Retail Venture Builder.
Technology is a critical business necessity, not just a strategic lever for the retail industry in 2020.
The real challenge of retail in recent years has been a decline in return on assets, especially physical stores. Innovation and smarter investment in technology can help reverse that trend.
- As the cost to increase market share grows, the return on assets has declined bucking a long-time trend
- One notable exception to this rule has been Amazon, whose ROA grew during most of the same period.
- Growth via new stores has been traded for growth via big investments in all areas of the business.
- To stay competitive incumbents are shifting investment strategies.