Still room for independents in the future says retail think tank

9th February | consolidation | The prospect of a diminishing independent retail sector and a market dominated by the largest and most powerful retailers has been exaggerated, according to a collective of retail soothsayers.

The KPMG/Synovate Retail Think Tank, a retail industry panel, says niche players and smaller specialists can thrive as larger firms struggle to meet the changing challenges they face as they grow bigger.

In its latest white paper, which asks if there are limits to the growth of major retailers, the Retail Think Tank rails against the consensus view that the recession will lead to further market consolidation and the loss of smaller, independent firms.

Helen Dickinson, KPMG head of retail, says few large firms have historically succeeded in overcoming all the new challenges faced by larger firms as they grow, as new barriers emerge that hinder cohesion and focus.

She said, ‘There is still a long way to go to before a truly global market exists in retail. Although the RTT agrees that this process has already started, and the current downturn will act as a catalyst in accelerating this, we predict it could take 20 years to fully develop.

‘However, even then no single retailer can be all things to all people meaning that retail remains varied and competitive with a continuing role for niche players despite the continued, exceptional growth of the very biggest companies. ‘

To read the white paper, visit www.retailthinktank.co.uk