Elevating Retail Excellence: Risk Management and Human Capital Solutions for Modern Commerce
From storefront to supply chain, we understand the evolving risks facing today's retail operations. We’ve created a Financial Impact Report that focuses on aligning your business objectives with Risk Management and Human Capital solutions.
First, we ground our understanding of your business in the context of what is happening today in the wider industry…
Consumer Spending Trends
Wealthier Americans are significantly driving retail spending, bolstering the U.S. economy despite persistent inflation.
Federal Reserve research indicates that gains in income, home equity, and stock wealth have enabled affluent consumers to increase their spending, contrasting with lower-income consumers who face higher costs for essentials.
Source: ASSOCIATED PRESS
2024
2024
E-commerce Growth
E-commerce continues to expand, with online sales projected to grow from $1 trillion in 2022 to $1.7 trillion by 2027, increasing from 14.7% to 20.6% of total U.S. retail sales.
Analysts forecast that U.S. e-commerce sales will reach $1.7 trillion by 2027, accounting for 20.6% of total retail sales, up from 14.7% in 2022.
Source: THE FUTURE OF COMMERCE
2024
2024
Brick-and-Mortar Resilience
Despite the rise of online shopping, physical retail stores are experiencing growth by integrating in-person and online experiences and offering unique in-store services.
Retailers like Dick's House of Sport and Sephora provide experiences such as rock climbing and eyebrow waxing, attracting customers seeking services unavailable online.
Source: THE WALL STREET JOURNAL
2024
2024
Inflation Impact
Persistent inflation is influencing consumer behavior, with shoppers focusing on essential purchases and being selective about discretionary spending.
Retailers like Walmart have seen sales increases by offering attractive prices, while others like Target have faced stock declines due to weaker sales and diminished profit expectations.
Source: THE WALL STREET JOURNAL
2024
2024
Holiday Sales Outlook
Holiday sales growth is expected to slow to pre-pandemic levels, with projections indicating a 2.5% to 3.5% increase, amounting to $980 billion to $990 billion.
The National Retail Federation anticipates a 2.5% to 3.5% increase in U.S. holiday sales for 2024, reflecting a slowdown compared to the 3.9% increase last year.
Source: MARKETWATCH
2024
2024
We search for both Visible and Hidden Risks in your operations.
Visible Risks
- Property Damage (Stores, Warehouses, Distribution Centers)
- Inventory Loss and Shrinkage
- General Liability
- Workers' Compensation
- Cyber Security
- Product Liability
Next, we apply our EBITDA Edge framework to your business…
1
Discovery
- Comprehensive retail operations analysis
- Multi-location risk assessment
- Historical loss pattern evaluation
- Digital infrastructure mapping
- Customer experience risk assessment
2
Risk Mitigation
- Custom safety programs for retail
- Loss prevention protocols
- Employee safety training
- Cyber security frameworks
- Crisis management planning
3
Modeling & Analytics
- Foot traffic impact analysis
- Seasonal volatility modeling
- Market share assessment
- Operating cost optimization
- Revenue protection strategies
4
Claims Process
- 24/7 incident reporting
- Mobile-first documentation
- Customer incident response
- Business continuity planning
- Return-to-operations procedures
5
Risk Transfer
- Customized coverage design
- Market capacity optimization
- Alternative risk financing
- Cyber liability solutions
- Captive program development
We focus on the business drivers that impact your business…
-
Omnichannel strategy development
Digital transformation initiatives
Market penetration planning
Brand expansion strategies
International market access
Technology integration pathways
Customer experience enhancement
Risk Insight Edge application for growth opportunities
-
Inventory management optimization
Supply chain diversification
Distribution network efficiency
Payment processing security
Sustainable retail practices
Real estate portfolio management
Workforce management
Technology infrastructure resilience
-
Working capital optimization
Store expansion financing
E-commerce infrastructure investment
Vertical integration opportunities
Merger and acquisition support
Cash flow management
Asset protection strategies
EBITDA enhancement through risk control
Lastly, to execute on our goals, we’ve created a suite of world-class tools customized specifically for the retail industry…
Risk Mapping Edge
Comprehensive analysis of retail operations to identify and address unique risk exposures across your physical and digital presence.
- Multi-location risk assessment for stores and distribution centers
- Digital infrastructure and cybersecurity vulnerability mapping
- Supply chain resilience and inventory flow analysis
- Customer experience and liability exposure evaluation
- Employee safety and loss prevention risk assessment
Risk Insight Edge
Strategic analysis of retail industry trends and emerging opportunities in modern commerce.
- Omnichannel integration and digital transformation opportunities
- ESG compliance and sustainable retail practices
- Customer data protection and privacy requirements
- Market expansion and real estate portfolio optimization
- Technology adoption and innovation pathway analysis
Market Intelligence Edge
Deep understanding of retail insurance markets and rate environments across different coverage lines.
- Property and casualty market condition tracking
- Cyber liability coverage rate analysis
- Crime and theft prevention impact on pricing
- Carrier appetite for retail risks monitoring
- Emerging coverage options for digital commerce
Pricing Edge
Strategic approach to optimizing insurance costs through risk quality improvements and market positioning.
- Loss prevention program development and ROI analysis
- Safety and security protocol optimization
- Claims management efficiency improvement
- Risk retention and transfer strategy development
- Experience modification rate improvement planning