Every retail CIO faces the same challenge: how to maintain profitability in the face of perpetual disruption. The possible impact of persistent inflation is just the most recent addition to the profitability challenges faced by the retail industry since the start of the pandemic in 2020.
To compound the problem, a 2022 PwC report reported that constant disruption is shifting consumer expectations as inflation, supply chain issues, ESG awareness, and a potential recession affect availability, competition and values. The same report found that rising prices and the lack of stock availability are having a granular impact on purchasing decisions – 40% of consumers use comparison sites to look for availability and 37% shop at multiple retailers to meet their needs.
Retailers need to support consumers to overcome obstacles to shopping online and in-store so that they can maintain profits. Then, they can invest in the technologies that will help them to win and retain customers
So, what does this mean for retail CIOs who need to manage inflation?