1、Sustainability Digitalization Skills TRANSFORMING THE EU RETAIL&WHOLESALE SECTOR2Bartosz Jesse Partner,McKinseyAlessa Perotti Associate,McKinseyJean-Albert Nyssens Former Chief Economist,EuroCommerceBeatriz Rastrollo Associate Partner,McKinseyAnna Schrum Engagement Manager,McKinseyChristel Delberghe

2、 Director General,EuroCommerceClemence Corbiere Associate,McKinseyDaniel Lubli Senior Partner,McKinseyFrancisco Loureiro Business Analyst,McKinseyFranck Laizet Senior Partner,McKinsey Virginia Nuez Associate,McKinseyKey authorsWe thank the following people for their contributions to the report:Core

3、teamAndreas Ess,Angelika Reich,Anita Balchandani,Antje Gerstein,Arnaud Tournesac,Astrid Van Parys,Bassel Berjaoui,Bertrand Tison,Christiaan Boiten,Clara Salarich,Cornelius Grupen,Cyrielle Villepelet,Daniel Nordigaarden,Elen Guedes,Els Bedert,Felipe Medina Martin,Giuseppe Brambilla,Gregor Wolf,Guido

4、Hoepfner,Gurneet Singh Dandona,Hlne Hotellier,Henrik Becker,Ignacio Garcia Magarzo,Ignacio Marcos,Ilya Bruggeman,Isabelle Senand,Isoke Eridani,Ivonne Bollow,Jacques Creyssel,James Waterworth,Jean-Denis Deweine,Jennifer Busch,Jonatan Janmark,Jos Brito,Jose Maria Gallego,Julia Bntig,Julia Spielvogel,K

5、atharina Steffen-Stewart,Knut Alicke,Leena Whittaker,Malte Hans,Marcus Keutel,Martina Grnwall,Michael Alber,Milena Panagiopoulou,Nick Lakin,Nikola Jakic,Olaf Roik,Patricia Hoogstraaten,Philippe Diez,Raoul Dubeauclard,Raphael Speich,Sebastian Gatzer,Simon Bills,Thibault Larger,Tim Vroman,Tomas Naucle

6、r,Valia Aranitis,Vassilis Korkidis,and Veit Bckers.Ricardo Ferreira Engagement Manager,McKinseyLeena WhittakerDirector of Competitiveness,EuroCommerceSustainability Digitalization Skills Transforming the EU retail&wholesale sectorFor questions on the report or further discussions,please contact:McKi

7、nsey_Consumer_P3IntroductionSustainabilityDigitalizationSkills and talentGlossary0102030405ContentsSustainability Digitalization Skills Transforming the EU retail&wholesale sector4Digitalisation Sustainability Skills Transforming the EU retail&wholesale sector01INTRODUCTIONThe retail andwholesale in

8、dustryis in the midst oftransformative change.5Digitalisation Sustainability Skills Transforming the EU retail&wholesale sectorINTRODUCTION6Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorThe retail and wholesale industry is a key economic sector in the European Union

9、(EU).It comprises nearly 5million enterprises,about one-fifth of all companies registered in the EU.Retailers and wholesalers employ more people than any other private sector in the EUabout 26million or 13percent of the workforce.Collectively,these companies meet roughly one-third of total household

10、 consumption needs in the EU,generating annual revenue close to 7 trillion.1 The sector is in the midst of an accelerated transformation.Consumer demands are changing,and megatrends such as the growth of e-commerce,the need to decarbonize the economy,and an aging population pose threats to current b

11、usiness modelsand provide opportunities for growth.To seize these and other opportunities,retailers and wholesalers must invest in three areas through 2030:sustainability,digitalization,and,skills and talent.Bold moves in all three areas will bring benefits for 1 Eurostat panies,consumers,suppliers,

12、and the overall EU economy.Sustainability.The sector needs to play its part in decarbonizing the economy to meet the targets of the Paris Agreement on climate change.The value chain contributes about 40 percent of overall EU greenhouse gas(GHG)emissions,less than 5percent directly from the sectors o

13、wn operations and about 95 percent from other activities up and down the value chain(for example,farming,manufacturing,and transportation).Digitalization.Digital interactions are the norm and the doubling of the share of e-commerce(from 15to 30 percent by 2030)is expected to drive 90 percent of the

14、sectors growth.Eight hundred billion gigabytes of customer data were generated in 2021 across the world.Using this data for advanced analytics and artificial intelligence,together with the high potential for automation,will help companies maximize value creation and technological advances will make

15、adoption easier.Skills and talent.As the largest private-sector employer in the EU,the sector can drive upskilling and reskilling of the current workforce and improve employee productivity.By transforming in these three areas,retailers and wholesalers will be able to increase their resilience,fulfil

16、l their social and environmental missions,and unlock new business opportunities beyond the traditional trade.They may attract and retain talent more easily,and their employees may benefit from more training and lifelong professional development.Consumers could benefit as well.The transformation coul

17、d give them more choices and convenience,as well as enable them to take on more responsibility for the planet.Society across the EU and around the world could benefit as the sector curbs GHG emissions and helps protect the land,water,biodiversity,and health and 7safety of communities.Overall,the tri

18、ple transformation allows the sector to move toward more efficient,robust,and sustainable business models.To make the triple transformation happen,retailers and wholesalers will have to increase their annual investments substantially.According to McKinsey modeling,companies across all retail and who

19、lesale subsectors will need to invest an additional 0.8 to 1.6percent of their revenues till 2030 on average.That equals an industry total of 315billion if companies set themselves less ambitious targets(the conservative scenario)or 600billion if the sector takes on more commitments(the ambitious sc

20、enario).SMEs account for about 10 percent(35 billion to 60billion)of the total.That equals about one-fourth of the sectors EBITDA margin,a considerable share of revenues,in a low-margin industry.EBITDA margins are typically 4 to 6percent in food retail and 4 to 10percent in nonfood retail.The wholes

21、ale sector has even lower EBITDA margins.From a global perspective,European retailers and wholesalers invest less than other players in other regions,as shown in Exhibit 1.The investment gap(3.6 percent in the EU compared to 6.7 percent in North America for large companies)could become a liability f

22、or European players as competition is increasingly global in the digital age.INTRODUCTIONSustainability Digitalization Skills Transforming the EU retail&wholesale sector3.6%North America6.7%Europe1.9x4.56.0%2.1%Leading pure players3.3%North AmericaEurope1.5x23xTotal investment level1Total IT spendin

23、g21.Includes total capital expenditures and IT operating expenditures.2.Includes IT operating and capital expenditures.Source:Company financial reports;McKinsey benchmark on IT spendingExhibit 1:European retailers and wholesalers invest less than other players.Percent of revenues8Sustainability Digi

24、talization Skills Transforming the EU retail&wholesale sectorFurther challenges,such as the COVID-19 pandemic,supply-chain disruptions,the war in Ukraine,record inflation,and soaring energy prices are causing many players to defer investments to protect profitability.In the current economy,increasin

25、g consumer prices to offset the cost of investments is widely considered difficult.Retailers and wholesalers therefore need to find ways to transform the sector in a way that balances short and long-term goals.Investing in energy efficient equipment,for example,can help reduce both GHG emissions and

26、 operating costs.While retailers and wholesalers can accomplish a lot on their own,collaboration across the value chain and external support will be key to accelerate the pace of the effort and ensure sufficient scale.If suitable support mechanisms and policy measures are put into place,retailers an

27、d wholesalers can make the necessary investments in sustainability,digitalization,and skills and talent and implement the required long-term changes.This report,prepared by McKinsey and EuroCommerce,in collaboration with EuroCommerces members,outlines the sectors ambitions for 2030 on sustainability

28、,digitalization,and skills and talent.It presents a consolidated view of the changes retailers and wholesalers could make,including investments that might facilitate the triple transformation.It also discusses the challenges the sector faces and the support it may need.The analyses and potential pat

29、hs forward presented in this report are meant to address the needs of all five million of the EUs registered enterprises,spanning all business models,most of the industrys subsectors,and companies of all sizes,from large corporations to SMEs(from traditional mom-and-pop stores to franchisee stores).

30、Less than 1 percent of those companies are large,and most operate in one country only,or in a limited number of countries.All of the remaining companies are SMEs,only 8 percent of which have ten or more employees.That said,the required actions will differ,especially between larger and smaller player

31、s.The retail and wholesale sector is important to the European Unionand it will have to invest to keep pace in a dynamic global market.”THE TRIPLE TRANSFORMATION SURVEYAs part of this report,McKinsey and EuroCommerce surveyed 24 companies,including some of the largest retailers and wholesalers acros

32、s the various subsectors in the EU.The survey gathered insights on the maturity level of companies across the three transformation areas sustainability,digitalization,and skills and talentas well as ambitions and future needs by 2030.INTRODUCTION9INTRODUCTIONSustainability Digitalization Skills Tran

33、sforming the EU retail&wholesale sectorThe sector is competitive and growing slowly,especially in Western Europe,as markets are mature and population growth is stagnating.In most countries,retail and wholesale have been growing roughly in line with inflation.Growth rates in Central and Eastern Europ

34、e were slightly higher,due to rising purchasing power in those economies.With the high inflation rates across the EU and soaring energy prices,retailers are seeing declining volumes especially in the nonfood categories,as consumers disposable incomes are declining.Helping all players transform will

35、require a concerted effort from stakeholdersfrom farmers and primary manufacturers to suppliers,entrepreneurs,and educational institutions.In the right economic and regulatory environment,retailers and wholesalers could become a driving force for the entire European economy and help the EU achieve t

36、he objectives of the Green Deal,Digital Decade,European Skills Agenda,and other initiatives.SCENARIOSTwo scenarios were assessed to estimate the potential cost of the triple transformation for the EU retail and wholesale sector.In the more ambitious scenario,the total cost(cash-out)for retailers and

37、 wholesalers will come to 600 billion by 2030(split into about 60 billion for SMEs and 540 billion for large companies).In a second,more conservative scenario with less ambitious targets,the total investment still amounts to 315 billion(split into 35billion for SMEs and 280billion for large companie

38、s).In either scenario,large companies stand to shoulder about 90 percent of the total investment,while about 10 percent could fall to SMEs.The scenarios are detailed in the subsequent chapters.10Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorFOCUS OF INVESTMENTS THRO

39、UGH 2030Investments will be required in three areas(see Exhibit 2):The sustainability transformation.An ambitious investment of 335 billion,or a more conservative investment of 135 billion over eight years will help the sector move toward net-zero operations across its value chains,shift to more sus

40、tainable assortments within its range of private-label and branded products,and create more circular business models to reduce waste and costs as well as create new revenue streams.Retailers and wholesalers can help reduce Scope 3 emissions by making sustainable options easily accessible to consumer

41、s and providing transparency on GHG emissions and other aspects of sustainability.To move the needle on Scope 3 emissions,retailers and wholesalers can also work closely and in partnership with their supply-chain partners,including farmers.The digital transformation.An ambitious investment of 230bil

42、lion,or a more conservative investment of 155billion over eight years could enable the sector to evolve into a truly omnichannel industry that provides a seamless experience for customers,boosts automation across the value chain,scales up advanced analytics to drive growth and operational efficiency

43、,and modernizes IT.The skills and talent transformation.Retailers and wholesalers are already training some ten million people on the job every year.2 Further investments totaling 25 billion(conservative scenario)or 35billion(ambitious scenario)will enable the other two transformations and help expa

44、nd apprenticeship programs and implement the Pact for Skills.Smaller enterprises may take advantage of public programs and seek the support of the private sector to augment their investments in skills.2 Triple Transformation Survey;company interviews.INTRODUCTION11Exhibit 2:155230 bn135335 bn2535 bn

45、315600 bnDigitalizationSustainabilitySkills and talent1.Figures related to the total retail and wholesale sector adjusted to reflect the relevant scope of action.Activities excluded from the analysis are all types of agents and distributors;wholesale solid,liquid,and gaseous fuels and related produc

46、ts;wholesale pharmaceutical goods;and wholesale chemical products.2.Capital expenditures and IT operating expenditures for EU retailers and wholesalers.Source:McKinsey analysis0.40.6%3.6%-0.1%4.45.2%0.30.9%+0.81.6 ppTodaysinvestment level2Requiredinvestment levelEach of the three transformations wil

47、l require additional investments through 2030.Cumulative investment 202330 and a share of the sectors total annual revenue1 INTRODUCTIONSustainability Digitalization Skills Transforming the EU retail&wholesale sector02SUSTAINABILITYThe sustainability transformation will be an opportunity for the sec

48、tor,as well as for consumers,suppliers,and the EU overall.Key takeaways1.Investing up to 335 billion until 2030 can prepare the sector for green growth.Key actions include net-zero operations,sustainable offerings,and circularity and waste management.2.If the sector takes the opportunity,it could re

49、duce Scope1 and 2 GHG emissions by up to 90percent by 2030.3.Working with their value chain partners,retailers and wholesalers can drive sustainability and Scope3 decarbonization to improve resource efficiency,biodiversity,fair pay,and nudge consumers toward healthier,sustainable choices.141 McKinse

50、y analysis based on data from CDP;industry studies.2 McKinsey analysis based on data from CDP;industry studies.The EU has set a target to cut GHG emissions by 55 percent by 2030 and reach net zero by 2050.To achieve rapid change at scale and make a real difference in the fight against climate change

51、,the sector would need to invest up to 335 if it is more ambitious,or 135 billion if it is more conservative,in three action areas:net-zero operations,sustainable offerings,and circularity and waste management.SMEs would have to invest 10billion to 25 billion.Large companies would have to invest 125

52、 billion to 310 billion.This is equivalent to an incremental annual investment of 0.3 to 0.9 percent of revenue.The sustainability transformation may prove to be an opportunity for the sector,as well as for consumers,suppliers who decide to act early on,and the EU overall.1.The status quoEuropean re

53、tailers and wholesalers and their value chains account directly and indirectly for about 40 percent of all GHG emissions in the EU.1 Less than 5 percent of the sectors total emissions are a direct result of retail operations(Scopes 1 and 2),where the majority of emissions stem from vehicle fleets,re

54、frigeration,and electricity purchased by retailers.More than 95percent of GHG emissions within the retail and wholesale value chain are Scope 3 emissions.2 These include upstream emissions that occur during the production of the goods sold by retailers and wholesalers,especially in primary productio

55、n like agriculture,and downstream emissions that occur during the consumption and use of the sold goods.Beyond decarbonization,the sector also has a significant impact on other dimensions of sustainability.For example,the food,fashion,and furniture subsectors currently account for a large part of la

56、nd use and therefore contribute to biodiversity loss,and the food,fashion,and consumer electronics subsectors contribute significantly to packaging and product waste generation.With a sizeable workforce directly employed in retail and wholesale and in the upstream value chain,the sector also has a s

57、ignificant impact on livelihoods.Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorSUSTAINABILITY15Food,home improvement,and fashion and apparel have the largest contributions to EU retail and wholesale GHG emissions.Exhibit 1:2.The transformationThere is growing pressu

58、re from all sides to accelerate the sustainability transformation in retail and wholesale from consumers,investors,employees,regulators,and NGOs.NGOs have been increasingly outspoken when it comes to exposing what they see as wrongdoings and calling companies to account,while consumers increasingly

59、demand sustainable optionseither due to direct concerns about the effect of less-sustainable practices on their health or due to a growing awareness of 3“Understanding the consumers of the future,”forthcoming on McK.4 NYU Stern Sustainable Market Share Index 2021,https:/www.stern.nyu.edu/sites/defau

60、lt/files/assets/documents/FINAL%202021%20CSB%20Practice%20Forum%20website_0.pdf 5 https:/www.worklife.news/talent/how-sustainability-has-become-an-advantage-in-the-talent-war-but-candidates-arent-fooled-by-greenwashing-say-experts/6 https:/ec.europa.eu/clima/eu-action/european-green-deal/european-cl

61、imate-law_en the limited resources and vulnerability of the world they live in.According to the McKinsey Conscious Consumer Sentiment Survey,3 37 percent of European consumers care(deeply)about sustainability.Products that are marketed as sustainable outgrow the market average by a factor of three.4

62、 At the same time,more and more investors are adopting ESG criteria and channeling capital to sustainable companies.Sustainability also matters in the race for talent.Employers that are perceived as sustainable have a better chance of attracting,retaining,and inspiring purpose-driven people.5On the

63、regulatory front,the UN has adopted SDGs and the EU has set ambitious decarbonization goals.The later include reducing GHG emissions by 55 percent by 2030(relative to 1990 emission levels)and achieving net-zero GHG emissions by 2050(see insert).6 These targets are in line with the Paris Agreement,wh

64、ich seeks to limit global warming to well below 2degrees,ideally 1.5 degrees(relative to preindustrial levels).It is expected that Exhibit 1Food,home improvement,and fashion and apparel have the largest contributionsto EU retail and wholesale GHG emissions.Source:McKinsey CatalystZero;CDP;industry s

65、tudiesNote:Figures may not sum to 100%,because of rounding.815Scope 3 upstream,e.g.,manufacturingScope 3 downstream,e.g.,usage by consumers124Other52%44%Personal care10%54%4%Furniture28%3%63%296Scope 1 and 281%18%Consumer electronics61%22236%Fashion and apparel3%Home improvement73%77%3%24%9019%35%70

66、%4%82FoodTotal GHG emissionsMtCO2e20%3%2%2%5%0.2%X%Share of total EU GHG emissions7%SUSTAINABILITYSustainability Digitalization Skills Transforming the EU retail&wholesale sector167 Expert interviews;company interviews.8 Based on McKinsey analysis using SBTi data.Reference points included per square

67、 meter,per unit of value added,and per kilogram of raw material purchased.9 https:/ec.europa.eu/commission/presscorner/detail/en/ip_21_5916;https:/ec.europa.eu/info/business-economy-euro/doing-business-eu/corporate-sustainabili-ty-due-diligence_en the sector will be required to ensure compliance wit

68、h reduction targets both for direct(Scopes 1 and 2)and indirect(Scope 3)GHG emissions.7 So far,33 percent of the 50 leading European retailers and wholesalers have set science-based decarbonization targets.Of these,75 percent have set Scope 1 and 2 reduction targets that are in line with or exceed t

69、he anticipated average EU target.Regarding Scope 3 GHG emissions,there is more variance.At the time of writing,the Scope 3 reduction targets adopted by Europes top 50 retailers and wholesalers range from 10 to 70 percent by 2030,with varying reference points.8 Even if retailers and wholesalers were

70、to achieve net zero on Scopes 1 and 2,the Scope 3 targets set by retailers and wholesalers so far will not be sufficient to reach the overall 55 percent reduction target of the EU.Retailers and wholesalers need to take more decisive action on decarbonization,and increase their collaboration with oth

71、er players in the ecosystem,especially suppliers.While decarbonization is a significant and pressing challenge,it is only one aspect of sustainability.Other benefits of sustainable practices include improved resource efficiency,biodiversity,livelihoods,and health(see box“Multiple facets of sustainab

72、ility”).Many retailers and wholesalers are already pursuing projects and initiatives to address these aspects.That said,new regulations regarding biodiversity,worker livelihoods,and healthy food products will likely be introduced into Europe soon.These include regulation on deforestation-free produc

73、ts and requirements for sustainability due diligence.9 CARBON NEUTRALITY VERSUS NET ZEROCarbon neutrality,is commonly used to refer to carbon dioxide(CO2)only and is often associated with the practice of offsetting emissions,rather than reducing them.In contrast,net zero is a more comprehensive,more

74、 ambitious standard.Net zero focuses on rapid,real emissions cuts of all GHG emissions(including,not only CO2,but also methane,nitrous oxide,and other GHGs).It requires companies to set quantified targets(for example,halving emissions by 2030)for their entire value chains,including indirect emission

75、s(Scopes 1,2,and 3).For details,see https:/sciencebasedtargets.org/net-zero.Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorSUSTAINABILITYSource:The Food and Land Use Coalition;The Rockefeller Foundation;Sustainable Food Trust;PerottiFor every euro spent on food,there

76、 is an estimated0.802.25 in external costsCost to society per spent on food,HealthEnvironmentEconomyAnimal welfareLivelihoodsOverall0.401.100.0050.050.150.300.900.050.100.802.2517Retailers and wholesalers hold a unique position in their value chains as the link between producers and consumers.This p

77、osition gives them the opportunity to advance their sectors sustainability.Retailers are well positioned to nudge consumers to consider more sustainable options,help increase transparency and coordination along the value chain,and make producers aware of the importance of a holistic sustainability t

78、ransformation.In response to growing consumer demand,many retailers are already making more shelf space available for sustainable options.10 They are in the drivers seat and do not have to wait for suppliers or other players to drive assortment sustainability.This is because many retailers control a

79、 large range of private-label products.Of course this is more limited for SMEs.10 https:/hbr.org/2019/06/research-actually-consumers-do-buy-sustainable-productsThe sustainability transformation is an opportunity for retailers to differentiate their assortments,tap into growing green value pools,and

80、develop new circular business models.In many cases,emissions reduction brings cost savings or new revenue streams.It is time for retailers and wholesalers to follow the example of the green pioneers in their midst and switch from playing defence(risk mitigation)to playing offense(value creation).If

81、they act fast and decisively,retailers and wholesalers will be able to best combine whats good for the planet with whats good for their businesses.The transformation could be significantly accelerated through harmonized standards across the value chain and simplified rules.This would support not onl

82、y the European retail and wholesale sector in its efforts to promote sustainability in the value chain but also the sustainability of the European economy as a whole.Potential developments by 2030If the sector takes the opportunity to drive the sustainability transformation,it could reduce Scope 1 a

83、nd 2 GHG emissions by up to 90 percent by 2030,be a driving force for Scope3 decarbonization,and improve circularity,efforts to promote biodiversity,and resource efficiency(for example,by increasing the plastic recycling rate to 70 percent).The sector could also continue to play an active role in nu

84、dging consumers to change their behaviors by providing clear information,expanding sustainable options,and advising them on sustainable consumption.If these efforts come to fruition,retailers and wholesalers receive the right support,and engage in cross-value-chain collaboration,the sector can help

85、to advance the wider EU sustainability agenda substantially,far beyond its own operations.MULTIPLE FACETS OF SUSTAINABILITYAccording to the McKinsey HE2AL framework for(grocery)retail,sustainability encompasses five facets:health,environment,economy,animal welfare,and livelihoods.SUSTAINABILITYSusta

86、inability Digitalization Skills Transforming the EU retail&wholesale sector18Given that 99 percent of retail and wholesale consists of SMEs,the sector should make a joint effort to provide SMEs with the information,practical know-how,and support they need to play an active role in the sustainability

87、 transformation.Trade associations are well placed to support their SME members in their efforts to manage change.3.Actions for considerationRetailers,wholesalers,and their partners can pull many levers to advance and promote sustainability in their value chains.These levers can be grouped into thre

88、e action areas(Exhibit2):net-zero operations,sustainable offerings,and circularity and waste management.Taking decisive action in these areas can bring multiple benefits for the entire sector:compliance with future regulations,increased cost efficiency,reduced negative impact of any potential carbon

89、 tax introduced,lessened impact of overall energy price volatility,improved supply-chain resilience,competitive differentiation for first movers who satisfy customers growing demand for sustainable choices,and the opportunity to make the sector more attractive for job seekers.Many levers require inv

90、estment from retailers and wholesalers.Others will likely be cost neutral but necessitate commercial or operational changes.And,while many levers are under the direct control of retailers and wholesalers,others require collaboration with upstream and downstream value-chain partners.Other influential

91、 players in the value chain,such as manufacturers and farmers,also need to act.More generally,there are some structural factors that might inhibit or delay the implementation of certain changes,including scarcity of relevant technology,overregulation,difficulties with financing,a lack of infrastruct

92、ure,and insufficient consumer education about sustainability.The more stakeholders cooperate across national borders on these factors,the faster and more effective the transition to a sustainable sector will be.It is estimated that the sector needs to invest a total additional 135 billion to 335 bil

93、lion(cash-out)for the sustainability transformation by 2030,equivalent to 0.3 to 0.9 percent of revenue.SCENARIOSTwo different scenarios were assessed to estimate the potential cost of the sustainability transformation for the EU retail and wholesale sector.In the first,more conservative scenario,EU

94、 retail and wholesale achieve the required reduction of Scope 1 and 2 emissions by 2030 on average,but do not take a more active role in the sustainability transformation.In the second,significantly more ambitious scenario,EU retail and wholesale play a leading role in the sustainability transformat

95、ion and contribute to the EU sustainability agenda as outlined above.Specifically,the scenarios are based on the following assumptions:Conservative.Assumes a focus on a 55 percent reduction of Scope 1 and 2 emissions,with limited efforts to reduce Scope 3 emissions.Ambitious.Assumes the sector targe

96、ts reducing Scope 1 and 2 emissions by 80 to 90 percent(exceeding expected Green Deal requirements),with bold efforts to substantially reduce Scope 3 emissions.Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorIf they act fast and decisively,retailers and wholesalers wi

97、ll be able to best combine whats good for the planet with whats good for their business.”SUSTAINABILITY19The sustainability transformation is a win-win-win opportunity for the sector,the EU,and society.Exhibit 2:Net-zero operationsNet-zero operations is the action area that is under the direct contr

98、ol of retailers and wholesalers.Net-zero operations is made up of four topics:renewable energy,net-zero stores and warehouses,net-zero fleets,and sustainable manufacturing(for vertically integrated retailers and wholesalers).Addressing these topics can help reduce Scope 1 and 2 GHG emissions.Althoug

99、h these emissions represent less than 5 percent of the total GHG emissions attributable to the sector,both large companies and SMEs need to adopt net-zero operations to achieve their Scope 1 and 2 decarbonization targets and advance the sustainability of the ecosystem as a whole.At a cost of 120 bil

100、lion to 300 billion,net-zero operations could enable retailers and wholesalers to reduce Scope 1 and 2 GHG emissions by 50 to 90 percent by 2030.Given the vast number of trucks,stores,and distribution centers,optimizing operations is likely to be the costliest task for retailers and wholesalers.In e

101、very neighborhood in every town,there is probably a store that could be optimized.However,while making operational changes would require substantial investment,most levers have a positive net present value(NPV)or are at least NPV neutral.This is why most retailers and wholesalers will likely want to

102、 decisively decarbonize their own operations beyond what some are already doing.Renewable energyEnergyin terms of electricity and heatis a topic that cuts across all operational topics,from stores and warehouses to fleets and manufacturing.Retailers can improve the energy efficiency of their operati

103、ons and switch to renewable sources where available,thereby helping the EU drive the transition to green energy.Specifically,they could use existing assets to produce renewable energy.Those who own stores and warehouses could install solar panels on the roofs to generate electricity,either for their

104、 own operations or for shoppers to charge electric vehicles(EVs)in the parking lot or as a new source of revenues;in some countries,the installation of a certain number of charging stations is already required by regulation.Additional cash-out required,billion,cumulative 20233053541020%of

105、 the sectors total annual revenues11.Based on 2019 retail and wholesale market size.2.Includes fleet decarbonization of retailer and wholesalers own and third-party fleets and charging infrastructure3.For vertically integrated players.4.Includes investments in retailer and wholesalers own operations

106、 as well as establishing additional collection/sorting/recycling infrastructure for plastic packaging,fashion and apparel,consumer electronics,and furniture circularity.Net-zero fleets2Improved manufacturing3 sustainabilityIncrease sustainability of assortmentIncrease circularity of packaging usedEn

107、d-to-end waste reductionTotal cash-out requiredIncrease circularity of products offeredCircularity and wastemanagementDesign and source private labels for sustainabilityNet-zero stores and warehousesNet-zero operations(Scope 1 and 2)Part of suppliers business as usualNot quantifiedNot quantifiedSust

108、ainable offering(Scope 3)0.30.8%0.30.9%0.1%Source:McKinsey analysisRenewable energyIncluded below70190SUSTAINABILITYSustainability Digitalization Skills Transforming the EU retail&wholesale sector20Switching to green energy providers may be difficult because some EU countries still rely primarily on

109、 nonrenewable energy sources,such as coal.For retailers operating in these countries,self-generation of renewable energy(including heat)with solar panels and heat pumps may be especially important,both to promote energy independence and reduce their carbon footprints;in todays times of soaring energ

110、y prices,it might also be an economic imperative.Retailers and wholesalers can leverage,for example,virtual Power Purchase Agreements(PPAs)to aggregate virtually the load of a lot of small suppliers and drive scope 3 reduction this way.An American retailer has been the first company in the world to

111、launch such programs.Net-zero energy is relevant to the next three topics,and the cost of adoption is reflected there.Net-zero stores and warehousesIn the food subsector,the main drivers of store GHG emissions are refrigeration and lighting.In the nonfood subsector,the main drivers of store GHG emis

112、sions are lighting,heating,ventilation,and air conditioning.At a cost of 20 billion to 50 billion,decarbonizing existing stores could reduce Scope 2 GHG emissions by 30 to 50 percent.At the same time,it may also help reduce Scope 1 GHG hydrofluorocarbon emissions from old cooling appliances.Some ret

113、ailers already apply digital solutions,like building management software(BMS)and remote digital management,to optimize and control energy consumption in their stores.Comparing store consumption remotely by looking at load profiles can help detect anomalies.Initiatives targeting lighting,refrigeratio

114、n(if applicable),heating,ventilation,and air conditioning,for example,could help reduce energy consumption to best-in-class levels(30 to 50 percent below the current EU average).At a cost of 50 billion to 140 billion,decarbonizing warehouses would address 20 to 40 percent of Scope2 GHG emissions and

115、 potentially some Scope 3 GHG emissions,from warehouses owned and operated by third parties.Decarbonizing warehouses may also help reduce some Scope 1 hydrofluorocarbon emissions from old cooling appliances.While making operational changes would require substantial investment,most levers have a posi

116、tive net present value(NPV)or are at least NPV neutral.”Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorSUSTAINABILITYExhibit 3Electric vehicles will reach total cost of ownership(TCO)parity with diesel across segments by 2025;later for hydrogen.Average(TCO)in expecte

117、d case adoption scenario2022 UPDATESource:McKinsey Center for Future Mobility;McKinsey Energy Insights Global Energy Perspective 1.Weight class definitions:Heavy-duty truck 16t,medium-duty truck:7.516t,light commercial vehicle:97%virgin feedstock:Plastic/synthetic(62%)Cotton(24%)Other(14%)651Mtannua

118、l fiber production for clothing Use73%in landfills or incinerated2%recycled feedstockfrom other industries250 employees)Medium(50249 employees)Small(1049 employees)Micro(10 employees)Corporate/other functionsSupply chain and logisticsStore operationsEmployees by subsector PercentEmployees by company

119、 size PercentEmployees by function Percent608010201020Food retail,SMEs,and store operations account for the largest share of employees by subsector,company size,and function respectively.SKILLS AND TALENTSustainability Digitalization Skills Transforming the EU retail&wholesale sector522.The transfor

120、mation Evolving consumer expectations and market dynamics are accelerating change in the retail and wholesale sector.The sector faces three main challenges:increasing productivity,driving the evolution of skills and roles,and becoming a magnet for talent.Increasing productivity is imperative.This im

121、perative is driven by the need to accelerate decision making and time to market to meet customer needs,cope with increased competition,find funding for digital and sustainability transformations,identify alternative growth avenues,and deal with pressures on revenue growthnow being amplified by infla

122、tion and consumers rising price sensitivity.Average productivity in the sector could rise by about 2.1 to 2.6 percent annually as it adopts more digital tools,implements more advanced analytics use cases,and upskills talent across all functions.5 In certain subsectors,5 McKinsey analysis.6 https:/ s

123、uch as apparel,the ongoing shift to e-commerce will likely accelerate and further drive productivity.The associated decline in selling space may lead to a slight reduction in demand for shop floor roles.Demand is expected to rise for other roles,such as roles in last-mile delivery and logistics.The

124、evolution of skills and roles is being driven by new commerce.Relevant forces include the accelerating growth of omnichannel,which refers to using all available channels as part of a customer journey;6 the evolving role of stores as points of contact for consumers with different needs and expectatio

125、ns;the need for more data-driven decision-making in all areas of organizations;and a shift to value-adding tasks and business intelligence as more administrative tasks are automated.In many roles,new skills may be required,such as skills in digital and analytics.New roles could emerge and become mor

126、e important,including roles for data scientists,digital marketing specialists,and user experience experts.These roles can help many companies capture the value of digital channels,advanced analytics,and automation.The race for talent will likely remain competitive.Many retailers and wholesalers may

127、need to build internal expertise and capabilities across the organization and increase employee attraction and retention.SMEs may have to outsource some skills and leverage pay-as-you-go services,thereby benefiting from the investments made by larger players.In total,the sector may need to upskill 1

128、0 to 13 million employees(equal to 40 to 50 percent of the sectors total workforce)and hire 800,000 to 1.5million new people every year through 2030.Across functions and roles,the share of employees with higher qualifications will likely increase.The magnitude of change may differ across companies,d

129、epending on their business models,channel mixes,and other factors.Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorSKILLS AND TALENT537 McKinsey analysis.8 McKinsey analysis based on data from Eurostat.SKILLS AND TALENTSustainability Digitalization Skills Transforming

130、the EU retail&wholesale sectorHOW FUNCTIONS AND ROLES COULD CHANGESTORE OPERATIONS Cashier.The increased use of self-checkout and seamless checkout,which uses a combination of sensors and cameras,could reduce the time cashiers spend at the register by up to 50 percent by 2030,7 shifting staffing nee

131、ds to free up time for new tasks.This could include customer support at self-checkout stations and picking products for online orders.Todays cashiers may need to acquire new skills and deepen existing capabilities,such as customer-assistance skills and basic knowledge of how to use digital tools,inc

132、luding self-checkout stations,digital price scanners,and smartphone apps.Sales(replenishment).The productivity of stock care and replenishment on the sales floor could rise as stores adopt robotic shelf replenishment,digital price tags,and smart fridges that check inventory and expiration dates.Staf

133、f may have more time to specialize to improve customer service and revenueby optimizing offerings,for examplebut they may also need new technical and basic analytical skills for product and revenue analysis and additional role-specific knowledge.SUPPLY CHAIN AND LOGISTICS Warehouse roles.Even in cou

134、ntries in the EU where automation readiness is high,only half of new warehouses are even semiautomated,8 suggesting high potential for productivity gains via automation,such as by using automated order picking.But even as productivity improves,the number of warehouse jobs is expected to rise as e-co

135、mmerce growth increases the need to fill orders and handle returns.People in warehouse roles may need new capabilities to make data-driven decisions;use advanced analytics,for example,for demand forecasting;and manage the transition from offline to omnichannel operations,including stock and flow man

136、agement for online stores.Transport roles.Productivity may grow as more transportation companies use analytics,automate depalletizing,and adopt autonomous guided vehicles for loading and unloading.However,the number of transport roles is rising due to the growth of e-commerce and the increasing impo

137、rtance of seamless omnichannel operations.New jobs related to last-mile delivery are expected to emerge,partly in the ranks of retailers and partly on the payrolls of third-party service providers,such as postal and delivery services.New technology,such as delivery drones,may bring new skill require

138、ments for technical maintenance and other roles.CORPORATE FUNCTIONS Category management and marketing.The total number of people in these roles is likely to grow,mainly because of the growth of the sector itself.Many skill profiles could change substantiallyfor example,more category managers may hav

139、e to adopt an omnichannel perspectiveand analytical skills may become more important in pricing recommendations,store-specific stock keeping unit(SKU)selection,vendor negotiation support,mass promotion optimization,personalized promotions,and other areas.Employees may need analytical and technical s

140、kills to understand,pressure test,and apply system-based outputs,such as for dynamic pricing,management of online traffic and conversion rates along the purchase funnel,and for e-commerce website maintenance.HR roles.While automation and analytics will likely help speed up or reduce the number of ad

141、ministrative tasks in HR,from uploading CVs to conducting online tests of candidates instead of in-person first-round interviews,the number of HR jobs in retail and wholesale is likely to increase until 2030.Potential driving factors include the need for professional strategic workforce and talent p

142、lanning and the training required to master the skill and talent transformation.To succeed in their evolving roles,HR employees may need new analytical and technical capabilitiesand to improve social and emotional skills to coach and attract diverse talent.54Becoming a magnet for talent has become c

143、ritical.Many industries are also looking for new talent to fill new roles,particularly in digital and analytics,and retail and wholesale companies will need to compete.The job vacancy rate in the retail and wholesale sector reached an all-time high of 1.8 percent in 2021,up from 1.3percent in 2020 a

144、nd 1.0 percent in 2012,reflecting the current difficulty of filling job openings across all sectors of the economy.9 To stay competitive,retailers and wholesalers can define clear plans for people and talent evolution to support business strategies.These plans could include migration schemes for rol

145、es and skills(which are plans for employees to transition into new roles)and a narrative description of the companys employee value proposition(EVP).An EVP encompasses the full set of financial and nonfinancial benefits and rewards an employee receives,such as development and growth opportunities.It

146、 should be anchored by clear,concise,and compelling answers to the key questions a prospective employee might ask:Why should I work for this company?What opportunities for growth will I have?How does this company support the causes I care about?Potential developments by 2030 By 2030,retailers and wh

147、olesalers may need to upskill 10 to 13 million employees,equal to 40 to 50 percent of the total workforce,to help them thrive in new and evolving roles while improving talent attraction and retention and raising productivity.Many companies in the sector will need to hire more highly-skilled employee

148、s than before or have to find the capabilities they need through partnerships,outsourcing,and other means.Given that 99 percent of retailers and wholesalers in the EU are SMEs,10 smaller firms will need support to gain access to information,practical know-how,and dedicated support to help upskill th

149、eir workforces.To navigate 9 Eurostat 2019.10 Eurostat 2019.11 Triple Transformation Survey,market research.these potential challenges,SMEs may need to find and use expertise from the market,for example,by outsourcing certain IT functions to external providers.Overall,the sector will likely need to

150、invest even more in people.On its current path,the sector would likely invest an estimated 50 billion to 70billion by 2030 to develop its workforce,or 1.0 to 1.5 percent of total labor costs.11 Large companies may need to invest approximately 30 percent more,and SMEs,on average,may need to more than

151、 double their budgets.Incremental investment in workforce development totaling 25 billion to 35 billion through 2030 will likely be required(15 billion to 20 billion for SMEs and 10 billion to 15 billion for large companies),or about 0.1 percent of sector revenue.Total investment,both current and in

152、cremental,could amount to 75billion to 105 billion over eight yearson top of the time and other resources already invested in on-the-job training and other informal learning,which have not been quantified.Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorSKILLS AND TALE

153、NT553.Actions for considerationPotential steps can be grouped into the following four action areas:Skilling.Providing more apprenticeships through professional vocational and educational training(VET)to prepare people for careers in the sector.Upskilling.Offering on-and off-the-job training to give

154、employees the new skills required for evolving roles.Reskilling.Providing training to give employees the skills they need to transition to new jobs within or outside the sector.Attraction and retention.Enhancing the appeal of the sector as a whole and the appeal of individual companies with sharper

155、EVPs.SkillingIn some countries,VET is a distinct professional pathway,set up separately from college or university education.In these countries,such as in Austria and Germany,VET combines on-the-job training with classroom learning(“dual education”),providing promising career and income opportunitie

156、s,particularly in commerce.This type of system is normally built on a strong social partnership between public and private players and a mutual commitment to invest in the skills of young people.VET requires substantial investment 12 http:/rebondir.fr/reconversion-formation/decathlon-ouvre-son-centr

157、e-de-formation-pour-apprentis-16062022;https:/recrutement.decathlon.fr/cfa/by the companies that provide on-the-job training,while classroom training is provided by public professional schools.This dual concept is based on the shared conviction that investing in the skills of young people is worthwh

158、ile to ensure the workforce is future ready.Like any skilling program,VET requires continuous improvement and adaptation to new skill requirements.For instance,HDE and BGA,retail and wholesale associations in Germany,have developed a new e-commerce profile in close cooperation with trade unions.This

159、 is an example of how educational innovation can help meet the evolving skills needs in a very dynamic sector.Decathlons training center for apprentices provides another example of an educational program that aims to prepare people to enter a role in retail or wholesale.The center,set up in partners

160、hip with the French national agency for professional training for adults(AFPA),provides apprentices with the qualifications necessary for the sale and repair of sports products.12 UpskillingAs roles evolve,employees may require new,cross-cutting skills,such as social and emotional competence,includi

161、ng empathy and coordination with others,learning agility,and the ability to deal with change.Function-specific skills could also be necessary,such as advanced analytics for pricing specialists,and customer servicing and technical expertise for consumer electronics sales personnel.Internal training p

162、rograms can play key roles on and off the job,as can collaboration with public or private education providers;for details,please see the box“Examples of existing upskilling programs.”Upskilling training programs will likely include a combination of remote and in-person learning.According to our Trip

163、le Transformation Survey,68 percent of large retailers and wholesalers use multiple upskilling methods todayinternal and external,in person and digital.More than three-quarters of respondents use internal online or digital platforms.The need for training providers,digital training tools,and certific

164、ation will likely growand retailers and wholesalers may need to make recurring investments in lifelong learning.The sector as a whole may need to invest a total of 25 billion to 35 billion in upskilling initiatives by 2030,which is 40 to 60 percent more than it does today.The sector as a whole may n

165、eed to invest a total of 25 billion to 35 billion in upskilling initiatives by 2030,which is 40 to 60 percent more than it does today.”SKILLS AND TALENTSustainability Digitalization Skills Transforming the EU retail&wholesale sector56EXAMPLES OF EXISTING UPSKILLING PROGRAMSUpskilling can take many f

166、orms.A few examples of the most common types include the following:Government-driven programs.Skillnet Ireland,a business support agency,is tasked with developing the workforce to enhance the competitiveness,productivity,and innovation of Irish businesses.13 Sector-driven VET.Such programs,typically

167、 part of a countrys public education system,provide young people with qualifications for work in the retail and wholesale sector,including in SMEs.VETs can be a form of upskilling as well as skilling(as is the case with the e-commerce apprenticeship programs of the retail and wholesale associations

168、HDE and BGA).14 Company training.REWE Group offers employees a range of development options,including a program that prepares store employees for manager and district manager roles.15 Cooperation with educational institutions.Carrefour Romania and the Bucharest University of Economic Studies formed

169、a strategic partnership to help employees develop skills for managerial positions,with courses in leadership,communication,digital strategy,and more.16 Scholarships or tuition support.Amazon Europes Career Choice program provides up to 8,000 per worker for professional training and tuition,helping e

170、mployees acquire skills to pursue their careers at Amazon or elsewhere.17 13 https:/www.skillnetireland.ie/14 https:/einzelhandel.de/themeninhalte/bildung/1068-karriereimhandel/3278-ausbildung-weiterbildung-und-karriere-im-einzelhandel;15 https:/rewe-group.jobs/einstieg-und-perspektiven/lehre/16 htt

171、ps:/ 17 https:/ 18 QuantHubReskillingTraining will likely be key in helping employees transition to new and different roles internally,at other companies,or outside the sector.Most reskilling programs today resemble those created for upskilling in terms of setup,structure,and stakeholders involved.E

172、mployers can help workers assess their prospects and help them acquire the skills they need to succeed in new opportunities.According to McKinsey scenario modeling,the sector may need to invest 500 million to 3 billion in reskilling initiatives through 2030.Because the challenge is substantial and a

173、 successful transformation is crucial to provide the European workforce with rewarding employment and development opportunities,retailers and wholesalers may want to cooperate with public institutions,seek public funding,and consider partnering with other sectors and public or private educational in

174、stitutions.Attraction and retentionFor some vital roles,such as data scientist roles,retailers and wholesalers are competing for talent not only with each other but also with companies in other sectors.The number of job postings for data scientists now exceeds the number of candidates by a factor of

175、 three.18 To fill gaps in these areas and retain top talent,businesses in the sector may need to sharpen or renew their EVPs.Retailers and wholesalers can distinguish themselves with flexible work models,function-specific perks,and diversity and inclusion programs,for example,for employees with disa

176、bilities.One European apparel retailer offers flexible working policies for its digital talent,allows them to choose their own devices,and sponsors their attendance at global digital forums and conferences.Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorSKILLS AND TAL

177、ENThttps:/bga.de/unsere-themen/berufsbildung/57As European retailers and wholesalers seek to optimize people development models and attract top talent,many encounter roadblocks,including limited workforce readiness and difficulties in finding,recruiting,and retaining talent.”SKILLS AND TALENTSustain

178、ability Digitalization Skills Transforming the EU retail&wholesale sector584.Roadblocks and potential solutionsAs European retailers and wholesalers seek to optimize people development models and attract top talent,many encounter roadblocks,including limited workforce readiness and difficulties in f

179、inding,recruiting,and retaining talent.These challenges could persist for years to come,and the difficulties may be even greater for the many SMEs without the time or budget to provide off-the-job training,meaning these challenges may require a dedicated approach.Examples of roadblocks,as articulate

180、d by retailers and wholesalers in working group discussions and interviews include:High attrition rate.Across the sector,the average attrition rate is 25 percent,with variation across subsectors and regions.The rate exceeds 27 percent in Central and Northern Europe,but is under 20percent in Southern

181、 and Eastern Europe.Limited workforce readiness.According to the Triple Transformation Survey,only 50percent of the current workforce in the sector is ready for the skill and talent transformation that lies ahead.Low investment in training at SMEs.While large companies invest 1.0 to 1.5 percent of t

182、heir labor costs in upskilling and reskilling,SMEs invest much less in formal training,mainly because of time and budget constraints.Entrepreneurs and employees alike may find that continuous learning is key to staying competitive in a changing marketplace.Talent scarcity.In the Triple Transformatio

183、n Survey,more than 40 percent of companies cite difficulty with finding talent with the right skills as the top barrier to successful transformations.Increasing share of employees with higher qualification levels.Many of the new roles emerging in retail and wholesale require higher qualifications th

184、an current roles.Retail and wholesale companies can sharpen their EVPs to attract and retain the highly qualified talent they need.Labor costs are likely to increase,putting additional pressure on subsectors that already operate with low margins.For example,the average EBITDA margins in grocery are

185、just 4 to 6percent.Enabling sector-specific and company-specific measures will likely be required to help the sector continue to prosper and keep providing promising opportunities for employees.Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorSKILLS AND TALENT594.1 Cro

186、ss-sector enablersThe sector will likely need to enhance or put in place the following four cross-sector enablers to clear roadblocks and ready the sector for the skill and talent transformation that lies ahead:Professional education and training systems.Professional education that prepares people f

187、or careers in retail and wholesale will likely be key to the success of the sector.VET varies across countries.In Spain and Portugal,education for positions in retail is much less formal than for positions in hospitality,where undergraduate degrees are available.Other countries have developed more f

188、ormal VET systems for retail and wholesale.In Germany,the apprenticeship model known as Ausbildung includes about 70 percent on-the-job training and 30 percent classroom education,helping more than 80,000 young people enter the retail and wholesale sector every year.19 19 https:/www.destatis.de/DE/T

189、hemen/Gesellschaft-Umwelt/Bildung-Forschung-Kultur/Berufliche-Bildung/Tabellen/liste-azubi-rangliste.html;value for 2020.SKILLS AND TALENTSustainability Digitalization Skills Transforming the EU retail&wholesale sectorSCENARIOSTwo different scenarios were assessed to estimate the potential cost of t

190、he skills and talent transformation for the EU retail and wholesale sector.In the first,more conservative scenario,the change in roles and skills(and therefore the impact in additional investments for up-/reskilling)is more moderate,resulting in the conservative scenario for sustainability and digit

191、al transformations.In the second,significantly more ambitious scenario,EU retail and wholesale will experience a more disruptive change in required roles and skills,and therefore will require higher incremental investments for up-/reskilling,resulting in the more ambitious scenarios for sustainabili

192、ty and digitalization transformations.Specifically,the scenarios are based on the following assumptions:Conservative:Incremental investments in people development for approximately 40 percent of employees,and 800,000 new jobs need to be filled yearly across the sector until 2030 Ambitious:Incrementa

193、l investments in people development for approximately 50 percent of employees,and 1,500,000 new jobs need to be filled yearly across the sector until 203060In addition to VET,higher or tertiary education may become more important for the retail and wholesale ecosystem as demand for highly skilled pe

194、rsonnel rises.Roles that require higher education include data scientists with advanced digital skills,pricing specialists with retail-and wholesale-specific skills,and cybersecurity experts.In the Netherlands,retailers cooperate closely with educational institutions to help employees earn associate

195、 and bachelors degrees.The universities of applied sciences Stenden and Avans specialize in retail undergraduate programs,creating curriculums in close collaboration with retail and wholesale companies and associations.Joint effort to make the sector more appealing to employees.To attract and retain

196、 employees,retailers and wholesalers can coordinate and cooperate with their peers.HDE,for example,runs sector-wide image campaigns to attract more young people.The advantages of working in the sector could include diversity,inclusion,flexibility,attractive tasks such as interaction with customers,a

197、nd a variety of opportunities for all profiles regardless of skills or experience,such as advanced digital training and apprenticeship for students and those at the beginning of their professional lives.Institutional and funding support.The sector could benefit from funding for internal training to

198、support workers transitions to new roles.According to our Triple Transformation Survey,55percent of large companies and 78 percent of SMEs say they do not have the funds to improve their employees skills or talent.Support for SMEs could come from public sourcesthe French government,for example,provi

199、des dedicated funding for skill development to SMEs with fewer than 50employees.Partnerships.Not all skills need to be built internally.Some companies with less resources can acquire capabilities as a service from third parties,which could help them maintain more flexible operating models.This could

200、 include digital marketing,accounting,customer relationship management,advanced IT tasks,and cybersecurity.The skills-as-a-service concept is particularly relevant for SMEs who may seek to outsource functions,but they might also need to consider the costs and potential issues,such as data privacy an

201、d security.Sustainability Digitalization Skills Transforming the EU retail&wholesale sectorThe sector could benefit from funding for internal training to support workers transitions to new roles.”SKILLS AND TALENT61Since the transition may be particularly challenging for many SMEs,they could benefit

202、 from local learning platforms for digital commerce,training,and technical support,developed in partnership with national associations or larger companies.Amazon,for example,offers SMEs free access to online training,expert advice,live events,and services through its Small Business Accelerator.20 4.

203、2 Company-specific enablersIn addition to cross-sector enablers,retailers and wholesalers may consider ramping up internal capabilities to ready their organizations for the transformation,including the following:HR resources and capabilities.Many companies still rely on short-term approaches to work

204、force management,typically based on headcount.They look for new hires only when the headcount drops below a predefined level,or when a concrete position becomes vacant.In the future,retailers and wholesalers may want to take a more proactive approach to training and recruitment.Potential considerati

205、ons include whether the HR department has the right resources and capabilities,such as strategic workforce planning.Companies can also clarify their EVPs and plan to acquire the training resources they need.New capabilities in HR can be built internally or provided by external partners,which may be

206、particularly relevant for SMEs.Technological infrastructure and tools.Retailers and wholesalers,especially larger firms,can also build or enhance technological 20 https:/www.aboutamazon.co.uk/news/small-businesses/launching-the-amazon-small-business-accelerator-a-boost-for-small-businesses-in-the-uk

207、 infrastructure and tools as needed to deploy training programs at scale,such as online learning platforms.The retail and wholesale sector will likely remain one of the biggest employers in the EU and continue to play a key role in society with its diverse and inclusive character.The sector will sta

208、y relevant because it is where millions of Europeans start careers and lifelong learning journeys.While retailers and wholesalers are already investing heavily in workforce development,they may have to invest an additional 25 billion to 35 billion in upskilling and reskilling through 2030 to transfo

209、rm the workforce and seize the opportunities that lie ahead.They may also need to forge new partnerships with their peers,trade associations,public stakeholders,and training providers.SKILLS AND TALENTSustainability Digitalization Skills Transforming the EU retail&wholesale sector6205GLOSSARY63From

210、introductionEBITDA:earnings before interest,taxes,depreciation,and amortization GHG:greenhouse gases SME:small-or medium-sized enterprise(i.e.,fewer than 250 employees)From sustainability chapterCAPEX:capital expenditure CPG:consumer packaged goods ESG:environmental,social,and governance EV:electric

211、 vehicle KPI:key performance indicator MACC:marginal abatement cost curve NGO:nongovernmental organization NPV:net present value PET:polyethylene terephthalate RA:regenerative agriculture Scope 1:Direct emissions from owned and controlled resources Scope 2:Indirect emissions from the generation of p

212、urchased energy Scope 3:All indirect emissions (not included in scope 2)that occur in the value chain of the reporting company,including both upstream and downstream emissions SDGs:Sustainable Development GoalsFrom digitalization chapterAI:artificial intelligence API:application programming interfac

213、esoftware that allows applications to communicate with each other EBIT:earnings before interest and taxes Opex:operational expenditures RFID:radio-frequency identification SaaS:software as a service SKU:stock keeping unitFrom skills and talent chapterAFPA:French national agency for adult vocational

214、training EVP:employer value proposition FTE:full-time equivalent VET:vocational and educational training GLOSSARYSustainability Digitalization Skills Transforming the EU retail&wholesale sectorTRANSFORMING THE EU RETAIL&WHOLESALE SECTORSustainability Digitalization SkillsCopyright McKinsey&CompanyAll rights reservedOctober eurocommerce.eu