Retail Report: Why Digital Transformation Is Non-Negotiable

Retail leaders must look to digital transformation to forge a positive path ahead for their company.

Why? A tight labor market, high inflation, cost management, staffing challenges, and constantly shifting consumer preferences combine to create a complex and difficult environment for retail leaders to navigate.

How are they moving forward? Through the power of enterprise cloud technology for finance, HR, planning, and analytics-especially with AI at the core.

The new report from Coresight and Workday "Navigating Digital Transformation: Optimizing Retail Operations Amid Margin Pressure" includes data from global retailers that reveals how technology is playing a key role in how retail companies navigate challenging times and create a sustainable business model for the future.

With insights from a proprietary survey of retail leaders, the report discusses:

• Why the market matters. With fewer job openings per worker and higher-than-usual inflation rates, retailers are focused on competitive wages and retaining talent, as well as making sure their pricing matches shifting spending habits to avoid pricing out loyal customers.
• The battle with cost and margins. Among retail leaders surveyed, 54% said that operational planning costs are their hardest business cost to control, especially with the added complexity of omni-channel retailing.
• The importance of training and skills development. Among those surveyed, 47% identified training and building skills in their frontline workers as key challenges, along with high turnover and sharpening their recruiting and onboarding processes. Also, scheduling shifts when demand fluctuates leads retailers to seek advanced scheduling technology that powers flexible staffing models.

What's next: To help solve these common challenges, retailers are seeking out enterprise cloud technologies, especially in the areas of financial planning and human capital management. And not surprisingly, they see AI and ML as key aspects of digital transformation, especially to help detect and proactively identify unexpected costs.

Go deeper: For more insights into how retail leaders can pursue successful digital transformation to get ahead of a changing market, download the Coresight and Workday joint report here: "Navigating Digital Transformation: Optimizing Retail Operations Amid Margin Pressure."

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