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Cost effectiveness in retailing

Your game plan for success

The UK Retailing Industry is at a turning point, with consumer confidence at its lowest level since February 2009. Along with the rise in commodity costs and decline in consumer spending, UK retailers continue to face increasing pressure on operating margins. These adverse conditions are as a result of structural changes in the retail environment, which necessitate innovative solutions to counter the pressures of supply and demand.

The latest Deloitte UK CFO survey* shows that for the first time in a year, cost control is the top priority for CFOs. Risk appetite has fallen at the fastest rate in four years during the last quarter from 40% to 20% with a shift towards balance sheet and cost reduction strategies.

This portal provides insight, analysis and case studies of where major retailers have successfully tackled operating costs. Analysis includes details of Deloitte’s lessons from the retail sector, common mistakes made and the importance of having a proactive and effective response to the structural changes in the retailing landscape.

Find out more

The six key pressures driving structural change in the UK retail industry – See how the UK retail industry has changed structurally.
The Deloitte retailer framework: Options to respond – Retailers need to consider the innovation of products and services, but also how to deliver efficiently and effectively to their customers despite the supply and demand pressures.
Five actions for underpinning growth – Whether focusing on growth, defending market share or fighting for survival, there is a need to review the impact of the market changes and react.

Deloitte’s retail capability

Deloitte have the capabilities and experience from working with retailers around the world to support the development of more cost effective retailing. Please download our report ‘UK Retailing at the Turning Point – Your Game Plan for success’ which provides a comprehensive overview of the strategies retailers need to adopt in response to the structural changes in UK retailing.

MORE A selection of cost saving opportunities to consider

Answering the cost challenge: Enterprise cost diagnostic
Since the recession, retailers have taken action to reduce their costs, mainly by mobilising their internal resources to identify opportunities for improving cost effectiveness.
Understand your performance: Process benchmarking
Rising import costs and VAT have led to an unprecedented squeeze on margins. With increasing competition for market share, the need to be aware of what your competitors are doing is ever greater.
Effective tax management: Tax cost reduction
Retailers are subject to a number of different taxes including: direct (UK and Overseas); VAT; business rates; customs duties; payroll taxes and compliance and National Insurance.

Useful links

Highlights

The Deloitte Consumer Review
Serving the connected consumer.
The multichannel retail opportunity
Retailers need to repond faster than ever before.
The changing face of retail
The new role of the store in a multichannel environment.

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