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The report covers topics including emerging trends that will shape the competitive landscape, the path to profitability for different retail models, and the sweeping impact of changing consumer preferences and technology. McKinsey’s report on the state of China’s grocery industry reveals a paradox: this huge market leads in online commerce and is growing rapidly but is also highly unproductive, with the lowest sales per square meter in the world. In the transport function, key steps include using efficient multimodal transportation more extensively. In the warehousing function, companies could consider shrinking their product mix, allocating more inventory to essential items, and introducing processes to reduce levels of human contact.
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The impact of the COVID-19 crisis shows that India’s logistics sector needs structural reforms more than ever. Educational systems can invest now to ensure all students have the chance to recover from the pandemic’s many setbacks. If current trends persist, historically disadvantaged students could remain up to a grade level behind their peers. Students in majority-White schools are now just two months behind historical levels. Taking a measure of US student achievement after pandemic-era school closures is a bleak business: students in majority-Black schools are five months behind where they would otherwise have been, both in math and reading. Their biggest economic worry, by far, and a prime barrier to sustainable and inclusive growth? Access to healthcare and/or health insurance. Our second American Opportunity Survey revealed that Americans are aware of the labor market changes: 49 percent of respondents said that most Americans have opportunities to find good jobs, up seven percentage points from March, when we first conducted our survey. Companies seeking labor resilience should learn to measure risk, design bold interventions, and ensure strong executive-level support. But deeper structural shifts could have a longer-lasting impact. Some underlying factors are directly related to the impact of the pandemic and may be temporary. The labor mismatch in the United States has pushed private-sector wages to increase at more than double the long-term pre-COVID-19 growth rates, yet positions remain unfilled. In all regions and sectors, the COVID-19 pandemic shaped the story in 2021, and the recovery helps set priorities for 2022. This week, we took a measure of labor, economic opportunity, and education in the United States examined logistics in India and grocery in China and analyzed 12 key ways in which the world changed this year. ’Tis the season for McKinsey to look back, survey, and publish a variety of “state of” reports.