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Issues and trends in the retail industry

Enterprise cost effective. The UK Retailing Industry is at a turning point, with the current economic climate and consumers being squeezed more than ever retailers need innovative solutions to counter the pressures of supply and demand. Failure to respond appropriately will lead to retailers vanishing from the retailing landscape, whereas a proactive and effective response will result in market share growth and greater returns for stakeholders.

Multichannel. In this point of view, we consider the evolution of the retail sector through the emergence of the connected consumers. We discuss the importance of truly integrated multichannel retail capabilities in serving this new consumer and the opportunities it represents in a low growth environment.

Real Estate. As the traditional retail model changes, retailers will need to reassess their store portfolios. The increasing costs of operating stores, changes in consumer behaviours and the growing online opportunity suggest that retailers will need fewer stores in future. Over the medium to long term we will see significant downsizing of store portfolios. This will vary markedly depending on the retailer’s category but reduction by as much as 30%-40% are foreseeable over the 3-5 years.

Restructuring. In these times of challenging market conditions there has been a structural change in the way retailers do business forcing retailers to weigh up a broader set of options in order to maintain their competitive positions. Our restructuring team can assist your retail clients to:

  • address the commercial, legal, internal structure, stakeholder and reputational planning issues alongside the financial impact of any restructuring plan
  • plan and implement strategies on a consensual basis or through more radical means, e.g. Creditors Voluntary Arrangement or insolvency restructuring approaches

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