European brands and retailers are under considerable economic pressures. However, they do expect the economic climate to improve, for which they are preparing.
That is the finding of Salesforce in a recent survey. European companies are struggling mainly due to higher operating costs, such as higher energy prices, and reduced consumer demand due to high inflation.
Less than half of the respondents have a positive profit forecast for this year. In particular, respondents from Belgium, Norway and the UK have low expectations for sales in 2023.
Adapting to circumstances
Companies are however adapting to changing circumstances, the survey concludes, mainly by improving store environments and customer experience. Many retailers are hiring more staff and investing in mobile payment points in their stores.
In addition, they are adjusting their portfolios. New services are also being introduced. Examples include services in the areas of health, logistics and finance.
Fortunately, most respondents are positive about expectations for 2024. About 78 percent say they expect economic conditions and thus sales to improve next year. Naturally, they are already preparing for this by laying the groundwork for more expanding operations now.
The emphasis in the next 18 months here will be on improving efficiency with the help of technology. Consider upgrading technology capabilities for marketing, customer service and supply chains. These include investments in AI, data and CRM technology for marketing and supply chain operations.