Retail CEOs debate AI, crime and the new era of trade volatility

Graham Bell, CEO of B&Q, framed the current climate as a permanent departure from pre-pandemic predictability. He noted that retailers must now maintain hyper-agile supply chains to navigate inflation and tariff shifts. To stay competitive, B&Q has partnered with Google to optimize data for generative AI agents, prioritizing searchability as traditional SEO methods wane. Bell emphasized that while technology is vital, physical stores remain essential for providing expert advice and service.

Sweaty Betty CEO Melissa Mullen echoed the importance of the human element in an automated landscape. Despite the efficiency gains AI offers in creative and operational tasks, she argued that in-store engagement is a powerful differentiator. Customers who interact across multiple channels are five times more valuable, yet physical retail faces mounting hurdles, including staff intimidation and organized shoplifting. Gavin Peck, CEO of The Works, highlighted another systemic issue: the tax burden of UK business rates, which penalizes high-street stores compared to out-of-town e-commerce warehouses. Peck’s company recently shuttered its online store to refocus on its 500-plus physical locations, citing the difficulty of maintaining margins online and the need to prioritize local store strength during a period of intense economic volatility.