What: Research across 1,700 global transformations reveals that businesses implementing five or more success factors achieve nearly double the transformation success rate, with only one-third of transformations typically succeeding in accelerating value-accretive growth.

Why it is important: This research is significant because it identifies actionable success factors for retail transformation at a time when major retailers like Walmart, Next, and Breuninger are proving that systematic approaches to change yield measurable results.

The analysis reveals that successful growth transformations are more likely during economic slowdowns, challenging conventional wisdom. Companies must navigate three critical paradoxes: balancing creativity with disciplined execution, combining long-term vision with short-term foundation building, and developing adaptability through repeated transformation experiences. The appointment of a Chief Transformation Officer increases success rates by 22 percentage points, while above-average R&D spending adds six percentage points to success rates. With less than one-fifth of firms leveraging more than two success factors, there is significant opportunity for market differentiation through comprehensive transformation strategies. The research demonstrates that success compounds when multiple factors are combined, creating a clear pathway for sustainable growth in challenging times.

IADS Notes: Recent market evidence validates these findings across major retailers. Walmart's February transformation achieved 82% share value growth through strategic technology investments , while Next's January success demonstrates the power of measured innovation with careful cost control . Breuninger's October evolution to a digital multi-channel retailer, reaching 50% online sales , exemplifies successful leadership-driven transformation. BCG's March analysis confirms that companies balancing discipline with innovation achieve 21% higher returns , with April data showing doubled ROI for retailers making significant innovation investments .

The transformation paradox: how to grow when the growing gets tough