Re-Generating Retail

Lahti:  Digitalization has accelerated across the spectrum in terms of internal processes and management practices, throughout the supply chain and the consumer experience, i.e. online groceries, home delivery. While these are quick solutions for retailers, the longer-term opportunities would be collaborative service concepts, integrating pieces from different companies under one concept including services or/and products, for instance automotive broadening its scope to leasing, services from new and used car sales online and shop floor practices.

Petrelli:  The biggest opportunity is in the control of data and digital experience. The more companies can drive customers directly into their digital territory rather than third-party platforms, the more they control the experience and, ultimately, the revenue stream and margins. And digital is not only about ecommerce, meaning some retail companies might need to rethink their digital presence completely.

Kershaw: It’s all about digital. We’re finding that some of the most disruptive leaders are not long-time retailers, but technology leaders who have segued into retail.

Tänzler: From social distancing restrictions, increased health and safety protocols, and wavering consumer confidence, significant uncertainty remains within retail. How is the segment adjusting in the short term? What can we expect to see in the long term?

Kershaw: Across Canada and North America, we’ve seen significant uptick in two broad areas: digitally savvy leaders who can enable the business through technology and data, such as CTOs, CIOs and heads of eCommerce. Also chief people officers, some of whom are carrying wider portfolios, e.g. ED&I or social purpose, that specifically address the needs of a traditionally younger retail workforce.

Petrelli: Country managers and chief data analysts are current high-demand roles. But if I look more forward, from the trends I’m seeing across APAC, there are two C-suite functions on the rise: the chief customer experience officer, to manage both the online and offline customer experience; and the chief data officer as a leadership function that can capture, analyse, and leverage data intelligence to create new sales opportunities or reduce costs.

Lahti: I agree and do see a rise in those areas across the Nordics and Europe. Specifically, there is increasing demand across several functions: business leaders, including CEOs, digital marketing and omnichannel sales leaders, CFOs with M&A and funding background, as well as board chairs and members with focused backgrounds and transformation experience.

Tänzler: Many leadership lessons will be learned from the pandemic. What do you feel will be one of those top lessons?

Kershaw: If we want the life we had, we need to support the life we want. If we, as consumers, value a certain store or method of retail, we need to support it. Many consumers are rewarding their favourite small independent restaurant or store. Leaders who can mobilize the public with this call to action will be rewarded.

Lahti: There are several. A top lesson is the value of timely decision-making and implementation. Another is the ability to harness agile innovation and concept development, with a commercial mindset.

Petrelli: A chief lesson – and mindset transition – is that we can lead remotely, without physical interaction, at least when there is a pre-existing knowledge of the people in the team and a pre-existing level of trust. In the future, when more and more people are hired without an in-person interview who are working with team members remotely, it will be essential to focus more on personality fit, leadership assessments and integration programs for new team members. There will be an increased need for shared knowledge of people personality and leadership styles among team members. Even more important will be team and individual coaching, to foster a sense of belonging and align people with the organisational culture.