Global Retail Consulting Market 2022-2028

Global Retail Consulting Market 2022-2028

Industry Analysis and Prospects

A retail consulting firm is an individual or an agency that assists customers to determine a retail strategy for stores and other types of retail businesses. The aim is to increase sales by driving more people to the store and attracting them to products once there. The global retail consulting market was valued at around $18.7 billion in 2021 which is anticipated to reach nearly $30.6 billion in 2028. The global retail consulting market is estimated to grow at a significant CAGR of 12.2% during the forecast period (2021-2028). Growing demand for retail consulting services, owing to the strong economic growth in the markets of regions such as the US, UK, Germany, and others is the major factor bolstering the growth of the market. Moreover, the regulatory reforms in the financial sector, the outsourcing of back-end operations to low-cost economies, and public investments are some other factors driving the growth of the retail consulting market across the globe. For instance, in February 2021, Walmart established IT sourcing catering to evaluate retailers and vendors of India. With this establishment, the company aims to increase outsourcing of software development and back-office projects to India.

Technological advancements and growing investment in innovations in digital retail consulting are projected to create enormous opportunities for the market. For instance, key companies are investing in retail consulting projects and research. For instance, in September 2021, Tomorrow Retail Consulting launched the ‘Global Omni Operations’ division led by international retail executive Daryl Porter. The launch comes as retailers face increased pressure to strengthen their Omni-fulfillment capabilities by improving productivity while expanding capacity. Furthermore, in September 2021, Shoppers Stop Ltd. collaborated with Accenture plc to accelerate its digital commerce transformation across multiple retail channels. The program aims to enhance customer experience and profitability, as well as support Shoppers Stop’s goal of being the go-to digital destination for customers through constant innovation.

COVID-19 Impact and Recovery Analysis

Impact of COVID-19 on emerging economies of the globe

The impact of the COVID-19 pandemic has various effects on different business operations of the retail industry. Due to the government's request for essential business continuity, retail businesses that handle food and daily necessities such as supermarkets, drugs stores, and convenience stores experienced positive growth. However, the retailers of shopping goods and luxury items deemed nonessential, such as apparel and home appliances, witnessed stagnant growth due to the imposition of measures such as lock down. Moreover, the COVID-19 pandemic impacted adversely in the emerging markets of the globe. In India, the economic output fell to 3.1% (2021: +4.2%) in the fourth quarter of 2021, which recovered dynamically in the second quarter of 2021 and is expected to grow considerably over the forecast period. In Japan, GDP sank by 4.8% (2021: +0.3%). On contrary, China was the only major global economy to report growth in 2021 under pandemic, of 2.3% (2021: +6.0%).

Besides, the COVID-19 pandemic has negatively impacted various industries, it is expected to present some consulting firms with opportunities. For instance, some organizations may seek the guidance and expertise of these firms to map out future strategies and business scenarios. Some firms may also need strategic expertise to restructure their operations in order to become digital, thereby ensuring business continuity and resiliency, in case of future disruptions. In 2021, the global retail consulting market was valued at $18.2 billion which decreased by 6.4% in 2021. The growth has been slowed down due to a higher infection rate and lower demand. However, the increased demand and inclination of retailers towards the adoption of digital supply chain and omnichannel consulting is expected to bolster the growth of the market in 2021 and beyond.

Industry Segment Outlook

Corporate finance held the highest market share of 21.0% accounting for $3.9 billion in 2021 and is estimated to reach nearly $5.8 billion in 2028. Financial retail consulting services provide services concerned with accounting, auditing, finance, taxation, and regulations. The services support retailers with finance transformation, defining and implementing risk management, compliance management, along with the financial planning of projects, fiscal & tax-related matters, mergers and acquisitions, and financing & debt restructuring. The growing demand for services such as treasury consulting, risk, and debt management from various retailers across the globe has fueled the growth of the market, especially post-COVID-19. The supply chain market is growing at the highest CAGR of 15.0% during the forecast period. The market was valued at $2.8 billion in 2021 and is estimated to reach $5.3 billion in 2028. The integration of advanced technologies such as AI coupled with the rising requirement of implementing a digital supply chain is expected to boost segmental growth. For instance, in March 2021, Pollen Consulting launched a new offering focused on assisting executives in the retail landscape with optimizing their supply chains. The service offers supply chain transformation across the retail value chain, including supply chain, logistics, warehousing, demand planning, technology, and internal operations. The firm also includes offerings focused on reverse logistics, 3PL procurement, contracting and tender support, and e-commerce & omnichannel fulfillment.

Region-Level Outlook

The global retail consulting market has been segmented on the basis of a few key regions which include the US, UK, Germany, France, China, Japan, India, and the Rest of the World. Among these, the US held the major market share of 48.5% accounting for $8.9 billion in 2021 which is estimated to be around $14.9 billion in 2028. The strong presence of several key consulting firms such as Boston Consulting Group, NextContinent, McKinsey &Co., Bain & Co., and others are driving the regional growth of the US country. Further, the rapidly rising demand for various service offerings such as digital transformation, e-commerce, Internet of Things (IoT), and Industry 4.0 is another factor surging the growth of the market across the region. Furthermore, the market in Germany is growing at the highest CAGR of 14.6% during the forecast period. The market valued at $2.0 billion in 2021 which is estimated to reach $3.8 billion in 2028. Growing demand for retail consulting from industries including automotive and banking is projected to create enormous opportunities for the market.

Key Market Players

Key players in the retail consulting market include Accenture plc, BONFIGLIOLI Consulting, Boston Consulting Group, Deloitte Consulting Group, ELIXIRR International PLC, and others. These players cover the majority of the market share and hold high operational and financial strength. These players have been actively adopting market needs and consumer demands. Here are a few recent industry highlights-

● In March 2022, Deloitte Consulting Group started building a metaverse environment across its store-of-the-future, particularly for the Middle East region to enhance virtual e-commerce. By adopting virtual commerce, consumer and retail companies will move to the next generation of selling on the internet.

● In June 2021, Dogma Alares assisted retail company Karaca ramp up its customer service operations, call center agents' capabilities, and technology solutions to meet current trends – successfully cutting 30% of the latter’s customer complaint costs.

● In June 2021, Tata Consultancy Services (TCS) launched a co-innovation and research center in New York, making retail transformation a key focus. Retail digital transformation is a key focus of a newly launched innovation and research center that TCS developed in New York.