Retail executives are worried about higher costs.

That’s according to KPMG’s latest retail executive survey in which the executives ranked inflation as the most significant concern, with the top three challenges being

increased operating costs (80%), increased product input costs (75%) and eroded margins (50%). 

The survey found that retail executives’ response to inflation has changed compared to actions they took in 2022. In 2023, 84% plan to find cost efficiencies in other ways and 67% plan to renegotiate purchasing agreements, 67%. The change was passing on additional costs to consumers via price increases, down 16% from last year to 56%.

Read more on Chain Store Age here.