Less than a fifth (17 percent) of retailers can be considered true innovation leaders, despite the majority recognizing the critical importance of such forward thinking for growth. That’s one of the major findings contained in a survey of 233 retail executives undertaken by Incisiv and Toshia Global Commerce Solutions.
The survey found that innovation leaders outperform their non-leader counterparts in several key business metrics. For instance, retailers categorized as innovation leaders have a three-year revenue compound annual growth rate (CAGR) of 6.2 percent, whereas non-leaders have a three-year revenue CAGR of just 0.7 percent.
But while 92 percent of retailers acknowledge the importance of innovation for future growth, only 22 percent actively encourage and reward risk-taking and experimentation within their organizations. This disconnect highlights a lack of alignment between retailers’ stated beliefs and actual practices when it comes to fostering innovation.
“Retail is a highly competitive industry, and the ability to innovate is essential for staying ahead of the curve,” Giri Agarwal, Incisiv Chief Insights Officer said in a press release. “Our research shows that there is a significant opportunity for retailers to improve their innovation capabilities and, in turn, drive better business performance.”
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