Retailing has been experiencing, in the last few years, a consolidation trend as the market’s natural growth slows down and approaches its potential.
Major international players have been carefully looking at markets previously thought to be reserved for local companies, pushing the need to scaleup, in order to be able to compete. In fact, as in other sectors, scale is increasingly an issue in retailing, as it allows for a greater negotiation power when dealing with suppliers and provides opportunities for synergies, especially, in distribution centers or transportation fleets.
The imperative of growth has led to a decrease of operational margins and the search for more efficient models to address customer needs and gain or maintain the desired “share of mind”. The emergence and consolidation of on-line retailers, the proliferation of own brands, the growing attention on lean supply chains and logistics optimization, the use of powerful IT tools that are able to seamlessly integrate large amounts of data (not only for inventory control but also for consumer behavior analysis) and the constant renewal of store layouts and brand images, are some of the key events that stand out in the sector.
On the other hand, consumers have become much more demanding, looking for more value, better service and greater convenience. The exposure to highly competitive and diversified retailer products, the growth of business models in which the need for physical proximity is no longer an issue, the straightforwardness in comparing prices for similar products, all mean that the industry motto of “location, location, location” doesn’t carry as much power as used to.
Leadership Business Consulting offers a broad range of services to support companies in meeting these challenges, aiming to increase shareholder profitability through cost reduction programs, strategic visioning, organizational design and implementation, logistics concepts, among others. Our goal is to create value in a dynamic market, where time to market and the ability to execute are key to success.