Retailers are quick to suffer the effects of downturns in the overall economy but often slow
to bounce back, according to McKinsey research.
Moving quickly to minimize performance deterioration is therefore important—but raises the
question of how to choose from the wide variety of potential, short-term priorities.
A tough self-assessment, combined with a hard-nosed scan of a retailer’s external
environment, can be invaluable in helping retailers decide where to focus.
For retailers operating with decent financial strength in reasonably attractive markets,
investing for future growth, rather than hunkering down to minimize losses, often yields the
best long-term results.