Half of retailers have less than 3 months of cash on hand
SURVEY SNAPSHOT
For retailers, to be resilient means big ideas and bold moves on tight timelines. Even amid COVID-19 pressures, some retail CFOs are accelerating digital transformation and doubling down on innovation. Those taking the slow road have a steeper climb to recovery.
2021 Retail CFO Outlook Survey
Bold Resilience
Aggressive cost management is necessary to enable digital investments
Whether surged or sank, demand changes pose challenges
Almost all retailers are tapping outside capital this year
Restructuring and reorganizations are on the rise
Nearly half of retailers are expanding product or service offerings
Resilience Requires Relief
Not every retailer is in financial distress, but most are strapped for cash—a challenge that will take a combination of new capital injections and ingenuity to overcome.
For many, making bold changes means overhauling their business’ foundations: from digital capabilities and business models, to capital structure and financial models, to organizational architecture and processes.
Rebuilding the Foundation
Some retail segments experienced short-term demand spikes, while others suffered from demand droughts. In either case, unpredictable shifts in customer purchasing behavior have been a significant test of agility.
Say shifts in product demand is their top business risk
51%
Responding to Demand Shifts
Cite inventory overstock as their #1 supply
chain challenge
24%
Are expanding product or
service offerings
48%
Will increase their investment in
e-commerce in the
next 6 months
64%
PROJECTIONS FOR REtail
The 2021 BDO Retail CFO Outlook Survey polled 100 retail industry CFOs with revenues ranging from $250 million to $3 billion in September 2020. The survey was conducted by Rabin Research Company, an independent marketing research firm, using Op4G’s panel of executives.
Methodology
ANNUAL REVENUE
Survey Respondents
RETAIL SEGMENT
BDO'S TAKE
Retailers should use outside capital to invest in what’s next rather than what has always been done. While it’s natural to take a conservative approach during crisis and focus exclusively on cutting costs, true resilience is more likely for those reallocating to revenue-generating activities and strategic investments.
41% of retailers say their business is struggling
Economy
84% of retailers secured government assistance
regulation
#1 source of outside capital: sale or divestiture
response
plan to increase their
IT investments
71%
are reevaluating their
real estate footprint
40%
Foundational shifts
are undergoing a restructuring or reorganization
42%
Which of the following will be your top 2021 business priority?
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Methodology
Survey Respondents
BDO'S TAKE
Regardless of category, the challenge moving forward for retailers is sorting out the short-term effects of the pandemic, from the long-term shifts in shopping behaviors and demand patterns.
BDO'S TAKE
The crisis settled any lingering doubts that the future of retail is digital. This is why, despite ongoing liquidity and cash flow challenges, investing in technology tops the list of retailers’ business priorities for 2021. Therefore, aggressive cost management will remain a priority in order to make these investments.
LEARN MORE
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PROJECTIONS FOR REtail
Cite inventory overstock as their #1 supply
chain challenge
24%
Will increase their investment in
e-commerce in the
next 6 months
64%
Say shifts in product demand is their top business risk
51%
Are expanding product or
service offerings
48%
Some retail segments experienced short-term demand spikes, while others suffered from demand droughts. In either case, unpredictable shifts in customer purchasing behavior have been a significant test of agility.
Responding to Demand Shifts
plan to increase their
IT investments
71%
are undergoing a restructuring or reorganization
42%
are reevaluating their real estate footprint
40%
Foundational Shifts
Which of the following will be your top 2021 business priority?
BDO'S TAKE
The crisis settled any lingering doubts that the future of retail is digital. This is why, despite ongoing liquidity and cash flow challenges, investing in technology tops the list of retailers’ business priorities for 2021. Therefore, aggressive cost management will remain a priority in order to make these investments.
For many, radical change means overhauling their business’ foundations: from digital capabilities and business models, to capital structure and financial models, to organizational architecture and processes.
Rebuilding the Foundation
41% of retailers say their business is struggling
Economy
84% of retailers secured government assistance
regulation
#1 source of outside capital: sale or divestiture
response
BDO'S TAKE
Retailers should use outside capital to invest in what’s next rather than what has always been done. While it’s natural to take a conservative approach during crisis and focus exclusively on cutting costs, true resilience is more likely for those reallocating to revenue-generating activities and strategic investments.
Not every retailer is in financial distress, but most are strapped for cash—a challenge that will take a combination of new capital injections and ingenuity to overcome.
Resilience Requires Relief
Half of retailers have less than 3 months of cash on hand
Aggressive cost management is necessary to enable digital investments
Whether surged or sank, demand changes pose challenges
Almost all retailers are tapping outside capital this year
Restructuring and reorganizations are on the rise
Nearly half of retailers are expanding product or service offerings
SURVEY SNAPSHOT
Extraordinary times call for extraordinary measures. For retailers, to be resilient is to be radical: big ideas and bold moves on tight timelines. Even amid COVID-19 pressures, some retail CFOs are accelerating digital transformation and doubling down on innovation. Those taking the slow road have a steeper climb to recovery.
LEARN MORE
2021 Retail CFO Outlook Survey
Radical Resilience
Methodology
Survey Respondents
DOWNLOAD THE full REPORT
BDO'S TAKE
Regardless of category, the challenge moving forward for retailers is sorting out the short-term effects of the pandemic, from the long-term shifts in shopping behaviors and demand patterns.
The 2021 BDO Retail CFO Outlook Survey polled 100 retail industry CFOs with revenues ranging from $250 million to $3 billion in September 2020. The survey was conducted by Rabin Research Company, an independent marketing research firm, using Op4G’s panel of executives.
Methodology
ANNUAL REVENUE
RETAIL SEGMENT
Survey Respondents
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