Margin pressure is relentless, consumer expectations are rising faster than retailers can keep up with, and global supply chain volatility continues to disrupt even the strongest brands.

Adding to this is the disruptive force of digital-first entrants such as Temu and Shein, which are prepared to undercut the market until customer loyalty shifts in their favour.

For traditional retailers, the challenge is twofold: sustaining the profitability of their physical stores while investing in digital platforms that can compete with agile newcomers.

The pace of disruption means there is little space for hesitation, and those who delay risk being overtaken before they are ready to respond.

The human side of transformation

“Retailers are having to make two worlds work at once, namely the physical store and the digital storefront,” says Chani Otto, executive associate at Change Logic.

Chani Otto, executive associate at Change Logic. Image supplied

“In many cases, those two worlds can even compete against each other, with a brand’s own online store drawing customers away from its physical outlets. That makes clarity of strategy and consistency of KPIs essential. Retailers must know exactly how performance is being measured across channels and be ready to adjust strategy constantly. The days of only annual reviews are over.”

Yet, technology alone cannot provide the answer.

Bruce Turvey, an executive at Change Logic, explains, “ERP upgrades are expensive, disruptive, and unavoidable, but they are only the enabler. Too many programmes fail because they are led from the head office or IT function. If merchants are not part of the process from the very beginning, you end up with systems that don’t reflect the reality of day-to-day retail. That’s when adoption fails, spreadsheets creep back in, and millions are wasted.”

Bruce Turvey, executive at Change Logic. Image supplied

Why merchants must lead

Merchants sit at the centre of retail transformation, holding responsibility for planning, pricing, promotions, and product selection while staying closest to consumer trends and local demands.

Their commercial instincts are sharpened by an intense focus on gross margin, and it is ultimately their decisions that shape competitiveness and determine whether a retailer can sustain an advantage in a volatile market.

“Merchants play a critical role because they are so close to the customer,” says Otto.

“They know what sells, what doesn’t, and where pricing needs to be optimised. If transformation happens without their voice, you end up with a digital platform that is slick but irrelevant. By contrast, when merchants are empowered, they can use technology to sharpen decision-making and protect margins in a volatile market.”

Turvey adds, “The mistake many retailers make is treating transformation as a technology rollout. That’s like a doctor prescribing medication without first determining the cause of the problem. Merchants must lead the process otherwise, change is imposed rather than owned.”

Lessons from Massmart

The ERP transformation at Massmart stands as a clear example of how merchant-led change delivers results.

Even in the face of pandemic disruption and social unrest, the programme was implemented on time and within budget, proving that strong alignment between business and technology can overcome extraordinary challenges.

“There was a balance between the technology engine being built and the business leaders preparing their people,” recalls Otto.

“While the technical teams focused on delivery, the business was equally focused on understanding how it would change their world. We spent time unpacking what it would mean for daily operations, identifying the necessary resources, and how leaders could prepare their teams. By the time the system went live, people were not only ready, they were excited.”

Turvey agrees, “It worked because it was co-owned. Technology, business leaders, and service providers worked as one team. That trust and alignment made the difference.”

Balancing brand identity in multi-brand environments

Large retail groups, with more than 30 brands, face an additional challenge in that standardising systems and processes is necessary for scale, but risks undermining the very brand identities that drive customer loyalty.

“The principle of no surprises is critical,” says Turvey. “You can’t impose new processes on a brand overnight. Leaders need to have transparent conversations about what will change, what the short-term pain will be, and what long-term benefits to expect. Those conversations have to come from business leadership, not IT.”

Brand strength is often the very foundation of value in retail, and when transformation undermines that, competitive edge is quickly lost. The real challenge lies in striking a balance, preserving the culture and identity of each brand, while at the same time building a stronger, more scalable platform that a group structure requires.

Building capability for the long haul

Sustaining momentum in a multi-year retail transformation requires more than ad hoc initiatives; it calls for a structured capability. A Change Management Centre of Excellence (CoE) provides that anchor, ensuring consistency across programmes, capturing lessons learned, and preventing each new project from starting at zero.

Change loses its impact when it is driven in silos by different personalities, whereas a Change CoE offers a single framework that accelerates learning and builds organisational resilience.

Turvey notes that any capability worth having must be institutionalised. “Change management is no different. By giving it a permanent home in the organisation, you stop it from being dependent on individuals and embed it as a lasting strength.”

Avoiding fatigue in multi-year rollouts

Large retail transformations often span several years, and with that comes the real risk of “change fatigue.” Sustaining momentum requires clear communication, visible progress, and recognition of milestones that matter to frontline teams.

Respecting the natural seasonality of retail is also essential, with merchants constantly working to cycle through seasons such as back-to-school, summer, winter, and Christmas. Therefore, pushing transformation during peak trading erodes credibility and goodwill.

As Otto emphasises, celebrating achievements is what keeps people motivated. “Even small milestones give people confidence and energy,” she says. “When that is combined with strong support models, namely training and supporting tools, system access, and troubleshooting when issues arise, the confidence, ownership and willingness to participate and adopt grows. That is what keeps the momentum active.”

Defining the future of retail transformation

Success in retail transformation will not be determined by who waits for perfect conditions, but by who acts with conviction. Retailers that take the pain upfront by modernising their digital foundations now, rather than deferring, will be positioned to respond faster and scale more effectively.

Those who delay will accumulate technical debt and find themselves locked out of opportunities.

As Otto puts it, transformation cannot be half-hearted. “Retailers that align leadership, merchants, technology, and bring all stakeholders along the journey, will define the next chapter of the sector,” she says. “Those who hesitate will struggle to keep up with the pace of change.”