How leading retailers are using data and technology to redefine the role of the physical store.
The role of the brick-and-mortar store has shifted fundamentally. No longer just a point of transaction, the modern store acts as a critical node in a broader omnichannel retail strategy, serving as a fulfillment hub, an experience center, and a source of vital customer data.
In this session, retail leaders discussed how they are navigating this evolution. Hosted by Andy Tudor of Clect, the panel featured Guy Tambling (IT & Ops Director, TFG London), Natalie Quinn (Holland & Barrett), and Carl Hayden (Founder, The Electric Bike Shop). Alongside technology partners OneStock and Merkle, they explored practical applications of connected retail—from unlocking trapped inventory to empowering store associates with digital tools.
The consensus is clear: while digital channels provide scale, physical stores provide the trust, immediate gratification, and brand immersion necessary for long-term growth.
Key Takeaways
The panel highlighted several crucial elements for executing a robust omnichannel retail strategy:
- Unified Stock Increases Margins: Making store stock visible to web customers allows retailers to sell through inventory at full price rather than marking it down or sending it back to a distribution center (DC).
- Gamification Drives Adoption: TFG London successfully encouraged store staff to fulfill web orders by “gamifying” the process, turning order claiming into a competitive and rewarded activity.
- Empowered Associates Sell More: Holland & Barrett found that equipping staff with tablets for inventory checks and allergen information increased basket size and conversion rates.
- Physical Presence Builds Trust: For high-ticket items like electric bikes, the physical store is essential for addressing “what if” scenarios and post-sales support, which builds brand reputation.
- Data Must Be Actionable: Collecting data is only useful if it informs buying cycles or helps staff personalize the immediate customer interaction.
The Challenge: Trapped Data and Disconnected Inventory
A primary barrier to a successful omnichannel retail strategy is the isolation of assets. Data often lies dormant in operational systems, and inventory is frequently “trapped” in silos.
For TFG London (owning brands like Phase Eight, Hobbs, and Whistles), the challenge was seasonal stock allocation. Best-selling lines would sell out in the central DC while units sat unsold in remote store locations. Without unified inventory visibility, the business missed sales opportunities despite owning the stock.
Similarly, Holland & Barrett faced the challenge of maintaining high-touch service standards amidst a pandemic. Customers needed complex health advice and product information that wasn’t always easily accessible to staff on the floor, especially when managing curbside interactions or social distancing.
What Good Looks Like
In a mature omnichannel retail strategy, technology renders the complex invisible to the customer.
- For the Customer: They see a single, accurate view of availability. They can order online and collect in-store, or have a store ship an item to their home without knowing the origin of the package.
- For the Retailer: Inventory flows freely between channels. Stores act as mini-distribution centers, and staff operate as knowledgeable consultants equipped with real-time data.
- For the Bottom Line: Sell-through rates improve, logistics costs are optimized, and customer lifetime value increases through better service.
The Approach: Unifying the Commerce Ecosystem
The panelists outlined distinct approaches to executing a seamless omnichannel retail strategy, centering on two pillars: Ship from Store technology and in-store digital enablement.
Deep Dive: Ship from Store at TFG London
To solve the issue of fragmented inventory and support their omnichannel retail strategy, TFG London implemented a Ship from Store solution. This moved them away from a traditional “waterfall” allocation model—where an order is offered to one store at a time—to a competitive model.
How it works:
- Broadcasting: When a web order is placed for an item out of stock at the DC, the request is broadcast to all stores holding that item.
- Gamification: The first store to “claim” the order gets the sale. This eliminates latency and prevents orders from sitting in a queue at a busy or understaffed store.
- Fulfillment: Staff pick, pack, and label the item using a dedicated interface. A courier collects these parcels daily.
The Impact:
By leveraging ship from store, TFG London saw an immediate uplift in incremental sales and conversion. Crucially, this strategy reduced “terminal stock” (inventory left over at the end of a season). Because stores could sell their specific inventory to the entire web audience, the business avoided costly returns to the DC and deep markdowns, protecting margins.
Deep Dive: In-Store Clienteling at Holland & Barrett
Holland & Barrett focused on enhancing the customer experience through staff empowerment. Partnering with Merkle, they deployed in-store tablets to help associates navigate their complex product range.
Key capabilities included:
- Allergen & Product Info: Staff could scan barcodes to instantly answer difficult questions about ingredients, building consumer trust.
- Endless Aisle: If a product was missing from the shelf, staff could check enterprise-wide inventory and save the sale.
- Bundle Selling: The app suggested complementary products based on ailments (e.g., pain relief plus prevention), helping staff build larger baskets naturally.
This focus on the store experience proved vital during lockdowns, effectively maintaining their omnichannel retail strategy even when utilizing curbside service and “queue busting” for customers waiting outside.
Deep Dive: Service as a Strategy at The Electric Bike Shop
For The Electric Bike Shop, the omnichannel retail strategy is driven by the high value and technical nature of the product. With an average transaction value around £2,500, customers require reassurance.
Carl Hayden explained that while the website acts as a shop window driving the sales funnel, the physical store is where trust is established. The ability to physically inspect the product and know that a local workshop exists for repairs handles the customer’s fear of “what if it goes wrong.” Here, the strategy involves using data not just for marketing, but to inform the 18-month buying cycle, ensuring the right technical products are available in the right locations to meet predicted demand.
Practical Implementation Plan
Based on the panel’s experiences, retailers looking to modernize their omnichannel retail strategy should follow these steps:
- Unify Inventory Visibility: Ensure your view covers DCs, stores, and suppliers. You cannot sell what you cannot see.
- Gamify Operations: If asking store staff to fulfill web orders, create a reward structure or gamified system (like TFG’s “fastest finger first”) to ensure buy-in and speed.
- Equip the Workforce: Provide handheld technology that gives staff the same level of information a customer has online. This supports the delivery promise you make to customers.
- Leverage Store Downtime: Use quiet periods in physical retail locations to process online orders, turning fixed operational costs into productive fulfillment activities.
- Qualify the Customer: Use data capture at the point of sale (KYC) to understand why the customer is buying. This qualitative data is essential for accurate future forecasting.
Next Steps
The convergence of digital and physical retail is no longer optional. Whether it is reducing markdowns through better inventory orchestration or increasing basket size through assisted selling, the technology exists to make these strategies a reality.
To learn more about how order management can serve as the backbone of your omnichannel retail strategy, explore our guide to omnichannel excellence or review the TFG London case study in detail.
FAQ
Does Ship from Store increase delivery times for customers?
Surprisingly, it often decreases delivery times. In the model described by TFG London, broadcasting orders to all stores allows the location with the capacity and stock to claim and process the order immediately, often within an hour or two. This can be faster than a traditional allocation to a single store that might be understaffed or busy.
How do you manage delivery costs when shipping from multiple stores?
While shipping from multiple locations can theoretically increase fulfillment costs compared to a centralized DC, the incremental cost is often marginal compared to the benefits. The “payback” comes from selling full-price stock that would otherwise be marked down or require costly reverse logistics to return to a warehouse.
What is an Order Management System (OMS)?
An Order Management System (OMS) is a platform that tracks sales, orders, inventory, and fulfillment. In an omnichannel retail strategy, it acts as the “brain,” connecting your ecommerce site, physical stores, and warehouses to ensure you can fulfill orders from the most efficient location.
What is the benefit of “gamifying” order management for store staff?
Gamification addresses the latency problem in order fulfillment. By allowing stores to compete to “win” the order, retailers ensure that the store most eager and able to fulfill the request does so. This improves speed and engages staff, especially when linked to a bonus or incentive scheme.
Can these strategies work when stores are closed to the public?
Yes. During the pandemic, retailers like TFG London and Holland & Barrett used “dark store” or “dark aisle” fulfillment. Staff were brought in specifically to pick and pack web orders or facilitate curbside pickup, keeping inventory moving even when the shop floor was closed to browsing customers.
How does technology support complex product sales in-store?
For retailers with complex inventories, like Holland & Barrett, mobile apps provide staff with instant access to detailed product data, such as allergens and ingredients. This gives associates the confidence to offer accurate advice and allows them to suggest relevant product bundles based on specific customer needs.
Why is the physical store important for digital growth?
Physical stores act as trust-builders and service hubs, serving as a vital touchpoint in any high-value omnichannel retail strategy. As noted by The Electric Bike Shop, the ability to visit a store for repairs or advice (“what if” scenarios) gives customers the confidence to purchase. Furthermore, stores can significantly lower the cost of customer acquisition and serve as efficient nodes for local distribution.
Do customers need to know their order is coming from a store?
Generally, no. Retailers have found that customers are indifferent to the origin of the package as long as the delivery promise is met. TFG London experimented with advising customers of store fulfillment but found it unnecessary; a seamless, “blind” fulfillment process works best.
