Retail reinvented: The business models for future success

Our analysis of the top 100 retailers reveals where you can find your reinvention advantage

Seismic transformation across the retail landscape is being driven by shifts in customer preferences, regulatory changes, skills shortages and disruptive technologies. To help survive and thrive in this environment, companies can focus on reinventing their business models and embracing new ways of creating and capturing value.

But how do you reinvent your business model? What key characteristics, structures and practices can define the winners of the future? And what are good examples of retail companies that are already leading the way?

Our holistic analysis of the retail industry answers those questions. Based on performance data for the National Retail Federation’s (NRF’s) Top 100 Retailers from 2019-2022, we’ve identified five distinct business archetypes driving the core of today’s large-scale transformation:

These retail giants use speed and innovation to expand their operations and achieve a decisive scale advantage over competitors. They offer a vast array of products and services, leveraging their logistics knowledge and customer base to enter adjacent industries and create global partnerships. A customer-focused commitment to convenience and ease has helped them to excel, helping customers conveniently access everything they need in one place.

Focusing on catering to a specific segment of the market, these retailers offer specialized products and services that can meet the needs and preferences of a particular audience. They continuously adapt and innovate their product offerings and marketing strategies, building a strong brand identity and loyal customer base.

These retailers prioritize creating unique and memorable customer experiences, backed by products and services that embody their corporate ethos. They invest in strong brands that psychologically engage customers, using innovative marketing techniques that resonate with and build their target audiences.

At the forefront of introducing new and creative products and services to the market, these companies use the latest technologies and ideas to start trends and push industry boundaries. They invest in research and development and innovate in areas that extend beyond products to include their business model and supply chain.

Retailers who aim to provide better value to their customers by offering a broad assortment of products at extremely competitive pricing. They use efficient supply chain management and basic store designs to help maintain profitability, and aggressively expand their store footprint to increase their presence and accessibility.

The future of retail will likely be shaped by the evolution of these archetypes. Each has strengths and challenges, requiring different strategies and investments to succeed. Many of today’s leading companies are already driving innovation at scale through strategic partnerships and collaborations, being faster to market, more agile and more innovative. The successful retailers will be those who use the power of platforms and ecosystems to fulfill customer needs while creating value beyond what they can achieve alone.

In this report, we explore each archetype in detail, highlighting key success factors, reinvention advantages and leading practices from top retail companies.