Following the unprecedented effects of COVID-19, retail businesses are focused on permanently shifting to online retail channels, according to Taulia, the fintech provider of working capital solutions.
Taulia surveyed more than 50 of the largest retail businesses globally to understand the retail ecosystem’s current trends, sentiment, and views following the pandemic in a new research paper.
The research has found that nearly one-third of the largest global retailers believe the impact of the pandemic on their industry will be permanent. The study suggests that businesses must prioritize building out their online retail channels and investing in the digital technologies required to facilitate these channels.
The research also highlighted the various ways retail businesses have adapted, or plan to adapt, in response to the turbulent past 24 months:
- 90% of retailers believe online transactions will continue at their current levels or increase over the next few years
- 90% of retailers said that supplier retention was critically important to their business strategy
- Nearly 70% of retailers have used or plan to use Supply Chain Finance, Dynamic Discounting, and early payment to support suppliers with their financial requirements
- 60% of retailers plan to transform their procurement strategy in order to adapt to geopolitical and social factors
Alexander Mutter, Head of EMEA Sales at Taulia, commented: “The past twenty-four months have placed a huge strain on many retailers, whether that strain was caused by a sudden need to pivot to focus on digital retail or pressures impacting their supply chain. Our survey has highlighted that not only is the retail industry embracing the need to adapt and be flexible, but it is also finding the necessary support to do so. The retail industry’s actions are ensuring the global supply chain responds to difficulties rather than breaking under the strain.
“The use of financial tools and technology across the retail supply chain has been and will continue to be crucial in protecting and strengthening the global economy. Supplier relationships are core to this and financial tools such as Supply Chain Finance and Dynamic Discounting enable this relationship to provide financial flexibility and ensure business continuity.”