Running a retail business isn't as simple as it used to be. Today's customers jump between your website, social media, and store—expecting perfect experiences at every turn. But they're not getting them. A 2023 Forrester survey found that 67% of US consumers rate their brand experiences as merely "okay."
The problem stems from multiple systems that don't work together. Your store inventory doesn't match your website. Customer data lives in different places. Staff waste time reconciling information instead of helping shoppers. These disconnects frustrate customers and limit your growth.
This guide shows how leading retailers are solving these challenges to deliver the seamless experiences customers expect. You'll learn practical steps to simplify your technology, reduce costs, and set your business up for success.
The four pillars of a successful retail business model
Unified operations
Retail success today needs one central system that tracks everything—inventory, orders, and customer information—in one place. Instead of using separate systems for online sales, store sales, and office work, having everything unified prevents mistakes and helps the business grow by making better decisions.
To understand how retailers progress from operating a single channel to becoming fully unified, take a look at the Retail Maturity Model below. It outlines four stages—Single Channel, Multi Channel, Omnichannel, and Unified—showing the increasing level of integration and customer experience at each step:
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By the time a retailer reaches the “Unified” stage, they’ve consolidated all channels, operations, and customer data into a single system.
When you track inventory in one place, for example, you know exactly what products you have and where they are, in stores, warehouses, or being shipped. All retail channels (website, social media, stores) use the same inventory information. This lets you:
- Stop selling items that aren't in stock since numbers update automatically after each sale
- Let customers buy online and pick up in store, or have items shipped from stores
- Move products around based on where they're selling best
For example, clothing brand Oak + Fort made its order process three times faster by connecting online and store systems, saving many hours of work each week.
Connecting these systems, stores often see sales grow by double digits because they can adapt quickly to what customers want. Having current data, fewer system problems, and all customer information centralized means lower costs and a stronger business:
- Order management system (OMS): Combines all orders into one dashboard.
- Inventory management: Updates stock numbers automatically everywhere.
- Customer relationship management (CRM): Keeps all customer information in one location.
- Point of sale (POS): Handles store sales and connects with online systems. A unified system like Shopify POS reduces total ownership costs on average by 22% compared to competitors.
- Ecommerce platform: Runs online stores and connects with physical stores.
- Accounting/ERP: Makes financial tracking easier by automatically recording all sales and expenses.
“Most of our store locations are in destination locations where people are only visiting once a year or once every other year,” says Corey Hnat, director of marketing at Pepper Palace. “Before, when they left, we wouldn’t see them again for another year. Shopify has improved our omnichannel capabilities and allowed us to get customers into our system in store, so we can retarget them back to our website.”
Seamless customer experience
A unified commerce strategy means giving customers the same great experience wherever they shop. This means more than using the same logos and colors. Your customer service, store policies, and how you talk to customers should be the same everywhere they find you.
For example, a customer should be able to look at shoes on their phone, try them on in your store, and return them through your website—all without having to enter their information again. All customer details (what they bought before, what they like, any problems they had) can be seen by anyone helping them. A store worker sees the same information as someone answering emails, so service stays consistent.
Loyalty programs will work everywhere, too. You could have an overarching loyalty umbrella but tailor certain perks to the online audience (e.g., free shipping upgrades) and in-store audience (e.g., priority dressing room access). Customers get and use rewards no matter how they shop.
Tecovas, a western-wear brand, shows how this works in practice. Store staff can instantly see customer details and purchase history in its POS system, letting them make personalized product recommendations and track loyalty points whether someone shops online or in-store. This helped them deliver better customer service across its 30+ locations.
Data-driven decision making
With all of your retail business’ most important data available in one place, you get a 360 view of your business. You can see which channels are doing well, which promotions work best, and where you need to adjust inventory.
Here is what you can track in real-time:
- Sales across channels. Look at the money made and items sold through your website, other selling platforms, and physical stores. When you notice unusual patterns (like sudden high sales in one area), you can move inventory or change advertising spending as needed.
- How customers shop. See how people use your website, when they leave without buying, and if they come back after seeing your ads. In stores, track how long people shop and which areas they visit first.
- Inventory flow. See how fast products sell in different locations (comparing stores A and B, for example) and keep stock balanced. Get automatic alerts when items are running low so you can move or reorder products.
- How staff perform. Check how each employee is doing: their sales per shift, average sale amount, and customer feedback. This shows who might need more training or which work schedules bring the best results.
- Marketing results. See how different promotions work in each sales channel, from social media to retail signage. You can quickly adjust your message and stop using what isn't working.
In a survey of 1,000 Shopify POS customers, 61% reported spending less time on reports and analysis after switching to a unified sales system. Most saved 5+ hours monthly on these tasks. This saved time often goes toward improving retail operations or marketing, activities that can increase sales.
Flexible fulfillment
Customers want shopping to be easy. Some prefer picking up online orders in person; others like same-day delivery, and many want to return items without hassle. The more flexible you are with these options, the more you'll stand out from stores that aren't.
Brands can offer flexible fulfillment options in their retail business model, such as:
- Buy online, pick up in-store (BOPIS). Customers order online and get their items at your store—perfect for those who want things quickly without paying shipping costs. Research shows that 38% of shoppers use this option for convenience. It saves retailers on shipping and brings more people into stores.
- Ship from store. You can send online orders straight from nearby stores instead of just warehouses. This means faster delivery, lower shipping costs, and a way to sell extra items from stores that aren't as busy. Customers also get better estimates of when items will arrive.
- Local delivery. If most of your customers are in the same area, offering local delivery—sometimes even same-day—can set you apart. This works especially well in cities where customers want items quickly but don't want to travel.
- Returns anywhere. Strict return rules frustrate customers, so let them return items in stores or by mail to build trust. When customers return things to stores, they might buy something else while there. One challenge: store staff need to see all purchase information right away, even for online orders.
Our latest research found that 55% of people avoid online shopping because they feel less in control of their purchases.
Flexible delivery options help solve this by letting customers choose how and when to get their items. This helps business operations too. Shopify’s 2025 TCO Report found that one store cut 10-20 seconds off each transaction simply by making pickup easier.
How to implement a unified business model
Get the right tech stack
A unified system puts all customer data—like what they've bought, what they like, and how they shop—in one core profile. This direct customer information is usually more accurate (and better for privacy) than data pieced together from other sources alone. With all customer information in one place:
- You can suggest products and give rewards based on their complete purchase history.
- Support teams can see all past customer contacts, giving better service more quickly.
- Product teams learn which features or styles customers like (and don't like).
Extend your capabilities with integrations
While your core retail platform should handle essential operations, most businesses need specialized tools for unique needs. The key is choosing solutions that enhance your foundation rather than complicate it.
For example, Shopify offers a few ways to build upon the platform:
- POS UI extensions. Add special features to your store checkout screens. This helps store staff handle personalized experiences the same way you do online. They can check loyalty points, apply the same discounts, or handle pickups, all from one screen.
- Enterprise resource planning (ERP). A unified business model demands seamless data flow between systems. By connecting Shopify's inventory management with your ERP system, you eliminate the data silos that often separate in-store and online operations.
- Shopify apps. Add tools from Shopify's app store when you need them. Whether it's for shipping, marketing, or accounting, you can pick what you need and remove what you don't.
These tools help keep everything running the same way, whether a customer shops in your store or on your website.
Remember: every new tool you add affects your operational efficiency. Focus first on maximizing your core platform's capabilities before adding specialized solutions.
“Shopify’s unified approach to data management leads to a substantial decrease in the time and technical resources spent on maintenance, eliminating the need for middleware by up to 60%,” says Corey Hnat of Pepper Palace.
Train staff
A unified business model depends on people just as much as technology. Even the best retail tech stack won’t deliver full value if your teams don’t understand how to use it or why it matters.
Make sure staff working in your stores know how to use the new checkout systems, look up customer information, and check what items are in stock. Show them how having all customer information in one place helps them do their job better, like:
- Finding products that are sold out
- Suggesting items based on what customers bought before
- Using customers' reward points
Show your marketing team how to use customer information to send better emails and create more personal ads for both online and in-store. You can introduce them to Shopify Audiences to find new customers who are likely to buy your products, based on shopping behavior patterns across thousands of Shopify stores. Let them see how it works—like when someone buys something in the store, the customer automatically gets relevant follow-up emails.
Consider costs
When implementing a unified business model, one of the most important considerations is costs. Understand the immediate and long-term financial commitments to avoid budget overruns. That includes:
- Hardware upgrades or replacements. While many POS solutions run on everyday devices (like tablets), factor in whether you’ll need additional hardware such as new card readers, printers, or barcode scanners.
- Integration development and testing. Connecting third-party software (like ERPs, loyalty platforms, or warehouse solutions) can have upfront integration costs.
- Staff training and materials. You'll need to invest time teaching your staff how to use the new system. Retailers using Shopify POS often have 21% lower training and onboarding costs compared to those using competitor platforms.
- Data migration and cleanup. Migrating large volumes of data—customer records, transaction logs, inventory details—can be one of the most time-intensive parts of any systems overhaul. Keep in mind that competitors’ data migration costs can be up to 34% higher than Shopify’s.
Future-proof your retail model
AI and automation
AI-powered retail operations isn't just for retail giants anymore—it's becoming essential for businesses of all sizes.
A McKinsey report shows retail AI adoption growing 25% year over year since 2020, and for good reason. AI helps automate routine tasks and make smarter decisions.
When AI is built into your retail platform, you can:
- Predict inventory needs before items run low
- Spot sales trends across locations
- Prevent fraud automatically
- Make better merchandising decisions
The key is choosing technology that includes these capabilities from the start, rather than trying to bolt them on later. This ensures you're ready to take advantage of AI innovations as they emerge.
📚 Learn: AI in Retail: Use Cases and Examples
Personalization at scale
Personalization means using data to customize everything from product suggestions to special offers for each customer. For example, a store might automatically add customers' regular purchases to a cart or show items that match their style.
As people care more about privacy, stores now focus on data that customers choose to share directly. They're upfront about how they'll use this information and offer clear benefits in return, like special deals or reward points.
Social commerce integration
Social commerce lets customers buy products directly through social media platforms like Instagram and TikTok without leaving their feeds. Live video shopping events allow brands to demonstrate products, answer questions, and offer special deals in real time.
Working with social media influencers also helps brands reach new audiences in an authentic way. By tracking sales data from these different social commerce channels, businesses can measure what's working best and adjust their strategy accordingly.
Sustainability considerations
Eco-conscious consumers increasingly prefer brands that demonstrate a real commitment to sustainability through transparent practices. Companies can build trust by openly sharing details about their supply chains, including information about sourcing methods, working conditions, and environmental impact.
Offering green shipping options and eco-friendly packaging helps brands connect with environmentally aware customers, especially in retail sectors like fashion. Building partnerships focused on environmental initiatives, such as recycling programs or charitable causes, helps create deeper connections with customers who value sustainability.
Build a better retail business with Shopify
Running a successful retail business today isn't easy. Customers expect seamless shopping experiences, accurate inventory information, and personalized service whether they're shopping online or in your store. Meeting these expectations while keeping costs down can feel impossible when you're managing multiple systems.
That's where Shopify comes in. Unlike traditional retail solutions that require complex integrations, Shopify provides a single platform where ecommerce and point of sale naturally work together. This means you can spend less time managing technology and more time focusing on what matters: growing your business and keeping your customers happy.
Retail business model FAQ
What is the retail business model?
The retail business model describes buying products from manufacturers or wholesalers and selling them directly to consumers at a markup to generate profit. It includes all aspects of the store, including the products and staff, and creates an enjoyable shopping experience.
What are the 3 types of retailing?
The 3 types of retailing are:
- Store retailing: Physical brick-and-mortar locations.
- Non-store retailing: Online, catalogs, direct selling.
- Corporate retailing: Chain stores, franchises, cooperatives.
What are the 4 stages of retailing?
The 4 stages of retailing are:
- Introduction: New stores launch with fresh ideas to attract customers.
- Growth: Business expands with more locations and higher sales.
- Maturity: Sales peak but slow down due to market competition.
- Decline: Store loses popularity as customers shift to newer alternatives.
What are the three theories of retail?
The three major retail theories are:
- The Wheel of Retailing: Suggests retailers start as low-cost operators and gradually move upmarket.
- The Retail Accordion Theory: Describes how retailers alternate between specialized and general merchandise strategies.
- The Retail Life Cycle Theory: Explains how retail formats evolve through distinct stages similar to product life cycles.