While omnichannel retail is the biggest growth area for retailers, the majority of retail CEOs are focused on traditional growth areas.
Eighty-three percent of global retail CEOs believe that their retail supply chains are currently "not optimal" for today's changing retail environment, according to a recent study conducted by PwC for JDA Software.
At the same time, only 34 percent of CEOs consider the rise of omnichannel shopping to be an external threat, while only 22 percent said it will have a direct impact on their organization, according to the survey of 400 global retail CEOs.
"The rise of omnichannel is one of the most transformational shifts that has occurred in retail in recent times," said Baljit Dail, chairman of the board and interim CEO, JDA Software, in a statement. "Retailers who don't understand the strategic alignment of their supply chain with consumer expectations are in danger of becoming non-competitive."
Instead of focusing on omnichannel retail, CEOs say their top priorities are centered on more traditional areas of growth such as entering into new regions and markets, opening more stores, and mergers and acquisitions. "These priorities highlight potential missed opportunities for more than two-thirds of CEOs who failed to consider enhancing distribution capacity and supply chain as a key contributor to drive profitable growth," according to the statement.
However, JDA also found many CEOs who are focused on boosting their company's supply chain to effectively compete in the omnichannel realm. "Our Foot Locker supply chain is changing in the face of multichannel shopping. We're making it more responsive and faster," said Ken Hicks, president and CEO of Foot Locker, in the statement. "We are looking at new ideas and new ways to distribute goods, not just to get them to the store, but also to the customer."
In fact, 50 percent of CEOs recognize that their supply chain can be a strategic differentiator. And CEOs who focus on optimizing their supply chains have 15 percent lower supply chain costs, less than half the inventory levels and more than three times shorter cash-to-cash cycles.
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