Private equity firms have been behind the buyouts of some of the most well-known names in the retail sector and invested huge sums of money to buy a retailer, take it private, turnaround the business only to sell it later at a profit.
While some workout, others take longer. For instance, Walmart to close the gap between itself and Amazon, bought once-popular Jet.com for USD3.3 billion, a business which Walmart has since retired. Walmart’s eCommerce business lost USD2 billion in 2019 indicating how tough it is to maintain profitability in this area.
However, 2020 forced changes upon everyone. How we work and where we work has forced PE firms to re-evaluate their priorities in the coming times. As retail continues to recover from the trough, it has brought good news for the investors. If played well, the sector offers huge gains for them as the market grows. Going into 2021, how do the key operational levers related to customers, store, and beyond stack up?
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