Retail CEOs are worried about their supply chains, as the effects of rapidly-changing consumer behaviors and Covid-19 disruptions are still in place. Fortunately, with a national vaccination program rolling out, more CEOs are feeling confident about business prospects over the next three years.
That’s according to a recent survey of Retail CEOs conducted by KPMG, as reported by Chain Store Age. A whopping 92% of CEOs said they were confident or very confident about the retail sector’s growth prospects over the next three years, though 73% acknowledged the return to normal for their business will depend on encouragement from governments to lift Covid-19 restrictions.
Supply chain risks were top of mind for CEOs, with 43% agreeing it is the top concern. The Covid-19 pandemic exposed significant vulnerabilities in supply chains worldwide, prompting large response efforts, including the creation of the Critical Infrastructure Supply Chain Council from the Consumer Brands Association in May 2020 at the height of the pandemic. Other retailers have taken on individual efforts to expand their supply chains.
“The challenges in the supply chain are numerous from demand predictability, production capacity constraints, port delays, carton and driver shortages, as well as higher input and transportation costs,” said Matt Kramer, KPMG’s national sector leader for consumer and retail. “Ensuring products are efficiently delivered through the supply chain to customers with greater transparency will be both a challenge and significant focus in 2021.”
See the full story at Chain Store Age.