Deloitte - Global Powers of Retailing 2023

Deloitte's Global Powers of Retailing 2023 report predicts a potential reversal or stabilization of some of the events that characterized 2022, such as a rapid increase in inflation and supply chain disruptions, while some trends are likely to persist, such as tight labor markets, geopolitical tensions, and climate change impact. The report expects a decline in inflation due to factors such as stabilizing supply chains, weakening global demand, and a decrease in commodity prices, which may lead to reduced shipping costs and increased output. Labor markets are expected to remain tight due to reduced labor force participation, COVID-19-related illnesses, and migration decline. Companies may hire to hoard labor due to fears of persistent labor shortages. The report suggests that companies may diversify their supply chains to mitigate political risk, leading to more investment in supply chain processes in Southeast Asia, India, Central Europe, and Mexico.