Sign In
Get a Demo
In the ever-evolving retail industry, staying ahead of the competition requires continuous adaptation and innovation. This guide delves into various aspects of retail transformation, providing valuable insights and practical strategies to help you thrive in 2025 and beyond. Whether you're ready to transform your retail operations or just thinking about the possibilities, this guide will be useful for you.
Retail transformation is a process of redesigning a retail enterprise's processes and infrastructure to address a diverse range of objectives. Retail transformation, or retail IT transformation, encompasses a wide range of strategies and innovations aimed at improving business-critical outcomes such as efficiency, customer experience, and revenue.
When you speak with retailers, you’ll notice that retail transformation means different things to different individuals. You’ll hear everything from ERP overhauls to generative AI, demand forecasting, in-store transformation, omni-channel, no-code, and everything in between. Despite the differing approaches, all of them, invariably, want to automate a bunch of manual processes and transform experiences for internal users and customers by using technology.
In fact, transforming core retail functions like procurement, inventory, supply chain, operations, and account payables is a certain way to dramatically influence the experience of internal users and ensure better outcomes.
Digital transformation is how retail businesses can stay competitive. But, many in the retail industry think digital transformation means replacing people with machines. In fact, it’s about enhancing convenience and experiences and speeding up processes across the spectrum.
It begins with asking hard questions like ‘how do we launch new stores in 60 days, instead of 90?’ and ‘how can we increase the topline by 0.7%?’.
Consider other industries that consumers interact with frequently. Do you wait in line to deposit a check? How often do you visit a travel agent to book your holiday? A lot of the magic involved changing things that happen behind the scenes. The same is true for retail as well.
While the customer may decide to buy or drop depending on how many clicks it takes to buy on your website, they will remain if the rest of the experience of receiving the product or returning it and getting refunded is fast and equally seamless. That’s where the largest RoI for digital transformation in retail resides - changing the invisible operations that reduce customer churn and value leakage.
So, what are the fundamental building blocks for effective retail transformation? Any serious retail transformation initiative will encompass multiple dimensions, including the following:
Adopting Technology
E-commerce is expected to be a whopping $8.1 trillion business by 2026. Like it or not, every retail business has to contend with the expectations set by e-commerce, whether in meeting or exceeding them. Often, that means ripping out the innards of your core operations and replacing them with systems of collaboration that are designed for speed and agility. How well retail enterprises adopt innovations like no-code, the Internet of Things (IoT), and artificial intelligence (AI) to beef up their IT to support data-driven decision-making, internal collaboration, and automation will determine their growth and profitability ceilings.
Solving Data Exchange Friction
Excellence in retail often boils down to doing the boring and tedious things well. Talk to procurement, operations, and finance folks in retail and you will often hear about their inability to solve demand, inventory, and supply chain operations. Many of these issues stem from a lack of access to credible, cross-functional data. No amount of retail digital transformation spend will go far without a specific and clear focus on solving the data exchange friction that is essential to optimize upstream and downstream supply chain processes.
Inculcating a Culture of Agility
Lastly, retail transformation is not a once-and-done exercise. The exercise is ripe for failure unless you invest in inculcating a culture of regular training, growth, and adopting technology. The clearest wins happen at the edges and that means your frontline retail staff are adopting the tools you have built and your feedback loops work.
While the data seems to indicate that retailers are fully aboard the digital train, the reality is more nuanced. Many retailers have faced significant headwinds in their digital transformation journeys.
How retailers address the execution challenges of digital transformation will ultimately determine the success. Here are some of the biggest retail digital transformation challenges you can expect to encounter as you begin to implement the roadmap:
Resistance to change is a significant hurdle for retail digital transformation, affecting both leadership and employees. When leaders are hesitant to embrace new digital tools, initiatives can become delayed or underfunded, stalling progress. Employee resistance often arises from inertia and fear of job loss, leading to friction during the adoption process.
Integrating new technology into existing legacy systems is not foolproof. Legacy systems and fragmented software complicate integration efforts. Your digital roadmap must ensure that new tools work seamlessly with current operations to avoid disrupting customer experiences.
As digital footprints expand, so do cybersecurity threats, making data security and privacy critical concerns for retailers. Legacy systems may lack the necessary security measures to comply with evolving data protection laws. Your roadmap must have clear and documented plans to protect sensitive customer and supplier information.
Reports indicate that Digital Maturity Index (DMI) is steadily rising in retail, even for late adopters, between 2021 and 2023. While this is a healthy sign, a key question remains relevant: how to actually start with digital transformation?
If you are yet to begin your retail digital transformation journey, here is a broad framework to guide the process:
Define Digital Goals: Establish a clear, unified goal for digital transformation that aligns the leadership team and guides decision-making.
Assess Current State: Evaluate your current digital infrastructure to identify gaps and necessary solutions for a successful transformation of your retail operations.
Define Data and Analytics Needs: Identify key performance indicators and data collection methods to inform decisions and measure success against your main goal.
Invest in Technology: Allocate resources to technology improvements, such as enhancing mobile experiences and automating operations, to optimizing retail performance.
Focus on Customer Experience: Prioritize personalized customer interactions and staff training to enhance service quality and gather real-time feedback.
Transform Operations: Utilize retail software to automate processes and improve operational efficiency across various functions.
Review and Improve: Regularly assess the performance of digital tools against set benchmarks to ensure continuous improvement in your transformation efforts.
If you are not familiar with no-code, here is a primer. No-code uses visual interfaces such as drag-and-drop and pre-built components, to enable the development of enterprise applications. No-code does not need a single line of code.
If you are not convinced by the no-code approach to application development, it is anticipated that 70% of newly developed applications will utilize low-code (needs minimal coding) or no-code technologies by 2025.
No-code can be particularly useful for smaller and mid-size retail enterprises. High-quality technical talent is very much a scarce resource and retailers are fighting with technology, internet, media, SaaS, and communications companies for that small talent pool. Or, you must hire a technology and consulting firm to gain access to their technical resource pool.
In any case, this is a part of the reason digital transformation is an expensive proposition for retail. When comparing no-code platforms with traditional development methods, several key differences emerge, especially in the context of digital transformation.
No-code development platforms enable users to create applications without writing any code, using visual interfaces with drag-and-drop components. This lowers the cost of developing and maintaining applications and reduces reliance on developers. No-code app builders are also great for workflow automation, which constitutes a chunk of operational needs for retail enterprises.
In fact, a no-code platform is often a better approach than overhauling your entire ERP as part of your digital transformation roadmap because of some key features:
Intuitive Drag-and-Drop Interface: Users can easily create applications by dragging and dropping components, which simplifies the app development process.
Customizable Templates: Many platforms offer ready-to-deploy templates for common business processes, allowing users to go live quickly.
Integration Capabilities: No-code platforms support API integrations with existing applications and systems, enabling seamless data flow and connectivity.
Automation Tools: Users can define rules for automating repetitive tasks, significantly reducing manual workload and increasing operational efficiency.
Cross-Platform Compatibility: Automatically engineer applications for web, iOS, and Android, ensuring a consistent user experience across devices.
Real-Time Data Sync: These platforms allow for real-time updates and data synchronization, providing users with accurate and up-to-date information at all times.
This is why integrating a no-code app builder like Hubler can add substantial value to your digital transformation roadmap. A no-code platform can reduce the time and cost of your transformation by as much as 60%.
Adapting fast to market and competition is a differentiator. Traditional software development is sometimes too sluggish and expensive to meet these objectives. For retailers that want to innovate fast and effectively, no-code app builders offer an answer by driving retail speed and growth.
Here are some examples of workflow systems that can be quickly built and configured with a no-code app builder:
Inventory Management: No-code systems can facilitate real-time inventory tracking, reducing stockouts and overstocks.
Customer Engagement and Loyalty Programs: Retailers can create and manage customized loyalty programs using no-code platforms, enhancing customer retention through streamlined offers and rewards.
Supply Chain Optimization: No-code solutions automate procurement, vendor management, and delivery tracking, allowing teams to streamline their supply chain operations with configurable business rules.
Orchestration: No-code systems integrate seamlessly with existing retail software like ERP and PoS, ensuring data consistency and improving operational efficiency while preventing data leakages.
Most retail enterprises have unique processes for their inventory and supply chains, which makes it difficult to find off-the-shelf software that is responsive to their unique needs. ERP customization is the typical route, which makes these implementations cumbersome and expensive, taking years to deliver value.
Managing a physical retail presence involves handling tasks like stocking shelves, processing transactions, and maintaining clean environments, alongside optimizing supply chains, analyzing sales data, and creating memorable customer experiences. It's demanding, and retailers require assistance to maintain balance and stay competitive.
It’s no wonder that many have embraced no-code as part of their digital transformation roadmap. Here are some examples of retail enterprises that have successfully used no-code to transform their operations:
Retail Operations Automation: Giva, an omnichannel jewelry brand in India, struggled to customize its ERP system quickly enough for its rapid growth. They were relying on spreadsheets for many operations. By adopting a no-code platform, they automated complex operations and finance workflows, enhancing collaboration among teams and reducing inefficiencies. From New Store Openings to Lease Administration, they automate core multi-retail operations processes on Hubler’s no-code platform.
Inventory Management: Straightup Collective faced challenges with manual inventory tracking and human errors using traditional methods like Excel. They implemented a no-code application that automated cost calculations for new items, resulting in a 75% reduction in errors and a 30% increase in operational efficiency.
Procurement Automation: Licious, a meat supplier, needed a tailored solution for seafood procurement that their existing processes couldn't provide. They transitioned to a no-code platform, enabling their procurement team to move away from inefficient communication methods to a mobile application that improved data synchronization and vendor performance visibility.
Supply Chain Optimization: Mission Bicycle Company aimed to enhance customer customization of bikes but faced delays with a paper-based system. By creating an order management app through a no-code platform, they achieved a 500% productivity increase and saved 45% in weekly work hours, improving customer satisfaction.
ERP Integration and Extensibility: Kinetic Events required a custom ERP solution for efficient event and employee management. Utilizing a no-code platform, they developed a user-friendly portal that streamlined staffing and job assignments, transforming their operations and eliminating reliance on cumbersome spreadsheets.
Read more about these no-code success stories in retail.
How long does a typical retail digital transformation initiative take?
The timeline for digital transformation can vary widely based on the scope of the project, but typically expect it to take between 9 months to 3 years. If your transformation roadmap includes an ERP re-platforming, expect it to be closer to 2 years.
What are the cost implications for retail digital transformation?
The timeline for digital transformation can vary widely based on the scope of the project, but typically expect it to take between 9 months to 3 years. If your transformation roadmap includes an ERP re-platforming, expect it to be closer to 2 years.
How do I measure the success of a digital transformation initiative?
Define the preferred outcomes of the transformation upfront and ensure each outcome is mapped to a clear KPI. Typical key performance indicators (KPIs) include increased sales, improved customer satisfaction, and reduced operational costs.
What role does employee training play in digital transformation?
A big one. Employee training could be the most important lever that tips the success of your transformation in your favor. If employees do not adopt all your new tech or are not ready to iteratively improve existing processes, you will be in trouble.
What role can no-code platforms play in your digital transformation?
Again, a big one. A no-code platform is akin to Thor’s hammer. Just like the Mjolnir can level obstructions with one blow, a no-code platform can solve seemingly obstinate challenges with seamless automation.
.jpg)
Please submit your details and our Product Consultant will connect with you to understand your needs.
