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A “Retail Reset” Could Be Coming in 2022, According to Deloitte

A “Retail Reset” Could Be Coming in 2022, According to Deloitte
Written by Publishing Team

Despite empty shelves, limited stocking hours, and record-high inflation, the future of retail is bright.

Retail industry leaders are preparing for a brilliant “retail reset” in 2022, which will change how companies meet the needs of consumers and employees, according to Deloitte’s 2022 Retail Industry Outlook released Friday.

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“Retailers face significant challenges that are likely to persist beyond the pandemic, but there are also unexpected opportunities that can help them prepare for future disruptions,” Rod Sides, vice president and US retail leader at Deloitte, said in the report. “Retailers must discover how to reset themselves – as employers, in meeting consumers’ needs, and by being better corporate citizens – to compete in the next era of retailing.”

The report, which is based on 50 interviews with top retail executives from companies with at least $1 billion in annual income, looks at how companies are changing their businesses to be in a stronger position in 2022. The report focused on three main areas: talent retention, and supply chain developments and digital investments.

When it comes to talent retention, 83% of retailers say they should invest heavily in recruitment and retention, especially given the high smoking cessation rates across the industry. 4.5 million Americans quit their jobs in November, with about 686,000 people quitting the retail trade. 70% of CEOs expect labor shortages, especially among hourly workers, to be their biggest barrier growth in 2022.

To combat the labor shortage, several retail executives said they plan to rely on automation and other technological developments to replace fewer employees in stores.

Leaders are also reassessing how they manage their supply chain capabilities. 2021 proved that heavy reliance on a single overseas region can be disastrous if factories close and shipping delays. In the event of a crisis, leaders now know they need the right technology to be able to track and manage their goods.

While supply chain automation and data tools are likely to be a top priority for retailers in 2022, 57% of executives said they have no plans yet to invest in robots and automated products to handle their materials.

In keeping with the general focus on technology, Deloitte data suggests that retailers will continue to try to marry them Digital and physical experiences. 70% of retailers plan to invest in digital marketing, while 67% focus primarily on e-commerce and online shopping. Only 25% plan to invest in digital security.

Notably, 64% of leaders expect retailers to focus on the digital goods space in the next five years. Many companies such as Nike, Authentic Brands Group, and Adidas have made the leap into the realm and world of virtual goods. This will likely be an area of ​​focus for the industry moving forward.

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Publishing Team