Home | Login | Contact

Who    What    Why



The Shape of Retail

This report by Alvarez & Marsal finds that store-based profit margins have more than halved over the last decade, driven by increasing operating costs and the legacy of inflexible lease structures. This has put a strain on large, multiple retailers that occupy up to 20 percent more store space than they need and can financially justify.

Key points include:
  • Despite the rapid growth of online retailing, even on its current trajectory, physical retail will still account for 65 percent of all sales over the next five years.
  • In the past decade, the value of online retail has risen four-fold, being worth an estimated £70.3 billion in 2018 and accounting for just under £1 in every £5 spent.
  • Operating costs rose by 2.4 percent in 2018. However, over the last five years, they have risen by 10.8 percent, with labour costs making up over half of the increase.

Related Experts

Erin Brookes
Managing Director
Alvarez & Marsal
Lynn Evison
Managing Director, Retail & Consumer Goods
Alvarez & Marsal

Related Insights

From the Inside Out Powering Digital Transformations with Data Who Will They Target Next?
Other Insights Contributed by Alvarez & Marsal:
Are you ‘Ready to Run?’ Ways of Working in a Crisis Surviving the Cash Crunch The Impact of COVID-19 Benchmarking Responses to COVID-19 True Transformation From the Inside Out Who Will They Target Next? Powering Digital Transformations with Data Activist Investors in Europe: Who Will They Target Next? Corporate Leadership in Disruptive Times Protect Deal Value with Effective Transition Service Agreements Shareholder Activism: A Survival Plan  Brexit: Relocation Challenges for Financial Services Firms Duty to Report on Payment Practices and Performance Fuelling Sustainable Growth What Makes Companies Vulnerable to Attacks from Activist Investors? Corporate Targets for Shareholder Activists in Europe Boards in Challenging Times The Impact of Brexit on the UK Food Sector Leading Large-Scale Transformation

Related Insights

Your Peers Also Read

CEO Research Results 2019 Leadership in Uncertain Times - Part 1 Benchmarking Responses to COVID-19 CFO Research Results 2017 The CFO as an Enabler