TMCnet News
Wal-Mart Continues to Be the Greatest Market Challenge to Retailers Says Capgemini Survey; The Impact of the Value Retailers Will Continue to Increase in the Retail IndustryCHICAGO --(Business Wire)-- May 5, 2005 -- In recent years, consumer product firms have faced a difficult growth market and intense pricing pressure, two facts re-confirmed yesterday in a study conducted by Capgemini U.S. LLC, a global leader in consulting, technology and outsourcing. According to the survey of more than 10,000 participants attending Food Marketing Institute Conference yesterday, even though many retailers have faced such challenges as industry consolidation (19%), sector blurring (18%), and the Internet (17%); Wal-Mart continues to be seen as one of the primary market challenges in the next decade. Over 40% of respondents believed that the retail giant is going to be a formidable opponent to their businesses in the next decade. Surprisingly, retailers are planning to drive profits and counter the Wal-Mart threat mainly by penetrating new markets (39%). Lowering operating costs (18%), investing in new technology (17%) and improving customer service (16%) were seen as second, third and fourth strategic options to increase business. Furthermore, the survey confirmed that almost half of retailers are seeing their SG&A costs continuing to increase. "The survey demonstrates that many retail companies are focused on beating the retail giants, yet they are unclear on how to best counteract the threat," said Tom Compernolle, Capgemini Consumer Products and Retail Practice leader, North America. "Though penetrating new markets is very important, companies should also focus on streamlining their supply chains and investing in new technologies that will eliminate inefficiencies and waste." The FMI Conference: The Power of Five conference is the annual premier food industry and supermarket event like no other--and one of the largest of its kind. The 2005 FMI Show's comprehensive programming and educational sessions provides the tools and resources needed to improve operations, increase ROI, and expand market reach. For complete survey results visit Capgemini on the Internet at www.us.capgemini.com. About Capgemini Capgemini, one of the world's foremost providers of Consulting, Technology and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience. Through commitment to mutual success and the achievement of tangible value, the company helps businesses and governments implement growth and transformation strategies, leverage technology, and thrive through the power of collaboration. Known as Cap Gemini Ernst & Young until April 15, 2004, Capgemini employs approximately 60,000 people worldwide and reported 2004 global revenues of 6.291 billion euros. More information about individual service lines, offices and research is available at www.us.capgemini.com. |
