Future Retail Operating Model

Retailers need to rethink their operating models to engage customers and maintain profitability. We help retail clients develop the right model for their specific aspirations and challenges.

Key challenges

With customers rapidly becoming less loyal and more demanding, traditional retail operating models cannot maintain competitive advantage or engage customers meaningfully. To do so, retailers now need to differentiate themselves in a crowded market, innovate amidst disruptive technology, and put the customer at the heart of all channels and propositions. What’s more, they need to do all this while dealing with margin challenges and complex cross-functional processes. This means answering questions like:
  • At what point in the digital maturity curve should online channels and more traditional channels (stores, contact centres, etc.) come under the same ownership?
  • Who owns the customer experience in the future retail landscape? In a seamless multichannel world, who should govern the various elements of the customer experience and shape the customer proposition?
  • How is increasing demand for flexibility and choice in delivery and collection methods affecting how the direct-to-customer supply chain is organised and governed? Should it be set up as a cost centre or as a key strategic asset?
  • What organisational capabilities and structures are needed to mine, analyse and drive decisions from vast amounts of data around product and customers, much of it real time?
  • How do customer-facing retail functions and IT need to be aligned to develop IT applications and services that both respond quickly to advances in technology and create engaging digital presence?

Our solution

  • There is no “one size fits all” solution to shaping a retail operating model. Every retailer has its own challenges and idiosyncrasies, and needs its own operating model – one that will enable tomorrow’s aspirations while supplying today’s foundation capabiliti
  • We work in partnership with our clients to quickly understand their key challenges, and to design a tailored operating model that is fit for future growth and agile enough to support change.
  • An operating model is much more than a document: it needs to be as much about organisation-wide mobilisation and alignment as it is about fact and structure. Our approach therefore centres on cross-functional collaboration and alignment, using our Accelerated Solutions Environment capability when appropriate. 

Why Capgemini?

Capgemini is a leader in retail consulting, having worked with 27 of the world’s top 30 retailers. Our retail experts are experienced at working strategically with CXOs and on the ground with business functions to design and implement operating models. Capgemini’s retail team work closely with colleagues specialising in organisation design and enterprise performance management to design the solutions that best fit our clients’ needs.
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