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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 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 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 Differentiating with Last-Mile Delivery COVID-19 is only accelerating demand for last-mile delivery. Once a “nice to have” strategy to capture a piece of the $1.99 BN market in 2018 – projected to grow 16.7% through 2026 (pre-pandemic), this is now a “must have” component of most business plans. Learn more about the three archetypes of companies engaging in a range of delivery models: Generalists, Specialists, and Underdogs. -
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 morePerspective Cyberattacks: The Increasing Risk For Retail Cyberattacks are an unfortunate reality and major source of damage in today’s digitally focused business environment. Successful cyberattacks have the potential to cripple companies through significant legal fines, reputational repercussions, and overall financial strain. The financial impact of attacks on retailers have reached hundreds of millions in the past. 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 morePerspective Feeding A Nation Stuck At Home The onset of the COVID-19 virus puts food retailing in a rare position. They are an essential business, which may be a silver lining for an industry that has been struggling. -
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. -
Read morePerspective Responding To COVID-19: Six Things Retailers Should Do To Keep Calm And Carry On As the number of cases of the Coronavirus (COVID-19) increases, the focus of companies must be on limiting the direct impact on employees and customers whilst supporting efforts to limit the spread of the virus. The healthcare sector, airlines, travel firms, and retailers are at the coalface of the immediate impact and face a huge challenge over the coming weeks to respond effectively to the emerging crisis. -
Read moreReport Retail & Consumer Journal Volume 7 Welcome to the 7th edition of the Oliver Wyman Retail & Consumer Journal . While it is a truism that change is the only constant in life, what has been astonishing over these past seven years is the magnitude and scale of the change. -
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Read morePerspective Retailers Taking Alternative Insurance Routes Hurricanes. Earthquakes. Wildfires. Record catastrophe losses in 2017 and 2018 have turned the tide of property insurance pricing, which had been trending downwards for several consecutive quarters. -
Read morePerspective Retailers and Restaurants Shouldn’t Rush to Enter the Budding CBD Market Insurance Routes From edibles to cosmetics and skin care, the market for products containing cannabidiol (CBD) is surging. And after long being banned by the federal government, regulators are now rethinking their approach to CBD- and hemp-derived products. But the regulatory outlook is far from clear — in fact, significant risks remain, and retailers must do their homework before restocking their shelves with CBD products. -
Read morePerspective Tackling the Retail and Restaurant Industry’s Technology Conundrum Despite their myriad advantages, new technologies, especially connected ones, could become major liabilities if infiltrated by cyber-attackers. But notwithstanding the potentially ruinous risks, only 28% of industry respondents to the Marsh and Microsoft survey said they evaluate the risks of new technologies both prior to and after adoption, while only 5% evaluate risks during all possible stages of the lifecycle. And more worryingly, 8% of industry respondents don’t carry out any evaluation. While adopting the latest technologies can lead to operational benefits, including greater efficiency and lower costs, businesses that do not take comprehensive measures to understand, measure, and address the risks associated with these new technologies could be compounding their cyber risk. And the evolving nature of both cyber risk and technology means that continuous assessment is essential to determine whether and how these technologies are expanding a company’s risk profile.
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