Retail - The Great Enabler
The Retail Sector council is an industry body, chaired by a Government Minister and whose c15 members include CEOs of a number of retail companies including Boots, Sainsbury, Amazon UK, Currys, Primark and others. McCarthy Hall CEO is a member of the council and was invited to join c4 years ago, to bring his vast experience of retail to the Council. David does not represent any company on the Council.
David was asked by the Council to prepare a report on The Future of Retailing and this report is now freely available. Please click on the link below, and see inside the report for more details on background. This is a discussion document and feedback to the Council is encouraged. Please see below for the main conclusions for this report
Main Findings:
1: Growth of discounting is a major global structural shift that will continue
2: Next 5 years will see around 1,000 more discount stores open
3: Penetration of online has peaked in some areas, growth will slow in other areas and some categories (like mass market food retailing) are not suited to home delivery
4: Total number of stores will continue to decline, with discount stores taking a bigger proportion of the reduced total
5: Discounting and online do not mix well. The discounters that keep opening stores have no meaningful online presence, or none at all
6: Employment in retailing continues to decline and the skill set needed to succeed is changing
7: The total tax take from retailing is set to fall considerably in the years ahead- presenting a major problem for the Treasury
8: The environment and related issues will be important but consumers will not pay much of a premium to save the planet. Companies that consider environmental issues should not be competitively disadvantaged for doing the right thing
9: The industry should be allowed to collaborate for the greater good of the economy, the environment and the consumer. Not all collaboration is bad
10: More concentration and consolidation is expected, with the top 5 companies in most sectors accounting for a bigger proprtion in market share
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