Retail in Uncertain Times – How to Build Organizational Resilience and Gain a Competitive Edge
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Modern retail is facing significant turbulence, and 2026 is expected to be a true test of resilience for retailers. According to McKinsey & Company’s report “The State of Organizations 2026”, enterprises handle cost pressures, geopolitics, and market complexity better when they simplify processes, flexibly reallocate resources, and clearly define their most critical goals. Such actions should lead to a distinct advantage over the competition.
Key Insights
- 72% of enterprises report a noticeable impact of geopolitical uncertainty on their organization.
- Two-thirds of organizations consider themselves excessively complex and inefficient.
- 43% identify productivity as their top priority.
- Only 30% of organizations reallocate resources across the entire enterprise.
- The most resilient companies simplify processes, review budget and talent allocation more frequently, and focus better on their core business.
– Organizational resilience in retail is built today not only through the implementation of new technologies but also by making better decisions regarding processes, priorities, and resources – comments Anna Schabikowska, Marketing Director at Exorigo-Upos. Companies that simplify their operations as quickly as possible and focus on what matters most have a better chance not just of surviving market changes, but of leveraging them to their advantage.
Why has organizational resilience become so important for retail?
Retail operates today in an environment that is changing faster than ever before. The primary drivers include:
- Technology and AI,
- Economic and geopolitical uncertainty,
- Shifts in employee expectations and work models.
According to the McKinsey & Company report, organizations are increasingly shifting their focus from short-term resilience to long-term productivity and sustainable value creation. This is crucial because in retail, it is easy to focus solely on rapid response; however, companies need more than just a reaction – they need the ability to emerge from disruptions in a stronger position than before (a concept known as “bounce forward”).
Such resilience stems from flexible structures, better information flow, faster resource movement, and greater strategic clarity.
How does geopolitics currently impact enterprises?
According to the report, 72% of respondents declare a noticeable impact of the uncertain geopolitical situation on their organization. Companies need greater flexibility to handle growing unpredictability and sudden changes. This helps not only in mitigating risks but also in discovering new market opportunities more quickly.
McKinsey & Company authors emphasize that technology, data, and AI can support scenario planning, risk assessment, and faster resource reallocation. However, in reality, many firms still do not operate this way. 17% of organizations lack a defined methodology for assessing geopolitical impact, and only 26% conduct quarterly scenario planning.
Is excessive complexity the biggest problem for companies today?
Very often, yes. Two-thirds of leaders and managers consider their enterprises overly complex and inefficient, with 43% citing productivity as their number one priority. This is a vital signal for retail, as the industry has for years tried to improve efficiency through structural changes, centralization, or cuts.
However, such actions are increasingly yielding diminishing returns unless accompanied by improvements in organizational workflow. In practice, the problem is very tangible. One analyzed company duplicated 35% of decisions between different functions, held 60% more meetings than comparable firms, suffered two-month delays in data flow, and spent over 1,000 hours per month on manual reporting.
How does process simplification translate into results?
Very clearly! McKinsey & Company’s report shows that organizations can accelerate decision cycles up to threefold if they redesign processes end-to-end. The potential of optimization is illustrated by a CPG sector company: by synchronizing commercial processes, R&D, manufacturing, and procurement, it accelerated its time-to-market by 1.5 times. The result? Its pipeline value increased by 20 points.
From a retail perspective, the example of a European retailer is particularly interesting: by shortening its decision-making process within one week, it improved decision quality and built greater organizational resilience.
In another case, an FMCG company eliminated 70% of duplicate reports and decisions, reduced data volume by 30%, and implemented automated dashboards, resulting in faster operations and a 25% increase in employee engagement. This demonstrates that resilience starts with practical workflow organization.
Why is a focus on the core business so vital today?
In a highly volatile market, success cannot be achieved by spreading energy and resources thin across the entire organization. Companies must identify their must-win battles, choosing a few areas where they want to win and directing budget, talent, and managerial attention there with greater intensity. The problem, however, is that while 56% of executive teams declare clarity on these priorities, that figure drops to 27% at the middle management level.
For retail, this is especially relevant because commerce easily falls into the trap of running too many parallel initiatives: channel development, operational changes, system modernizations, new formats, local projects, and efficiency programs.
The “peanut buttering” strategy – distributing resources evenly across all departments – provides a sense of fairness but, in reality, dilutes the final impact. Organizations that direct capital to where the potential is highest create significantly more value than their more cautious competitors.
What blocks dynamic resource reallocation?
Most often, it is not a lack of funds, but organizational behavior. According to McKinsey’s report, only 30% of organizations reallocate resources at an enterprise-wide scale. The main barriers include resistance and managerial protectionism (41%), inefficient decision-making processes (38%), a lack of readiness for bold decisions (32%), and unclear priorities (30%).
Even when a company recognizes the need to shift priorities, the process is often blocked by local interests, rigid structures, and an attachment to projects that were important in the past but no longer support the current strategy. 74% of respondents limit staff rotation to 10%, and nearly half (47%) verify resources only once a year or less. In today’s dynamic market, this is insufficient.
How can a retailer build greater resilience step-by-step?
- Through quarterly reviews of priorities and scenarios, rather than just annual planning.
- Through deliberate redesign of cross-functional processes, instead of minor structural tweaks.
- Through greater clarity regarding which competencies are truly core and which merely consume resources.
- By faster reallocation of budget, talent, and attention to where the company can win.
The report also shows that more confident organizations are more likely to commit to comprehensive resource reallocation. As a result, they not only respond better to disruptions but also seize new opportunities faster. In retail, resilience is more than defense – it is the agility to direct the organization’s energy to where new value is being created.
Summary
Market-leading retailers are simplifying their operations, moving resources faster, and focusing with greater discipline on what truly matters. This combination—less complexity, more clarity, and greater flexibility—will be one of the most important sources of competitive advantage in the coming years.
The study behind “The State of Organizations 2026″report (can be downloaded here) was conducted between June and September 2025 among over 10,000 respondents. These are leaders and managers from enterprises with at least 1,000 employees, spanning 16 countries and 17 industries.
