Over recent years, different factors have compressed retail and manufacturing margins. There is a growing need for a wide variety of products for many types of consumers, for example gluten-free and vegan food, extended sized clothing, and made to order items. These trends challenge mass market production.
COVID-19 and the migration to online shopping compressed margins even further. Some retailers are driven to expand to new product categories and services, compensating for low margins by expanding growing topline revenues. Technology supports this move by creating ways to quickly integrate new business models and new product offerings.
EBIT margin (adjusted) - Median value
Retail revenue growth and profitability by primary product sector, FY2019
How can retailers create opportunities to improve profitability or grow revenues?
With new data regulations, first party data is necessary to make this level of targeting work. To most efficiently use your budget, how do you allocate it to the right people at the right time with the right offerings?
½ of executives plan to use analytics for better decision making in 2021
(Source: Deloitte 2021 Retail Industry Outlook)