Cyber and data risks are what retailers are most concerned about in the next 12 months, according to new research by Barclays Corporate Banking and Retail Economics.
Of the UK retailers surveyed, 34% said they see cyber and data threats as the biggest risks, with 70% saying they are one of their “top three risks” over the next year.
The second largest perceived risk involves a complex regulatory environment at 52%, which includes friction around international trade and uncertainty around environmental policies in the future.
Financial concerns rounded off the top three, with 51% of respondents citing these as a concern, while operational, strategic, environmental and social, and reputational concerns completed the list of worries.
However, despite retailers being most concerned about cyber and data risks, the research showed they also view this as something they can feel confident about managing due to investment in technology to safeguard operations.
Of those surveyed, 81% of retailers said the business is where it needs to be or ahead of the competition in terms of cybersecurity issues such as ransomware, malware attacks, network security or fraudulent attacks.
Barclays head of retail and wholesale Karen Johnson said: “Investing in technology is a critical component of building a resilient, future-proof business model for retailers.
“There’s a clear recognition of needing to invest in people, build strong supply chains, and improve crisis management capabilities in an increasingly uncertain geo-political environment”.
Gen-AI hype
The research also highlighted mixed views on generative artificial intelligence (Gen-AI) and whether it is more of a risk or an opportunity, with 41% viewing it as an opportunity, 37% as a risk and 23% saying it was too early to tell.
Retail Economics chief executive Richard Lim said: “The retail industry continues to face successive waves of disruption. In just the last few years, businesses have emerged from a global pandemic to face the worst cost-of-living crisis for a generation, all while technology has evolved at an astonishing pace.
“Gen-AI is the new buzzword in the industry, but many are struggling to grapple with what this means for their business and the future.
“It’s a huge credit to those who have continued to thrive and it shows a resilient industry built on solid foundations. However, this should not be taken for granted.
“While retailers may feel prepared to tackle today’s rising threat of cybercrime, they need to remain alert and seize the many opportunities emerging on the horizon.”
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