Gartner Blog Network

Retail Has the Highest Perception of Risk for Disruption From New Market Entrants

by Robert Hetu  |  June 4, 2018  |  1 Comment

As Amazon and Alibaba continue to gain market share in several geographies, retail’s existential threat is not going to wane. Other disruptive models are emerging such as the combination of insurance giant Aetna with CVS, and the planned merger of Asda and Sainsbury’s in the U.K. Target’s purchase of Shipt, and Walmart rising as the victor after battling with Amazon to acquire Flipkart in India further show the rapid impact of digital transformation.  In a recent Gartner survey, retailers indicated that they clearly understand the danger presented by new market entrants.

digital disruption


In fact retail placed itself at the highest risk of all industries surveyed.  However, the perception of risk does not appear to be enough of a catalyst for moving decisively toward transformative business models across the industry.  Despite the urgent nature of digital business transformation, only 3% of retailers are harvesting results from delivering and scaling digital business initiatives.

Customer experience is the battleground for the future of retail, but retail respondents overwhelmingly (63%) identified customer engagement as being at significant risk of disruption. This is an extremely real and dangerous threat. Disruptors seek the weakest parts of the customer experience, emphasizing the benefits of their solution and converting customers in the process. Every retailer must carefully examine the daily experiences of its best customers. If a retailer is not already losing customers, now is the time to find the weaknesses in its engagement with customers. The retailer should be asking itself the question: How easy would it be for us to disrupt our business?

Gartner clients can read more results from the survey and recommended actions here:

Digital Business Transformation: A Retail Perspective






Additional Resources

View Free, Relevant Gartner Research

Gartner's research helps you cut through the complexity and deliver the knowledge you need to make the right decisions quickly, and with confidence.

Read Free Gartner Research

Category: retail-trends  technology-and-emerging-trends  

Tags: alibaba  amazon  competition  consumers  customer-analytics  customer-centricity  digital  ecommerce  multichannel  omni-channel  stores  unified-retail-commerce  

Robert Hetu
VP, Analyst Retail
7 years at Gartner
29 years IT Industry

Bob Hetu is a Research Director with the Gartner Retail Industry Services team. His responsibilities involve tracking the technology markets and trends impacting the broad-based retail merchandising and planning areas. Mr. Hetu is an expert in the areas of brand, vendor and assortment management, merchandise planning, allocation, and replenishment. Read Full Bio

Thoughts on Retail Has the Highest Perception of Risk for Disruption From New Market Entrants

  1. لوستر says:

    That is right in retail area.

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.