From the rise in popularity of AI to increasing staffing costs, many businesses are in agreement that the year ahead could be a challenging one as 53% of business leaders say that their business plans for 2025 are more about survival than growth.
With this in mind, technology innovation experts, GlobalDots, polled businesses to uncover their top concerns for the year ahead. Of those polled specifically in the retail sector, 48% said that their business plans were about survival over growth, with the biggest worry being the rising costs of running their business (67%).
What are the top concerns amongst retail business leaders?
The survey uncovered the top concern amongst retail businesses polled to be rising running costs, with 67% expressing this as a worry.
Cyber-attacks (15%), keeping employees safe from redundancy (15%) and skills gaps (15%) were all the second most common worry amongst leaders in retail. However, despite 15% saying that cyberattacks were a concern for them, 56% at least somewhat agreed that they would feel prepared to handle any attacks that were to occur.
Top concerns:
- Rising running costs: 67%
- Cyberattacks and cyber security: 15%
- Keeping employers safe from redundancies: 15%
- Skills gaps: 15%
- Employee performance and retention: 11%
- Sustainability regulations: 7%
- AI and data automation: 7%
- Remote or hybrid working: 7%
What are the changes retail businesses are looking to implement?
The survey went on to reveal the most common changes retail businesses are looking to implement for the year ahead. Adjusting pricing strategies (41%) was the most common change for those in retail.
Other changes business leaders in retail stated they would be making include:
- Adjusting pricing strategies: 41%
- Improving customer service: 26%
- Adding clear sustainability goals: 26%
- Tightening cybersecurity solutions: 19%
- Enhancing digital presence: 19%
- Investing in new technologies: 15%
- Implementing AI-driven tools: 7%
- Restructuring workforce models: 7%
Looking at the external factors influencing these changes amongst retail businesses, shifts in consumer behaviour (48%) was the top influence. Other influences include:
- Economic uncertainty: 43%
- Industry trends and competition: 30%
- Government policies or regulations: 22%
- Global geopolitical events: 17%
What are the primary goals of these changes?
Furthermore, the survey also looked to uncover what the primary goals are behind the changes retail businesses are putting in place. With rising costs stated as the top concern, 30% said their primary goal was to provide a boost to performance.
The top goal, however, was improving operational efficiency with 43% stating this. Further goals include:
- Improve operational efficiency: 43%
- Enhance customer satisfaction: 35%
- Provide a boost to performance: 30%
- Expand into new markets: 26%
- Increase employee engagement and retention: 17%
- Meet sustainability targets: 13%
Further findings from the study can be found here: https://www.globaldots.com/
A spokesperson at Global Dots commented on the findings: “With many continuing technological advancements and new government policy changes in the pipeline for the year ahead, it’s no surprise that businesses are focusing on adjusting to these changes rather than putting growth at the forefront of their strategies.
“It’s clear from the data that AI advancements are both a worry but also an opportunity for growth for some business leaders. As AI continues to develop, businesses must be sure their use of this technology is done so safely, by investing in web and cloud security, such as GlobalDot’s Cloud Security Solutions, as well as ensuring employees are well educated on using it.”
