/supply chain?
- How can I protect my business from the increasing cyber threats?
PPB Advisory’s retail team has built a strong track record having led a range of complex and sensitive engagements with many prominent retail chains, wholesalers and manufacturers.
Understanding key retail and manufacturing issues – as advisors to many retail and manufacturing businesses, as well as their financiers, we have worked to deliver successful outcomes in a multitude of different scenarios. Each of these engagements has helped us to build on our strong understanding of the various business models and operational and financial issues that influence performance in this sector.
Highly experienced team with complementary skills – our team offers specialist knowledge of the retail and manufacturing industry to ensure we can provide robust, high quality and informed advice to clients.
Working collaboratively with stakeholders – we recognise the importance of stakeholder management and have a very strong track record of working with high-profile boards and diverse financiers to deliver successful outcomes in sensitive environments.