Retail Headwinds: Rising Costs Continue to Challenge Retailers
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The retail landscape in 2022 brings an array of challenges that will stress the strategic capabilities of management teams across areas of operations. With rising inflation and critical operational challenges, retail success in 2022 demands creativity in striking a balance between the needs of the business and an increasingly cautious consumer.
Where Have We Been? Where Are We Going?
The onset of COVID in early 2020 presented challenges to retailers that demanded flexibility, quick decisions, and accelerated adoption of innovative approaches to customer service. In 2021, supply chain delays and product availability added more complexity to an already demanding situation. These operating challenges have been with us for two years now and have not mitigated.
In 2022, supply chain issues, rising freight and labor costs, product costs (inflation), and shortages of qualified workers continue to impact the availability of product and strain corporate profit margins. In addition, reduced economic stimulus and intensifying geopolitical issues have added complications for retailers and consumer goods manufacturers.
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