On the 2024 Board agenda: Consumer & Retail

Managing through disruption, investing for future growth

The agility and considerable resiliency of consumer and retail (C&R) companies strengthened during the pandemic will help most organizations weather the macroeconomic and geopolitical headwinds anticipated in 2024. In fact, many C&R executives have returned to a growth mindset. They are adjusting their product portfolios to increase their competitive positions and stabilize profitability.

However, the road over the next 12 months is unlikely to be a smooth one. The industry should anticipate potential impacts from a sluggish global economy and lingering inflationary pricing, influencing customers to limit spending while C&R margins remain under pressure from continued high labor and input costs. Meanwhile, global conflict, the expansion of generative artificial intelligence (AI), cyber threats, new rules and regulations, and especially the evolution of consumer behavior will keep directors and management on their toes.

With insights from our conversations with C&R leaders and consumer pulse surveys, we present 10 board agenda issues for directors to consider in the coming year:

• Establish a foundation for growth through an extended period of economic uncertainty, inflation, and high cost of capital.
• Bridge the customer experience gap between online and in-store shopping.
• Reshape the brand portfolio for profitable growth through wavering consumer demand.
• Understand potential impacts of geopolitical unrest and country concentrations.
• Monitor management’s design and maintenance of a governance structure to support the strategic long-term benefits of AI and generative AI.
• Leverage partnerships and digital technologies for direct customer engagement and an improved omnichannel experience.
• Incorporate supply chain efficiencies and other lessons learned from the pandemic.
• Prioritize talent management and culture, and understand their impact on labor.
• Improve cybersecurity resilience against the growing risk of the extended enterprise.
• Fine tune board structure and composition for effectiveness in an ever-changing consumer world.

Download our report for a more in-depth discussion about these issues and the role of C&R boards in guiding management through the coming year.