What: despite gloomy predictions, opportunities to thrive remain.

Why it is important: willing to commit to the transformation journey is key.

If the health of the retail sector is judged by the number of Chapter 11 and liquidation announcements since 2019, it would appear the industry is facing an apocalypse. But the reality is far more nuanced and complex.

While the bar has been raised since the onset of the digital era, and even more so since the arrival of the pandemic, significant opportunities exist for retailers that are able and willing to address their most pressing challenges and opportunities. Success, however, requires a commitment to fundamental transformation. Success will require meeting the ever-increasing expectations set by retail leaders who have invested heavily in new operational capabilities, including digital, omnichannel, fulfilment and service solutions.

But consumers are still spending and there is significant opportunity for retailers in many key sectors to plan ahead, capture market share and succeed in transforming their business. HRC Advisory has identified three essential steps for retailers to transform and thrive during these uncertain times:

• Strengthen brand differentiation to become the authority in their categories.
• Go on the offensive and retool the store fleet to strengthen omnicapabilities and profitably compete against online players.
• Create greater intimacy with customers and optimize the in-store customer experience, your greatest weapon to win against the online players and other competitors.

The Outside View: What Retail Apocalypse?