Retailers: Managing store CAPEX in 2022

Overall, COVID-19 has disrupted all truths of the past for retailers. Around 15% of retail companies have benefited from healthy balance sheets throughout the lockdowns and have big ambitions for 2022-23. A larger group of companies (40%) struggled during the crisis and had to spend on specific measures, so need to manage their CAPEX efficiently to achieve pre-covid times finance health. A majority of companies (45%), especially non-food retailers, boosted by governments, needs to work on their CAPEX in order to appear as trustworthy as before. So what should you be focusing on if you are in the retail sector in 2022? 

Three main trends 

Expansion ? 

Today, a big in the retailer industry : expansion. Giants, such as Carrefour, will focus on new point of sales with more specific offers (local and sustainable or more discount prices), to be more specific regarding the needs of customers. These investments will be made on a global level (in Brazil and France for Carrefour): until 2026, Carrefour aims at opening Atacadão stores in Brazil in 2026, and launch a similar discount branch in France by autumn 2023. Carrefour supports this new project with €2.0 bn investment. Recently, two big actors in the retail sector - Decathlon and Zalando have mutually agreed on a new idea - Reshoes- working on the circularity of footwear industry working on automatic lines to process 1000 shoes on a daily basis.

Managing store CAPEX  

Regarding a POS, the property is part of the CAPEX as well as all other investments that are made regarding the store itself such as storage space or items such as furniture and shelves. For both retail and luxury companies, opening new stores means having the same investments on a country and/or global level. Thus, adopting a unique CAPEX management strategy is a key success factor: allowing information to be shared vertically and horizontally across markets. With the right tools, managing store CAPEX on a global scale is easier, because it leverages all data the correct way for. 

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Investing in new technologies 

For retailers companies, new technologies are key in their CAPEX strategy. Digital-in-store investments are highly popular in 2022 and are well received by clients who want a more personalized and unique experience, thanks to technology It means smart vending machines for fashion retailers and in-queue checkout with an app launched my M&S in the UK and Monoprix in France, allowing faster checkout and personalized discounts in store based on the client’s history in terms of purchase and wishlist. It means investing in digital tools on-site to create a frictionless experience between online and offline. By implementing tools such as Apple Pay, Google Pay or Amazon Pay, it’s possible to drastically increase purchase speed.

Digital projects in stores need to be managed even more efficiently due to the current economic climate: it means having a unique and shared process for all digital projects in all shops, with the same validation processes and data collection and circulation. 

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