Click here to close now.




















Welcome!

News Feed Item

Retail Executives Embrace Omnichannel Approach in 2014 to Keep Up with Consumer Trends: KPMG Survey

Customer retention on top of executives' minds; Linking all retail channels is key, but poses some risks and challenges

NEW YORK, Sept. 3, 2014 /PRNewswire/ -- In an effort to better respond to an increasingly online and mobile customer, 70 percent of retail executives said their organizations have adopted an omnichannel strategy to link the consumer's in-store experience with the company's website, mobile device application and social media platforms. This strategy, according to the 2014 Retail Outlook Survey by KPMG LLP, the U.S. audit, tax, and advisory firm, will help create a seamless shopping experience for the consumer.

According to the survey, 53 percent of executives in the retail sector feel that they are ahead of their peers when it comes to omnichannel adoption. When asked which three channels they have increased spending on in 2014, executives cited their company website (67 percent), physical/permanent stores (47 percent) and social media platforms (46 percent) as the most important areas.

"Consumer preferences have evolved, and the omnichannel approach has become an imperative for organizations to provide their customers with the shopping experiences they demand," said Mark Larson, KPMG's U.S. and Global Retail Sector Leader. "Organizations that have adapted well to the rise of e-commerce, customer mobility and other technological disruptions of the last decade are showing some early signs of breaking away while others are still near the starting line. Regardless of where they are in the process, one thing is clear – retailers have acknowledged the shopping habits of today's consumer and they are making transformational changes to embrace them."

Adopting an omnichannel business strategy may be costly, however. Fifty-three percent of retail executives surveyed stated that the cost and complexity of technology upgrades were one of the main challenges their organizations faced.

Cyber security is also a rising issue. Currently, 77 percent of executives surveyed say that their companies share customers' personal and payment information across their channels to make for a more seamless shopping experience. In light of the large-scale cyber breaches this year at retailers across the country, executives may need to reevaluate what customer information they share across their channels and determine the appropriate level of security necessary to protect that information.

Revenue Growth and Focus

According to the survey, 70 percent of executives identify customer retention as the most significant driver of revenue growth over the next one to three years. To assist in retaining customers and executing an omnichannel strategy, retail executives are evaluating their operational efficiencies and technology investments. Forty-two percent of retail executives say that operational efficiencies and applicable technology updates have consumed and will continue to consume the most time for senior leadership in 2014.

Nearly three quarters of the executives surveyed have increased spending in their technology capabilities and new products or services.

The Challenges Ahead

According to the survey, an overwhelming majority of executives agree that they are at least on par with risk management in comparison to their peers (87 percent). Despite this, however, there are many pressing challenges that retail executives have identified as obstacles for the remainder of 2014 and beyond.

Forty-one percent of executives cited the Affordable Care Act as a high-priority compliance area that their organization has begun to address and will continue to address in 2014. Thirty-four percent stated payment card industry compliance is the next highest priority, followed by federal and state tax changes (29 percent).

Forty-one percent of executives surveyed stated that losing share to lower-cost competitors is the top threat to their organization's business model. In relation to lower-cost competition, 36 percent stated that discounting and other sales incentives have had and will continue to have the greatest negative impact on their company's profit margins during 2014.

THE KPMG RETAIL INDUSTRY OUTLOOK SURVEY

The KPMG survey was completed in the spring of 2014 and reflects the viewpoints of 100 U.S. senior executives in the retail industry. Based on revenue in the most recent fiscal year, 19 percent of respondents work for retailers with annual revenues exceeding $10 billion, 10 percent with annual revenues between $5 billion to $10 billion, and 21 percent with revenues in the $1 billion to $4.9 billion range.

About KPMG LLP

KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International's member firms have 155,000 professionals, including more than 8,600 partners, in 155 countries.

Contact:
Brandon Hatler 
KPMG LLP 
201-307-8637 
201-638-5263 (mobile) 
[email protected]

SOURCE KPMG LLP

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.