In early July 2025, the Capgemini Defra Client Account hosted a unique environmental volunteering event in an urban green space in London. The initiative, a BioBlitz Day, brought together nature, technology, and community engagement to support biodiversity and pollinator health

Designed to align with the Account’s sustainability goals and broader environmental commitments, the event offered participants a hands-on opportunity to contribute to ecological data collection whilst also offering participants the restorative benefits of time in nature.

PARTNERING WITH POLLENIZE CIC​

The event was delivered in collaboration with Pollenize CIC, a community interest company dedicated to pollinator conservation. Capgemini’s partnership with Pollenize began in 2022 through the Tech4Positive Futures initiative, which led to the development of a digital rewilding tool. Our collaboration continued with the creation of NestSweeper, an AI-driven mobile app, designed to combat the threat of Asian hornets. ​

Given this strong foundation and shared commitment to environmental innovation, partnering with Pollenize by supporting a BioBlitz Day was a natural next step.

DELIVERING THE BIOBLITZ EXPERIENCE

A BioBlitz is a structured biodiversity survey designed to encourage citizen involvement in helping to generate ecological data. The day began with a welcome and introduction session, to explain the purpose of survey, provide some basic tools, give guidance on how to best make insect and plant observations and an overview of the iNaturalist Classic app, which was used to record those observations.​​

Participants then explored the site, photographing and logging sightings of insects, plants and flowers using the app. These observations are then uploaded to the global iNaturalist platform (via the app), where they can be reviewed by a community of nature enthusiasts and scientists.

“It was fantastic to see colleagues from Capgemini and Defra come together through a shared commitment to social value whilst using technology in a meaningful way to support environmental goals. A great example of purpose driven teamwork at its best.”

Rosanna Boxall, Defra Client Account, Sustainability Community Lead, Capgemini

SUCCESS STORY

While it is possible to run a basic BioBlitz event independently – simply by using the iNaturalist app to log observations – the experience delivered by Pollenize goes much further. What distinguishes their approach is the post-event analysis. Using Floradex, their bespoke biodiversity tool, the validated data is transformed into a tailored report identifying ecological gaps and recommending future planting strategies to support pollinators and improve ecosystem health. By managing logistics, applying scientific expertise, and leveraging digital tools, a simple survey is transformed into a powerful instrument for environmental actions. ​

To further extend the experience of the day, all volunteers received QR-coded wildflower seed packets – developed through the aforementioned Tech4Positive Futures initiative – allowing them to contribute to the rewilding project by creating pollinator-friendly habitats at home, reinforcing the concept that sustainability starts with small, local actions.

STRATEGIC ALIGNMENT​

The BioBlitz aligned directly with the Defra Client Account’s Sustainable Delivery Charter, a framework developed with Capgemini’s UK Sustainability team and endorsed by our client. The Charter reflects a shared commitment to reducing delivery emissions and contributing to nature – two priorities central to both Capgemini and Defra.

“This was a great example of people and technology combining in a fun activity to deliver benefits to the local environment and we are now exploring running further events in other parts of the country.”

Tony Richardson, Portfolio Manager & Client Sustainability Lead, Defra Client Account, Capgemini

IMPACT

The BioBlitz Day delivered measurable ecological and clear organisational value. Over the course of just one hour, participants recorded 457 new observations and identified 183 species – an impressive increase compared to the 118 observations and 85 species recorded in the same area between January 2018 and June 2025. This surge in data highlights the power of structured, volunteer-led action in generating valuable insights for biodiversity monitoring. The event brought together individuals from across the Defra Client Account, Defra and Capgemini, united by a shared commitment to environmental stewardship. It also demonstrated how well-designed initiatives can align grassroots engagement with strategic sustainability goals, while offering additional benefit such as improved wellbeing through time spent outdoors and connecting with nature.

WHAT’S NEXT

The journey continues in October 2025 with a Meadow Creation Day, where the team will return to the site to plant wildflower seeds based on insights from the BioBlitz. A second mini-BioBlitz will be carried out to increase biodiversity knowledge of the area and help track any changes.

“I’m really pleased we could contribute to nature through the efforts of our sustainability team volunteers, have fun in the urban outdoors and further our support for Pollenize – I’m off to plant my wildflowers!​”

Simon Weeks, Client Engagement Director for Defra Programmes & Projects, Capgemini

What are the upcoming trends in the Field Force space?

Organisations with significant Field Forces face increasing pressure to deliver reliable service, reduce environmental impact, and improve customer satisfaction. Emerging technologies like AI, AR/VR, and predictive analytics provide organisations with a golden opportunity to deliver unprecedented efficiencies, accelerate improvements, and revolutionise their Field Service operations. Let’s explore three key trends that are reshaping how Field Force organisations deploy, support, and empower their Field Engineers.

Proliferation of Automation and AI

The most obvious genesis of any step change in performance is the proliferation of automation and Artificial Intelligence (AI). There is a wide range of ways that automation and AI can and will affect organisations moving forward. In the Field Service space, this could mean steps forward in three particular areas are accelerated:

• Automating Scheduling and Agentic AI Assistance – Automated scheduling and job dispatch could be done based on a Field Engineer’s skills, location and job urgency. Amendments could be made by Agentic AI to dynamically shift the schedule as priorities move throughout the day. This product specific improvement would dramatically improve the first-time fix rate and response times to urgent incidents.
• Process Automation – Automation opportunities are not just limited to product specific improvements. Outside of the product scope, there are a set of activities, often found at the start and end of the Field Service process, that can be automated. For example, the creation of job work packs, reports and invoices. Automating these tasks could drive efficiencies to allow colleagues to shift their attention to delivering other high-value tasks.
• Predictive Maintenance – Real-time IoT data can be analysed to anticipate equipment failures before they occur and create tailored maintenance schedules accordingly. Adding this analytical capability to a Digital Capital Delivery function and an Agentic AI could be game-changing for Field Force organisations. This could offer organisations the capability to automatically schedule work to handle minor incidents before they escalate to a major asset failure and cause further disruption to customers. For example, a minor part failure on a water pump left undetected escalates to an asset failure causing an outage or pollution event.

Rollout of AR and VR Use Cases

In short, Augmented Reality (AR) offers the opportunity to overlay digital content for a user to help them navigate a task. Virtual Reality (VR) offers the opportunity to create an immersive world replacing real-world surroundings. These both have several uses in Field Service organisations, for example:

• Task Assistance – Headsets can allow experts to overlay instructions or annotations in real time, guiding inexperienced and/or more Junior Field Engineers through complex tasks without needing to be physically on-site. This can enable organisations to reduce out-of-hours/standby callouts, reduce overtime, and increase employee wellbeing.
• Hands-Free Access – Field Engineers can view schematics, manuals and diagnostics directly in their field of vision from a knowledge bank of operational procedures. This would reduce the need to carry physical documents or consult handheld devices whilst on a job, improving safety and the speed of task completion.
• Training – Field Engineers can practice repairs, installations, or emergency procedures in a controlled setting without risk. Following the task, their performance can be reviewed to offer feedback and improvement pointers for next time. As an interactive training device, this technology would help provide a safe space for colleagues to upskill in an engaging environment.

Focus on Human Centred Approach

In addition to AI and technology-driven improvements, there will also be areas that are driven from a human centred perspective. For example:

• Performance Evaluation – Field Engineers may be increasingly evaluated using AI-based performance tools. This could have several pros and cons but should lead to more objective based performance conversations.
• Customer Information – Technology improvements can empower customers to schedule, track, and manage service requests independently. In a similar way to ordering a parcel from an online retailer, the customer will be kept informed of the progress of their request from creation to completion.
• Customer Focus – Leaders will be able to shift their scheduling priorities to align with their organisational, customer and regulatory goals. This can be driven for many different reasons. For example, customer preferences (i.e. to prioritise the completion of a particular job type), environmental drivers (i.e. to minimise the Field Engineer’s travel distance), or operational drivers (i.e. maximising the first-time fix rate).

Vendors such as Salesforce and Microsoft have capable solutions in this space. These products can satisfy many of a client’s requirements with their out-of-the-box functionality. Naturally this enables the implementation process to be as smooth as possible, ensuring the solution can be embedded swiftly, and the benefits of the solution realised in a short timeframe.

Get in touch

See how we are already supporting Scottish Water transform their Field Force below. If you would like to know how we can support you on your Field Services journey, please get in touch to understand why Capgemini is your number one trusted business and technology transformation partner.

Scottish Water reimagines field services with SWIFT.

Over the past decade, asset-centric industries have steadily modernised their operations by adopting Salesforce Field Service. This powerful solution combines the capabilities of the Salesforce CRM platform with a state-of-the-art scheduling engine and an intuitive mobile app. Crucially, this shift is not merely a technology upgrade. It represents a broader transformation in business processes and value delivery.

As adoption continues to grow, organisations are increasingly embracing low or no-touch automation, enabled by the advanced features of the Salesforce platform. In my view, we are now entering the next phase of field service transformation driven, unsurprisingly, by the rise of AI.

Looking ahead to the next five to ten years, AI is poised to play a pivotal role in shaping field service operations across asset-intensive sectors such as Utilities, Energy, Manufacturing, Life Sciences, Telecoms, Transport, Aviation, Consumer Products, and the Public Sector.

In this blog we look at how Salesforce Field Service can harness native AI capabilities, to unlock new levels of efficiency and value.

Work pack abstract

A typical field service work order contains many artefacts comprising both structured and unstructured data. Planning and field teams have to look for information that is scattered across many places, buried in long text fields or drawings. This is where a multimodal based agent, built in Agentforce, can create work summary information from the various data points and make it meaningful to the users to do their job. This would save time and help bring key information to the forefront to help users move the work to the next stage.

Planning and scheduling

Data-driven prediction is going to play a major role in shaping up the planning and scheduling aspect of field service. For example:

• Based on the historical data, predicting the special parts that are required to enable the successful delivery of incoming work and automatically reserving or ordering the part in advance.
• Predicting the actual duration of a work type to feed into the planning process.

All of this is made possible by using Salesforce’s Data Cloud Einstein Prediction algorithm. This unlocks the ability to positively impact several KPIs such as first-time fix rate, cost to serve, and time to value.

Image and document analysis

This area is one of the most impactful applications of AI. Field service operations generate a lot of documents, and the content of these documents requires manual intervention to validate the context of the document in line with the context where it is linked to. Especially, if the document is tied to a regulatory outcome, or health and safety, or commercial outcome. Engineers can upload images, such as before-and-after shots of repairs, which are automatically assessed by AI agents for quality, clarity, and relevance. These agents validate content against job descriptions, ensuring that only high-quality, verifiable records are accepted. When a document cannot meet the required standard, the AI agent can create an action and therefore providing huge savings in time and cost across the value chain.

AI-Powered prioritisation and scheduling: smarter, faster, more accurate

Prioritising a job is always a challenge in field service as there are multiple factors at play and often this varies within and across the sectors. The priority is key for the scheduling engine to make sure the right jobs are given consideration first over low priority jobs.

AI driven agents can be used to assess the jobs to give a priority score, based on key information on the job and data-driven prediction via historical information.

This leads to improved first-time fix rates, reduced travel time, and enhanced technician productivity. In sectors where service windows are tightly regulated and asset downtime can be costly, AI-driven scheduling delivers operational and customer experience benefits.

Data-Driven decision making. From insights to action

In the past, machine learning models have been used to analyse historical service data and IOT sensor data, predict asset failures, and recommend proactive maintenance strategies, using niche modelling tools. This is now possible using Data Cloud that can bring all the relevant data into one place to apply predictive algorithms that can drive actionable insights.

Conclusion: the future is intelligent and value-driven

The future is intelligent, and it’s already underway. It is only going to grow significantly and help companies unlock value. Companies will need to adopt a crawl-walk-run approach to embrace the power of AI into their field service operations.

The following areas are yet to evolve, and these will help even more in bringing value to field service operations

• AI driven What-if analysis
• AI driven demand forecasting
• Mobile first AI Image analysis
• Multi agent and RAG models to help take the AI beyond Salesforce platform

But for now, I’m excited to see how organisations look to adopt AI into their field service operations today and witness the benefits it can bring.

Get in touch

We are already helping our clients use Salesforce Field Force technology to help them deliver high-quality, data-driven, and sustainable field services. Find out more here to discover how we are helping Scottish Water reimagine their field services with SWIFT.

SAP can transform data into actionable insights for your business.

Many organisations are becoming familiar with SAP Business Data Cloud (BDC) and its role in unifying SAP’s data and analytics portfolio. However, there’s often less clarity around how SAP Analytics Cloud (SAC) fits into that picture and how it’s being extended through a growing set of Intelligent Applications.  

These pre-built, embedded applications are one of the most significant developments within BDC but are frequently overlooked in early-stage discussions. They provide a new way to deliver rapid, tangible insight across business domains. As embedded components, they reduce time to value and allow organisations to benefit from BDC’s unified data infrastructure.

Understanding BDC Architecture

BDC brings SAP’s data landscape into a single, streamlined environment. At its core are Data Products: predefined, governed data building blocks for areas such as finance or HR. These can be used directly in analytics or planning without duplication, ensuring consistency and reducing manual effort.

SAP Datasphere underpins BDC as the semantic layer, providing governance and business definitions across all assets, while SAP’s integration with Databricks enables advanced analytics and machine learning without replicating data. 

On top of this clean, modern core, SAC provides the visualisation and planning layer. It enables browser-based interaction with governed data in Datasphere and BW, removing the need for fragmented tools or complex data movements.

What role does SAC play?

Within BDC, SAC is the main entry point for business users. It brings together dashboards, reporting and planning in a single environment powered by live data. Because SAC integrates actuals with plans, it supports Extended Planning and Analysis (xP&A) across finance, operations and other domains. This helps teams respond more quickly to changing conditions, using real-time inputs without manually reconciling data across systems. 

BDC enhances this by incorporating real-time operational data into planning scenarios. SAC’s AI tools, including the Joule co-pilot, provide contextual insights directly within the interface. The integration with Databricks extends access to advanced models, making data science more accessible to non-technical users.

Intelligent Applications = instant value 

Intelligent Applications (previously known as Insight Apps) are domain-specific analytical solutions that run directly within SAC. Designed for functions such as HR, finance, supply chain and procurement, they come pre-loaded with KPIs, logic and planning scenarios.

Examples include Finance Intelligence, which quick starts general operational finance reporting, and People Intelligence, where workforce management is provided in a few clicks.

These apps are activated from within the BDC workspace and appear in SAC as ready-to-use dashboards or planning environments, complete with their own data models. They consume curated Data Products from Datasphere, avoiding the need for custom data pipelines or duplication. They also inherit definitions, hierarchies and access permissions from the semantic layer.

This significantly reduces deployment friction and allows faster delivery of value. For instance, People Intelligence, due in late 2025, will support workforce planning by offering insights into skills distribution and compensation. Other upcoming apps will focus on ERP, customer intelligence and financial forecasting.

A strategic future for SAC

SAC is central to SAP’s long-term analytics vision. As BDC becomes the standard platform, SAC will be the primary interface for analytics, planning and decision support.

It does more than display data. SAC connects directly to governed sources via Datasphere, maintaining consistency and reducing duplication. It allows users to model scenarios and align plans with actuals, all within the same environment.

SAP is investing in making SAC more intelligent and more embedded. Intelligent Applications will continue to expand, offering business users structured, guided analytics aligned with best practices. With tools like Joule and a growing application layer, SAC is becoming a platform for embedded intelligence that helps automate parts of the decision-making process.

Migration and adoption: what are the challenges and opportunities?

Transitioning to BDC varies by organisation. Some are migrating from traditional BW, others already use SAC and Datasphere, and some are adopting SAP analytics for the first time. All face the same challenge: achieving a smooth transition that preserves value and sets the stage for modern analytics. 

As your business and technology transformation partner, Capgemini can help you assess your current architecture, determine BDC readiness, and design tailored migration plans. For those on BW, a common approach involves lifting content into BW PCE first, then reusing logic in Datasphere over time. Others focus on simplifying pipelines and adopting Data Products to reduce modelling overhead. 

Intelligent Applications often play a key role in these journeys. Capgemini supports clients in preparing compatible data models, identifying valuable use cases, and customising apps where required. This ensures a faster route to benefit and a solid foundation for scaling.

Strategic considerations for leadership

BDC shifts analytics from an infrastructure focus to an outcome-driven model. By embedding SAC and Intelligent Applications into daily operations, businesses reduce custom development effort, accelerate delivery, and improve agility.

BDC’s semantic layer, supported by a knowledge graph, provides trusted, explainable insights. This is essential for regulatory compliance and responsible AI. Its multi-cloud support allows organisations to adopt flexible deployment models and prepare for future innovation, including generative AI.

Licensing for Intelligent Applications is included with SAC only when licensed as part of BDC. Organisations using SAC standalone will not have access to these apps by default. Pricing is based on named users, with additional charges for planning users or advanced functionality. Understanding this model early is important for budgeting and deployment planning. Capgemini helps clients map licensing to roles and use cases, ensuring maximum return on investment.

Moving forward with confidence – how Capgemini can help

SAP BDC represents more than just a platform shift. With SAC and Intelligent Applications at its core, it changes how insight is delivered: faster, embedded, and governed from the outset.

For technical teams, it provides a reason to rationalise data models and focus on reusability. For business users, it provides consistent and actionable insight without waiting on bespoke development.

Realising this value requires early planning. As a trusted SAP Business Partner, Capgemini can help you shape your BDC roadmap in a way that aligns technical strategy with business outcomes. Whether you are modernising BW, scaling SAC, or implementing Intelligent Applications, we provide the guidance and delivery capability to make the transition successful and future-proof.

Get in touch to start the journey today. 

In our latest retail-focused point of view, ‘Five tried and tested operational principles for retail resilience’ , we explored the key challenges facing today’s UK retailers and the mindset shift needed to maximise profit, reduce costs, enable all-channel growth, and connect with customers.

Though these operational principles are relevant and actionable across the industry, grocery stands apart in the world of retail, with its own set of challenges. It’s fast-moving, margin-tight, operationally complex, and considered one of the most competitive markets in the world. While other sectors can afford to hold stock, test pricing strategies, or absorb inefficiencies, grocery retailers operate in an environment where every decision – from supplier negotiations to shelf placement – can make or break profitability.

At a time when retail price inflation is at its highest in over a year and consumers are tightening their belts on discretionary spending, the pressure on grocery retailers has never been greater. Navigating this landscape requires more than just experience – it demands bespoke, data-driven solutions tailored to the sector’s unique challenges.

Grappling with a grocery price war

Consumers are demanding lower prices but delivering them sustainably is a high-wire act. A third of all grocery spending now comes via promotions, with tactics like discounter price matching becoming the norm. But while promotions drive volume, they often erode profitability. The challenge? Planning pricing strategies that are both effective and sustainable.

Meanwhile, shrinkage – from theft, spoilage, or errors – continues to eat into margins. Retailers are investing heavily to get it under control, but without the right data and tools, it’s difficult to pinpoint where losses are occurring and how to prevent them.

Asda’s recent, aggressive pricing strategy sent shockwaves through the market in its aim to make Asda 5-10% cheaper than competitors. Their statement of intent impacted the share prices of Tesco, Sainsbury’s, and M&S – illustrating how a bold pricing move by one player in a highly competitive market can trigger a chain reaction, affecting not just pricing strategies but also investor confidence and company valuations.

Retailers must now walk a tightrope: invest in price to win market share, but without sacrificing profitability. This is where strategic pricing, granular cost modelling, and end-to-end visibility become critical. Can grocers identify and invest in “hero products” that shape price perception, while balancing margins across the rest of the range?

Channel mix: growth vs. Margin

Tesco’s latest figures show online grocery sales have surpassed their pandemic peak, now accounting for 13.5% of UK revenue. While this channel is a growth engine, it comes with a cost: online fulfilment is significantly more expensive, eroding margins. Retailers must align on a margin measure that surfaces the true cost of omnichannel operations. This will provide the business case required to invest in technologies that optimise fulfilment efficiency and help inform ranging decisions in the online assortment.

The double-edged sword of QuickCommerce

A survey by Retail Gazette found that over 65% of major retailers have partnered with at least one quick commerce delivery service provider to meet the growing demand for quick deliveries. This trend allows customers to receive their groceries within minutes, enhancing the overall shopping experience and catering to the modern consumer’s preference for speed and convenience.

But with this boom comes a dilemma. Retailers know they must partner with these quick commerce platforms to be seen as a convenience brand, but not only does it disrupt traditional operations – pulling staff away from tills, demanding rapid fulfilment, and driving higher item pricing to cover platform margins – it’s also through these channels that they lose key customer information. As soon as a customer opts for an Uber Eats or Deliveroo delivery option, they are no longer a customer of the grocer. Which results in a fragmented customer journey and patchy data – making it harder to drive personalised, cohesive experiences and, ultimately, revenue.

The key is implementing the right tools and using that data effectively, to:

• Personalise promotions
• Inform assortment decisions
• Drive long-term customer value

Discover how to master data & AI to power the next generation of retail here.

The most forward-thinking retailers are already years ahead with this – leveraging data (and AI) to drive efficiency, profitability, and customer satisfaction. But how can those whose data & AI strategies aren’t quite as mature catch up? Read all about mastering your data & AI strategy in this detailed blog from our colleague Conor McGovern, Lead Enterprise Data & Analytics in the UK and globally, and global lead for Generative AI Strategy.

Is the EU trade deal a supply chain silver lining?

Amid the challenges, there’s a glimmer of good news. The recent UK/EU trade deal promises to reduce the bureaucratic burden of importing goods, lowering costs and friction in the supply chain. Retailers with deep supply chain visibility and agile pricing models will be best positioned to capitalise – seizing first-mover advantages and capturing market share before competitors can react.

Navigating the profitability puzzle

To thrive in this environment, grocery retailers must master the art of profitability across multiple dimensions:

• Gross Margin Management: Lowering COGS through supplier partnerships and dynamic pricing tools like electronic shelf labels.
• Inventory Turnover: Reducing waste and optimising stock levels, especially for perishables.
• Product Mix: Balancing loss leaders with high-margin private label and premium products.
• Shrinkage Control: Minimising theft and errors through better systems and training.
• Operational Efficiency: Leveraging automation and just-in-time logistics to reduce overheads.
• Data-Driven Decisions: Applying AI and analytics to optimise assortment, pricing, and promotions.

Introducing bespoke tools to a bespoke challenge

Whether it’s optimising assortment, adjusting pricing, or forecasting demand, data-driven decision making is the key to unlocking profitability in grocery. With the right tools, you can move from reactive firefighting to proactive strategy.

In our point of view, we highlighted the product profitability tool we built for a leading grocer to bring to life key operational cost data in a tailored, interactive dashboard.

This BI platform:

• Calculates net margin – including operational, overhead, shrinkage, and pricing costs – at the product and category level
• Visualises margin variation across categories and suppliers
• Supports better-informed assortment planning decisions
• Models the impact of changes to pack size, supply routes, shelf space, and ranging decisions – i.e. removing product X and replacing with product Y
• Supports AI-driven forecasting and planogram optimisation

And most importantly, it’s tailored to your operation. We can modify the tool to reflect your unique business model & supply chain and tackle your challenges & goals.

Let’s talk

The grocery sector in 2025 is a battlefield of price, perception, and performance. Retailers who succeed will be those who can balance short-term competitive tactics with long-term strategic resilience—investing in digital infrastructure, mastering cost control, and using data to drive smarter decisions.

The winners won’t just be the cheapest. They’ll be the most agile, the most insightful, and the most resilient.

If you’re interested in learning more about our product profitability tool – or if you’re facing any of the challenges mentioned above – get in touch. We’d love to explore how we can help you build a smarter, more resilient business.

The secret to general merchandise profitability

In our latest POV, ‘Five tried and tested operational principles for retail resilience’, we examine the key challenges UK retailers face and the mindset shift required to maximise profit, reduce costs, enable all-channel growth, and connect with customers.

General merchandise categories like clothing, home goods, electronics, and entertainment, are particularly sensitive to inflation, shifting consumer behaviour, and global supply chain volatility. These categories often experience frequent price fluctuations due to their high elasticity, making profitability a moving target.

In the years following the pandemic, inflation has significantly increased operating costs – further compounded by the effects of geopolitical tensions and, more recently, tariffs. These mounting pressures are prompting retailers to reassess their pricing strategies and supplier partnerships to sustain profitability.

So, what actions are key players in the general merchandise Retail industry taking to ensure they’re ahead of the game in protecting their product profitability? And what can the rest of the sector do to follow suit?

Why is cost control key for Retail in 2025?

According to Lloyds’ Business Barometer, the UK retail landscape in 2025 was forecasted with cautious optimism as inflation has started to ease, interest rates are stabilising, and real household disposable income has grown by 3.3% over the past year. Despite this optimism, British retail sales for non-food stores, such as clothing and department stores, fell by 1.4% between April and May. This is telling us consumer sentiment remains fragile, shaped by lingering economic shocks, geopolitical tensions, and the impact of new tariffs and regulatory costs.

Retailers are preparing for a possible £5bn surge in operating expenses this year, driven by wage increases, National Insurance hikes, and the full implementation of packaging Extended Producer Responsibility (EPR) rules. Retailers are right to remain cautious, focus on resilience, margin protection and operational resilience.

What profit protecting strategies are general merchandise retailers taking?

Understanding end-to-end costs

To safeguard profitability, general merchandise retailers should take a comprehensive view of their cost base, factoring in packaging, transport, storage, and replenishment, while also navigating global tariffs and geopolitical uncertainty.

Despite a slight drop in sales, the Very Group returned to profitability due to continued and diligent cost control and a focus on higher-margin products. Their disciplined approach to cost management and product mix optimisation is a blueprint for the general merchandise market. The retailer focused on pushing sales of high-margin product, increasing operational efficiencies at their automated fulfilment centre to process and dispatch orders quickly, and technology investments to a cloud-based platform to improve customer experience and reduce friction in the purchase journey.

Exploring global opportunities

In response to newly imposed tariffs GM companies may be exploring strategic sourcing, such as reshoring or exploring new trade routes, but setting up new sourcing and manufacturing can cause cost-inflation so pricing strategy will remain a key consideration. They will need to be mindful of how price-sensitive their customer is to understand how much additional cost the company is prepared to absorb, or to pass along to their customer. They will need to leverage price elasticity and strategic promotions to determine customer sentiment.

Many UK retailers are reliant on global supply chains, and they will feel direct impact from rising tariffs on imports from the US, China, and Europe. To combat the tariff challenges, businesses may need to reconsider their suppliers, reshoring operations or seeking alternative trade routes. Positive action is being taken across the UK to alleviate margin pressure, with a UK-India trade deal that will reduce tariffs on India’s clothing and footwear exports. This will improve supply chain diversification, offer more attractive sourcing destinations and improved cost competitiveness without compromising on quality.

Designing strategies to remain competitive

Retailers are navigating a rapidly evolving landscape shaped by economic pressures and shifting consumer expectations. In response to the cost-of-living crisis, shoppers are becoming more value-conscious and we see shoppers trading down to own-label products, reducing discretionary spending, and limiting basket sizes. To remain competitive, retailers must adopt strategies that go beyond pricing, focusing on disciplined cost control, accurate demand forecasting, and strategic expansion to meet changing customer needs and protect margins.

As the retail environment becomes increasingly digital, a new layer of complexity is emerging: the rise of agentic consumers, where AI-powered shopping agents make decisions on behalf of human shoppers. These agents filter choices based on price, availability, ethical sourcing, and personal preferences – reshaping how products are discovered and purchased. For retailers, this means product data accuracy, localisation, and algorithmic visibility are becoming as critical as price and promotion. Adapting to this shift will be essential for capturing local demand and safeguarding profitability in an AI-mediated marketplace.

Sustainability and conscious consumerism: a strategic lever for profitability

As general merchandise retailers strive to protect margins and future-proof operations, sustainability and conscious consumerism are no longer peripheral concerns – they’re becoming central to commercial strategy. Today’s consumers are increasingly making purchasing decisions based on ethical sourcing, environmental impact, and brand transparency. This shift is not just a reputational imperative; it’s a profitability opportunity.

Marks & Spencer is embedding sustainability into its core business model to drive profitable growth. Initiatives include carbon footprint reduction across its supply chain through cutting plastic packaging and hangers at different stages of the customer journey, sustainable sourcing of raw materials, and customer engagement using transparency tools.

Retailers that embed sustainability into their supply chain through circular product design, low-impact packaging, and carbon-efficient logistics can unlock cost savings, reduce regulatory risk, and build stronger customer loyalty. For example, the implementation of Extended Producer Responsibility (EPR) rules is driving retailers to rethink packaging and waste, turning compliance into a catalyst for innovation.

By aligning operational efficiency with environmental responsibility, general merchandise retailers can meet the demands of both regulators and customers – while building more resilient, future-ready businesses.

How can digital transformations fuel profitability?

Intelligent forecasting is paramount

The macro-economic and geopolitical climate has been challenging to demand forecasting and promotion planning. Retailers need to be savvy about how changing customer behaviour will affect purchasing patterns. We recognise opportunity for AI-driven integrated business planning – for example implementing AI-driven demand forecasting to optimise planning through predictive analysis from AI analysis of historic data, sales trends, store behaviour, and customer traffic. This both frees up planners’ time, enabling them to be more strategic, and supports reducing overstock and stockouts while minimising waste.

As eCommerce continues to expand, retailers are under pressure to balance growth with profitability. Rising fulfilment costs and high return volumes are eroding margins, prompting a shift toward integrated, omnichannel strategies. By blending physical and digital operations, retailers are not only improving customer engagement but also driving operational efficiency and long-term value.

For example, Holland & Barrett is celebrating its second consecutive year of double-digit growth, attributed to its significant investment in its digital transformation strategy. This digital transformation has been focused on improving stores, technology, and new product development.

Capital investment to fuel transformation in value fashion

As the value fashion sector faces mounting pressure from shifting consumer expectations and rising operational costs, strategic investment is becoming a key lever for profitability. New Look’s recent multi-million-pound funding round of £30m signals a renewed focus on transformation, with capital earmarked for modernising its store estate, enhancing digital capabilities, and optimising supply chain operations. This investment reflects a broader trend among high-street retailers to future-proof their business models through targeted reinvestment, ensuring they remain agile, relevant, and profitable in a rapidly evolving retail landscape.

Unlocking operational excellence with AI

AI is rapidly becoming a cornerstone of operational excellence in general merchandise retail. From automating demand sensing to simulating supply chain scenarios, agentic AI empowers supply chain and operations teams to make faster, more informed decisions that directly impact profitability.

According to Salesforce, 73% of UK retail decision-makers are increasing investment in agentic AI, with the most significant gains seen in unifying commerce platforms – connecting inventory, logistics, and customer data to streamline fulfilment and reduce operational overheads.

In our POV ‘Agentic AI in Supply Chain: Transforming Operations & Decisions’, we explore how agentic AI complements traditional automation by introducing autonomous decision-making capabilities. This evolution enables dynamic inventory allocation, real-time exception handling, and predictive scenario planning – transforming how retail supply chains respond to volatility and complexity.

The most resilient retailers embrace strategic agility

In 2025, general merchandise retailers are operating in a landscape defined by complexity but also opportunity. Inflationary pressures may be easing, but rising operational costs, shifting consumer behaviours, and global trade disruptions continue to challenge profitability. The most resilient retailers are those embracing strategic agility: rethinking cost structures, diversifying supply chains, and investing in digital transformation.

Success will hinge on the ability to blend operational discipline with innovation. This means considering cost containment, omnichannel models to meet customer demand, and using data-driven insights to fine-tune pricing and promotions. There will be opportunities for retailers to begin leveraging AI, for purposes such as enhancing forecasting and planning. Retailers that take a proactive, end-to-end approach through balancing cost control with customer-centricity, will be best positioned to protect and grow their margins in a volatile market.

Ultimately, profitability in general merchandise retail will not be won by caution alone, but by those bold enough to adapt, invest, and lead with insight.

Get in touch if you’re looking to take control of operational costs and turn insight into action. We’d love to help.

The European B2B passenger car market is undergoing a seismic shift. Here we delve into the transformative trends shaping this market – from the allure of flexible leasing to the surge in electrification – and how OEMs can successfully adapt to this dynamic landscape.

As the European automotive landscape undergoes a seismic shift, Business to Business (B2B) passenger car sales are emerging as a critical growth engine for Original Equipment Manufacturers (OEMs). With true fleet registrations (all registrations by legal entities/companies) now accounting for over 30% of new car sales in most EU markets¹, the B2B segment is not just important – it is the next battleground for market dominance.

The Complexity Behind B2B Sales

Unlike Business to Customer (B2C), B2B sales are a multi-layered ecosystem involving Original Equipment Manufacturers (OEMs), leasing companies, dealers, and a diverse range of customers – from small and medium sized enterprises (SMEs) to large corporate and public institutions. This complexity demands tailored strategies, robust digital infrastructure, and a deep understanding of customer needs.

Market momentum: growth and electrification

The European B2B market is on a steady upward trajectory. In the EU5 (UK, France, Germany, Spain, and Italy) true fleet registrations are projected to grow from three million in 2024 to 3.2 million by 2029.

Electrification is another defining trend. More than 40% of the company car market is projected to be electric by 2029, driven by regulatory pressures to reduce emissions, and supported by Battery Electric Vehicle (BEV) tax incentives. These factors are particularly influential in segments where there is price parity between Internal Combustion Engine (ICE) and BEV alternatives.

Electrification is another defining trend. More than 40% of the company car market is projected to be electric by 2029, driven by regulatory pressures to reduce emissions, and supported by Battery Electric Vehicle (BEV) tax incentives. These factors are particularly influential in segments where there is price parity between Internal Combustion Engine (ICE) and BEV alternatives.

However, there are challenges as well. Unpredictable residual values in the used electric vehicle market are threatening leasing companies’ profits, leading them to seek deeper discounts from OEMs. Competition from Chinese OEMs, tariffs, and trade instability are further squeezing OEMs’ profit margins. Despite these challenges, the B2B fleet market remains a key growth area for OEMs and should be prioritised as the industry evolves.

What’s driving the shift?

Several forces are converging to reshape the B2B landscape:

1. Cost efficiency: Fleet deals offer better Total Cost of Ownership (TCO) through bulk discounts, tax benefits, and predictable maintenance costs.
2. Flexibility: Leasing and subscription models provide adaptable contracts and access to a wider range of vehicles.
3. Sustainability: Regulatory pressure and corporate ESG goals are accelerating EV adoption.
4. Digitalisation: Fleet managers demand seamless digital experiences -from vehicle configuration to telematics and aftersales.

On top of this is the major force of shifting customer expectations. According to research by Capgemini’s automotive team in Germany:

• Flexibility is king: 78% of leasing companies cite flexibility in vehicle choice and 76% in contract duration as top customer needs.
• Customisation is rising: 71% of managers expect growing demand for individual service modules – like cafeteria-style leasing packages or menu of options.
• Alternative mobility is mainstream: 78% of companies now offer public transport allowances, bike leases, or cash-for-car schemes.
• Subscriptions are gaining ground: 54% of fleet managers already use or plan to use subscriptions, with 40% viewing them as a viable alternative to long-term leasing.

Major perceived differences in customer needs between the EU markets, based on a survey of LeaseCo managers

These trends reflect a broader shift in consumer behaviour – away from ownership and toward access, convenience, and personalisation. These factors are also driving a change in preferred financing products. Operational leasing and subscriptions are on the rise.

Operational leasing is the fastest-growing financing method, expected to grow by 17%, reaching over 1.1 million by 2028¹. This growth is fuelled by:

• EV Affordability: Leasing helps align monthly EV costs with ICE vehicles.
• Convenience: All-inclusive packages simplify fleet management.
• Predictability: Fixed costs appeal to CFOs and procurement teams.

As for subscriptions, a 2023 survey by Dataforce shows that 40% of fleet managers view subscription models as alternatives to long-term leasing, while 33% see them as complementary.

Meanwhile, LeaseCos are consolidating and evolving. They are exploring ultra-short-term rentals to compete with subscription providers and meet rising expectations for flexibility. AutoFintechs are also entering the fray, with a projected 9.2% compound annual growth rate through 2031¹.

How can OEMs benefit from this opportunity?

To thrive in this evolving market, OEMs must activate four key profitability levers:

• Deploy low-depreciation models to reduce residual value risk.
• Offer modular service packages (menu systems) to capture flexibility premiums.
• Manage aftersales and uptime guarantees to generate recurring revenue and monetise connected services for fleet management.
• Recoup value through second-life leasing and resale optimisation.

Additionally, OEMs must adapt their B2B sales models to offer flexible contracts and customisable service modules. Partnerships with finance and leasing companies should be made more agile to provide innovative financial solutions.

Moreover, enhancing customer experience with digital tools like fleet configurators, fleet management systems and data-driven personalisation is crucial. This approach builds direct customer relationships, boosts loyalty, and unlocks strategic opportunities.

How Capgemini can help

Capgemini is well-placed to assist OEMs in managing this complex landscape. Our end-to-end fleet-specific transformation framework includes:

• Vision and strategy: We have helped German and Japanese OEMs set goals and target customer segments for fleet management, focusing on flexibility and efficiency.
• Digital infrastructure: We assisted Swedish, Japanese, Italian, and German OEMs in implementing CRM systems, pricing engines, and telematics to support low-depreciation models for leasing and resale.
• Sales enablement: We have supported Japanese OEMs in developing scalable B2B sales models, offering modular service packages to maximise flexibility premiums.
• Customer experience: We are experienced in helping global OEMs create seamless customer journeys across awareness, purchase, and aftersales, managing uptime guarantees for recurring revenue.

Whether you aim to expand your leasing operations, digitise your B2B sales, or accelerate the adoption of electric vehicles, Capgemini is ready as your business and technology transformation partner to help you navigate the next era of mobility.

Get in touch with our experts to find out how we can tackle your specific business challenge.

The third instalment in a cyber security series from Capgemini and RenewableUK explores how human behaviour remains the most exploited vulnerability in modern cyberattacks, what practical steps can be taken to mitigate this, and what we can all learn from Brad Pitt.

Greeks bearing gifts

Over 3,000 years ago, in the now infamous former city of Troy, defenders rejoiced as the Greek army was vanquished after a decade-long siege. The surrounding bay was clear of warships and the beaches empty of military tents. A huge wooden horse was the only indication they were ever there.

Had they not been so exhausted from battle and jubilant with victory, more sober Trojan minds might have questioned this conspicuous Greek gift. On this day, however, scepticism did not prevail. And so, it was not the mighty walls of Troy that were breached, with the perimeter still holding fast, nor was it the imposing gate that had shattered. It was not iron or wood, nor cement or stone, that ultimately laid Troy low. Rather it was trust, and manipulation of that all too human emotion.

Our technology has come a long way in the subsequent three millennia. Today we invest in firewalls, endpoint detection, and sophisticated scanning to protect our assets. But our amygdala – the part of the brain that processes emotions like fear – is much the same as our Trojan forebears. When we’re in a rush, links can seem convincing. After a long day, when we’re prompted to update our password, surely “BradPitt2004Troy” would do? It’s rarely modern cyber security defences that fail, but instead misplaced human trust often proves to be the weakest link.

People are the most exploited attack surface

Technology evolves and threat actors certainly innovate. But, year after year, the majority of security breaches still arise from human behaviour. Whether through deception, mistakes, or deliberate misuse, attackers increasingly target the people within organisations when seeking to open the proverbial gates. There are four primary ways in which human vulnerabilities typically manifest in cyber security breaches, though it is worth noting that these methods are rarely used in isolation, and Capgemini has tracked how frequently these occur:

1. Phishing and social engineering (68% frequency)
   A message appears benign or routine, but hides a threat, such as a file, link, or seemingly urgent request. Such threats often play on emotion through authority, urgency, or reward.
2. Credential theft and misuse (30% frequency)
   Usernames and passwords are the gate keys. Reusing passwords or choosing weak ones makes them easy to steal, guess, or phish.
3. Human error (28% frequency)
   Mistakenly CCing the wrong person, uploading the wrong file, or exposing data in shared documents. All are small mistakes with potentially big consequences.
4. Malicious insider threats (6% frequency)
   A trusted user goes rogue. Whether motivated by revenge, coercion, or negligence, they knowingly violate policies to harm their organisation.

When human risk becomes real

To illustrate how human-centric risks manifest in real world scenarios, we can look at four notable incidents which embody these primary categories:

1. NHS ransomware attack, 2022 (phishing and social engineering)
   In early 2022, the National Health Service (NHS) experienced a significant cyber incident involving a phishing campaign that targeted official email accounts, offering a stark illustration of how such an attack can compromise entire swathes of critical national infrastructure. 139 NHS email accounts were compromised and used to distribute over 1,157 phishing emails over a period of several weeks. The compromised accounts were used to send emails, often impersonating NHS.net – the email, diary and directory system for health service employees in England and Scotland – to trick individuals into providing personal or financial information, leading to the exposure of sensitive data for around 80,000 individuals. The Information Commissioner’s Office (ICO) later fined the responsible IT department £3 million for failing to implement adequate security measures, including the absence of multi-factor authentication (MFA). In this case, the attackers exploited human trust and the lack of basic security protocols, leading to widespread service disruption and data compromise, and underscoring how social engineering tactics, combined with insufficient security practices, can have far-reaching consequences.
2. The Colonial Pipeline attack, 2021 (credential theft and misuse)
   In May 2021, Colonial Pipeline from Texas to New York fell victim to a ransomware attack after hackers accessed it via a compromised password. The password had been used for several accounts on the network, meaning the hackers gained extensive access through it. They were, in effect, able to open multiple doors using a single key. The breach led to fuel shortages across the Eastern United States and a ransom payment of $4.4 million, resulting in widespread societal disruption from a seemingly minor oversight.
3. Facebook’s cloud misconfiguration, 2019 (human error)
   In 2019, security researchers from the software company UpGuard discovered that over 540 million Facebook user records were publicly accessible through misconfigured Amazon Web Services (AWS) cloud servers. The exposed data encompassed user IDs, comments, reactions and, in some cases, passwords. This incident was not the result of a sophisticated cyberattack but stemmed from human error, specifically the failure to properly configure the system. The developers neglected to implement basic security measures, such as password protection or encryption, leaving vast amounts of personal data vulnerable to unauthorised access. This breach underscored the potential impact of human errors, with even well-intentioned developers capable of inadvertently exposing sensitive information through simple missteps.
4. ‘The Tesla Files’, 2023 (malicious insider threat)
   In May 2023, Tesla disclosed a significant data breach affecting over 75,000 current and former employees. The breach was traced back to two former employees who, in violation of Tesla’s IT security and data protection policies, misappropriated confidential information and shared it with a German media outlet. The leaked data included names, contact information, social security numbers, and employment details. Investigation revealed that the insiders had accessed and exfiltrated over 100gb of sensitive data, which was subsequently named ‘The Tesla Files’. Investigations revealed that these former employees had grievances with Tesla’s management, underscoring how internal dissatisfaction can become a catalyst for malicious actions.

Empowering individuals to mitigate human-centric cyber risks

The good news is that organisations and their employees are equally able to solve the challenges of human cyber risk, and below are practical steps that RenewableUK members can implement to protect themselves and their organisations:

1. Phishing
   Organisations should participate in regular phishing simulations, which can significantly reduce the likelihood of falling for real attacks. Individuals should be sceptical of unsolicited communications, always verifying the authenticity of unexpected emails or messages, especially those requesting sensitive information or urgent actions. If in doubt, they should adopt a ‘better safe than sorry’ approach and flag the email as suspicious.
2. Credentials
   Organisations should enable multi-factor Authentication (MFA), which is able to block over 99.9% of account compromise attacks. Individuals should use strong, unique passwords, whilst avoiding reusing passwords across different accounts, and utilising password managers to generate and store complex passwords securely.
3. Human error
   Organisations should communicate best practices to their workforce, ensuring all cyber security practices are clearly understood and regularly updating their team’s knowledge to minimise the risk of inadvertent errors. Individuals should double-check before sending emails, especially those containing sensitive information, as well as verifying the recipients and attachments to prevent accidental data leaks.
4. Malicious insiders
   Organisations should foster a culture of integrity by encouraging open communication and ethical behaviour to deter potential insider threats. Individuals should report suspicious behaviour through the appropriate channels if they notice unusual activities or policy violations.

Whether it concerns ancient Troy or tomorrow’s Tesla, human vulnerabilities remain consistent targets for attackers. Addressing these human-centric risks demands ongoing vigilance, regular training, and a proactive security culture.

What happens when the Trojan Horse learns to knock? Stay tuned for upcoming articles that discuss the impact of AI and what this means for the future of digital security.