Operating model design for retail businesses focuses on resolving who owns the customer and how commercial decisions are made when channel interests conflict — the structural problem that drives margin erosion in most omnichannel retailers.
Designing an operating model for a retail business requires resolving who owns the customer and how commercial decisions are made when channel interests conflict.
In most retail businesses, the operating model was designed for a single-channel world and has been adapted — rather than redesigned — for omnichannel delivery. Buying, merchandising, marketing and store operations each have their own accountability frameworks with no shared accountability for the customer outcome that drives commercial performance.
Loop Consulting Group designs operating models that establish clear accountability for customer outcomes across channels. In retail, this means:
Commercial accountability alignment. The operating model needs to define how commercial decisions — pricing, inventory, promotions, markdown — are made when channel interests conflict.
Cost-to-serve management. Head office functions in retail tend to grow faster than revenue. The operating model needs to define what head office functions are genuinely value-adding and what can be reduced without affecting commercial performance.
Store operations capability. The operating model needs to define the capability framework for store management — what skills are required, how performance is managed, and how the business develops the store leaders it needs.
Contact Loop Consulting Group at [loopbc.com.au](https://www.loopbc.com.au) to discuss operating model design for your retail business.
Loop Consulting Group works with Australian businesses scaling from $5M to $50M. If this question reflects a challenge you're facing, let's talk.