The impact of geopolitical disruption on Australian retailers

Geopolitical volatility: four retail megatrends
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Navigating geopolitical risks in Australian retail

Geopolitical volatility is creating some of the biggest challenges that Australian retail companies face today, as well as opening space for new opportunities.

To not just survive but to thrive in the years ahead, retail business leaders need to understand how geopolitical disruptions will shape the challenges and opportunities ahead for their industry.

Geopolitical disruption – the new state of play for Australian retail gives business leaders access to detailed insights into the evolving state of world affairs and the geopolitical impact on supply chains, trade and economic policies, competition, consumers and markets.

The report uses four key geopolitical megatrends to explain global volatility and what it means for Australian retailers. It sets out how Australian retailers can plan and adapt their businesses to build resilience and strategic advantage.

Geopolitical disruption: the new state of play for Australian retail

Learn how geopolitical volatility impacts Australian retail and how businesses can adapt.

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Geopolitical volatility: four megatrends affecting retail

Shifting power balance is driving global tension
- An increasingly competitive world order means trade and investment are becoming weaponised as tools for national power – impacting consumer sentiment, energy prices and supply chains.
Perceptions of inequality is fuelling citizen mistrust
- Growing anger around the world directed at political elites is fuelling mistrust and unrest.
- Citizen unrest encourages populist leaders to emerge – bringing economic and political challenges for retailers.
- Consumers now have higher expectations that businesses, including retailers, will take a stand on contentious issues.
A ‘tech cold war’ is increasing competition and risk
- The tech revolution is increasing competition over frontier technology capabilities and is also raising cyber security risks for retailers.
The climate crisis is exacerbating geopolitical competition and instability
- As the climate crisis becomes more urgent, competition for renewable energy security and mass migration are two factors which will further disrupt manufacturing networks and export markets.

How can retailers build their resilience and navigate geopolitical volatility?

Stay on top of global developments

To better anticipate and adapt to disruptions, actively track changes in the global geopolitical risk outlook.
Model scenarios, map risks, and stress test operations and response plans

To identify important risks and opportunities, map multidimensional geopolitical risks and stress test operations and response plans.
Assess supply chains

To de-risk critical supplies, understand how geopolitics affects supply chains, and develop contingency plans.
Incorporate geopolitics into governance

To ensure geopolitical risk can be assessed across the full breadth of the company’s interests, design governance structures that are fit for purpose.

How KPMG can help

With expertise spanning retail, geopolitics, risk, trade, economics, operations and governance, supply chain strategy, scenario modelling, and corporate strategy, our team helps Australian retailers understand the impacts of geopolitical volatility across all areas of their business, and supports them to anticipate, adapt and build resilience for strategic advantage.

We can help your business navigate geopolitical risks and opportunities.

Contact us

About this report

Geopolitical disruption – the new state of play for Australian retail

Will your retail business withstand current and future geopolitical risks? Will it be able to adapt to make the most of new opportunities? The impacts of geopolitical disruption will play out over months and years. Learn how to adapt and prepare.

Geopolitical disruption: the new state of play for Australian retail

Learn how geopolitical volatility impacts Australian retail and how businesses can adapt.

Download

KPMG's geopolitics and retail specialists

Please get in touch if you’d like to discuss this report or how we can help you understand and navigate the risks and opportunities of geopolitical volatility on your retail business.

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