A new industry survey shows that UK retailers are optimistic about their growth prospects in the coming years, but face challenges in scaling up their operations to meet these targets.
The study also highlights that retailers see an opportunity to solve part of the chain by partnering with logistics companies that offer shared user facilities and technology.
A new study by Wincanton, a UK enterprise** chain partner, found that 83% of UK retailers plan to see an increase in orders over the next three years. The logistics company said it was a sign of a resurgence in confidence in the UK retail sector after a period of difficulties, including those caused by the pandemic and Brexit, and a huge opportunity for the sector.
However, the report highlights that there are a number of challenges that retailers need to overcome to achieve any such growth. Some 89% of respondents said that an increase in orders negatively impacts their ability to successfully fulfill customer orders.
At the same time, 68% of survey respondents said that the shortage of quality labor has negatively impacted their ability to meet customer demand, and that labor issues may prevent them from scaling up during peak demand periods.
Many retailers are also struggling with the investments required to modernize and implement robotics or automation in their operations. Some 61% of respondents said it would not be feasible to invest in the sector in the next five years.
The data also shows a potential solution, as shared user facilities can help alleviate labor and investment issues. This will enable retailers to increase the flexibility of the chain, with 7 out of 10 retailers agreeing that outsourcing fulfillment and logistics functions will make them more agile.
In addition, 69% of respondents believe that using a managed shared transportation network will improve their ability to cope with fluctuations in demand.
Carl Moore, Managing Director of Wincanton Efulfilment, said: "It's fantastic news to hear that UK retailers are planning growth, even against the backdrop of so many challenges. Adopting a more collaborative chain approach, such as shared warehousing and transportation solutions, will go a long way towards making retailers more agile and able to achieve their target growth. ”