What: The World Congress Report has identified six questions that are challenging retail leaders around the world.

Why it is important: Retail CEOs across the globe concur that there has never been a more challenging time to be a leader in the industry during the past three turbulent years.

The past three years have been a disruptive international stormfront for the retail industry. From Covid-19 and its collateral damage to the invasion of Ukraine, retailers have dealt with a multitude of disruptions to their operations.

CEOs have had to deal with supply chain bottlenecks, “the great resignation” employment crisis, and inflation while figuring out how to serve their stakeholders and move the business forward in unprecedented times.

The World Retail Congress has sat with its Advisory Board and spoken to multiple senior retailers to identify the biggest issues that retailers are facing. The core business issues that drive success or failure are consistent and similar across sectors and countries.

The Congress has extracted a year of research, filed reports, and extensive conversations to identify six questions that are challenging retail leaders:

1. When can I be uncertain that uncertainty is over? 

Uncertainty makes planning and forecasting virtually impossible. The post-pandemic period has proven to be even more challenging given the economic, geopolitical, and social uncertainties. Retailers have had to accept that they can’t influence external factors and have to work around and through whatever conditions existed.

Retailers must plan and build with the anticipation that something economic, social, or geopolitical can suddenly change things. Successful retailers will build a new level of resilience to meet short- and long-term challenges while not sacrificing the needs and demands of consumers who call the shots.

2. Where should I be focused? 

Given the fast pace of change over the last three years with challenges coming from all directions, leaders shouldn’t be faulted for not knowing where to focus their time. Being stagnant isn’t an option in our digitally connected world and placing core, big investment bets on the future are critical.

The key is to focus equally on extinguishing the immediate, medium-term, and long-term issues. Building resilience through the balance sheet, investing in delivering value, and never letting up on accelerating change throughout the business are all vital and critical to the success of the business.

3. I really do believe in sustainability, but let’s get through today’s problems

Many retailers have yet to implement meaningful sustainability actions due to costs that would lead to massive operational disruption to the organization. However, starting a sustainability strategy is now expected by consumers, legislators, stakeholders, and the media, giving these retailers no choice.

Winning retailers understand that sustainability can improve the bottom line and gives a strong sense of purpose to deliver sustainable goals for the environment, their customers, employees, communities, and investors.

4. I need to understand the TikTok Generation. In fact, I’m not sure I understand my customers anymore!

Multiple senior retail leaders noted that one of their biggest worries is not understanding younger consumers who live in a digital world. They are still apt to shop and purchase products, but in ways retailers above the age of 30 can’t fully grasp. The shift goes beyond younger generations, with all consumers now having the ability to control from whom, when, how, and where they shop.

Retailers need to blend art and science to meet the demands of these digitally engaged consumers, which involves the smart use of data and personalization. Mastering how customers come into the retailer’s ecosystem is key; identifying which partnerships, products, or services can be offered to target customers to bring them closer will be beneficial.

5. E-commerce growth has slowed, so where do I place my bets for the future? 

Online business has slowed as footfall returns to stores. The key operational concept is now omnichannel, which will lead to a new wave of digital transformation with new technologies such as AI tools, the metaverse, social and voice commerce, live streaming, and short-form videos.

Future bets must include a refocus on the customer experience and investments should be made in an omnichannel future that includes tech and experiential solutions that follow the customer journey.

6. Do we have enough of the right people with the right skills?

The big focus of 2022 was the loss of millions of people in the workforce. While the employment rate has increased, retail needs to attract and retain a workforce of diverse skills and experiences to grow the industry.

The best retailers already know that this means making their business attractive, open, and forward-thinking if they are going to succeed.

While the biggest issues are shared by most retailers around the world, the difference between great retailers is that they are the ones trying to find solutions and ways to move forward. The retail industry is driven by the need to serve customers and find growth, which should be considered as the world enters a new digital landscape with changing consumer behavior.

World Retail Congress presents six major issues facing retail leadership