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Futuristic Approach to the Retail Operating Model

By Ashutosh Kumar
Retailers must adopt a transformation strategy that goes beyond cost-cutting measures. Even more catchy subtitle

According to Mckinsey, retailers are focusing more on the customer-centric approach, but several traditional retailers are yet to alter their business practices.

To thrive in today's consumer marketing industry, businesses need to rethink their operational strategies to succeed. And the key to success in the following five years will be figuring out the best way to organise, steer, and employ.

There is no answer to the question of the best retail operating model. However, there are a few key factors that all successful retail businesses should share.

Firstly, they must have a clear understanding of their target market and what their needs are. Secondly, they should have a well-defined business strategy that considers the competitive landscape and the company’s strengths and weaknesses. Finally, they should have a robust and efficient operational model for retail that can adapt to changing market conditions.

The definitive explanation of the Retail Operating Model is the same. It is the best way to manage a retail business because it is designed to help retailers optimise their operations, improve their customer experience, and grow their businesses.

It is a comprehensive framework that covers all aspects of a retail business, from store operations and merchandising to customer service and digital marketing.

The retail operating model's future insight has helped countless retailers to improve their businesses, and it can do the same for you too. If you are browsing to take your retail business to the next stage, Growth Jockey has the answer for you : The Retail Operating Model !

What is a Retail Operating Model?

The retail industry is strained as consumers shift their spending in experiences over things. In response, retailers are finding ways to become more efficient and agile with their customers. So, a straightforward way to do this is to adopt a new retail operating model.

A retail operating model is a set of processes and functions a retailer should use to run its business. It includes everything from the fulfilment of orders to handling customer service.

There are a few different retail operating models, but the two most common are the centralised and decentralised models.

Centralised Model

In the centralised model, all decisions are made at the corporate level. It is efficient because it allows economies to scale and standardise processes.

Decentralised Model

In the decentralised model, decisions are made at the store level. It is more agile and responsive to market changes, but it can be less efficient.

Other types of retail operating models

Companies use retail operating models in different ways. The most standard practice is to use a franchise model. In this model, the company sells the rights to use its brand and operating model to independent business owners. Fast-food restaurants and hotel chains are the users of this model.

Another standard retail operating model is the company-owned store model. The company owns and operates all the retail locations in this model and is most common for grocery stores, department stores, and other retail stores.

The third type of retail operating model is the hybrid model. In this, the company owns some retail locations and franchises. This model is most common for companies with a mix of company-owned and franchise locations.

No matter which retail operating model a company uses, the goal is to generate profits and achieve growth by selling goods and services to customers.

Why is the retail operating model necessary for business?

A retail operating model is a framework that outlines how a retailer will operate to deliver its strategic objectives. It covers all aspects of the business, from 'how products are sourced and delivered' to 'how they are priced and promoted.'

These models balance three things: people, processes, and technology. By aligning these three elements, retailers can create a seamless customer experience, optimise their operations, and drive growth.

A well-designed retail operating model by Growth Jockey can enable a retailer to be agile and responsive to changes in the market while still delivering on its brand promise. It is a critical tool for any retailer looking to stay ahead of the competition.

There are many different elements to consider when designing a retail operating model. The first step is to identify the company's goals and objectives. Once these are clear, the next step is to frame the company's current processes and how to upgrade them.

Finally, the company must decide which technology and systems will be needed to support the new model. While a retail operating model can be complex, the benefits are clear. A well-designed model can help a retailer to improve its efficiency, effectiveness, and bottom line.

Perks of Retail Operating Model in business

There are many benefits to a retail operating model. The most crucial advantage of a retail operating model is that it can help a retailer to automate business processes and improve overall performance.

Besides this, the model has various other benefits that help businesses to go with the futuristic approach:

  • Direct access to customers and customer empathy

  • Higher Margins

  • Great supply options

  • Less complex

  • Highly efficient for each retailing process

  • Constant innovations

How to improve the retail operating model?

There are many ways to improve your retail operating model.

  1. One of them is to focus on customer experience and ensure a seamless experience from scratch to the end.

  2. Another way is to optimise your inventory management. This will ensure that you always have the right products in your accumulation.

  3. You can also work on automating or streamlining your back-end operations and ensuring that your team is structured and systematic.

According to Growth Jockey, the most successful and online smart retailers are now following the more sophisticated operating model. They are using automation and streamlining to take care of monotonous tasks like processing orders and payments. By doing so, they can focus on more decisive things like marketing and customising their customer service.

Although there are other ways to automate an online retail business, e-commerce is the most popular way, as customers can shop at any time and from the comfort of their homes.

Finally, you can also use data and analytics to come up with different strategies to improve your retail operating model and ensure the smooth processing of your business.


Most retailers have already started their digital transformation journey using a robust retail model. If you haven’t made the necessary changes yet, the above-listed methods can help your business immensely.

In the past, the traditional approach was to have a central office controlling all aspects of the business. This approach for business is no longer feasible in the modern world because it is difficult to make standard practice.

Instead, a more decentralised system is becoming popular among retailers as it is more convenient. We at Growth Jockey understand this and are always devising new systems which follow the decentralised approach to help your business grow.

The future of the retail operating model will continue to move in this direction, and we help you to build a robust operating plan. Additionally, we allow for more customer interaction and engagement by allowing more flexibility and customization.

At Growth Jockey, we are fully committed to developing customised operating models that effectively address the critical challenges faced by our clients across various industries. Irrespective of your company's size, whether it's a small-scale enterprise or a large corporation, you can now benefit from our tailored solutions.
Take the decisive step towards unlocking the next level of growth for your brand by reaching out to us today!

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10th Floor, Tower A, Signature Towers, Opposite Hotel Crowne Plaza, South City I, Sector 30, Gurugram, Haryana 122001
Ward No. 06, Prevejabad, Sonpur Nitar Chand Wari, Sonpur, Saran, Bihar, 841101
Shreeji Tower, 3rd Floor, Guwahati, Assam, 781005
25/23, Karpaga Vinayagar Kovil St, Kandhanchanvadi Perungudi, Kancheepuram, Chennai, Tamil Nadu, 600096
19 Graham Street, Irvine, CA - 92617, US