Turning Profit Destruction Into Customer And Shareholder Value

"Digital has been a major strategy for retailers for the past decade, though it means different things to different companies. But for almost all companies it has led to profit erosion. As the industry prepares for a difficult 2023 in the face of potential recession and other disruptions, retail leaders need a path to profitable growth through Digital-First Retail."

Matt Clark, Head of Retail EMEA at AlixPartners

RESEARCH

Turning profit destruction into customer and shareholder value

Digital commerce drove retail's growth over the past decade. But our analysis shows that as online penetration grows, retailers' profits shrink. The cost of serving customers anytime, anywhere, at any speed does not bring in enough topline growth to best monetize existing investments in machinery and technology.