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Unpacking Scalability: How It Differs for Emerging Versus Established Retailers

Man with a tablet and a rocket being launch from it

by Jesta I.S. | October 27, 2023

Whether you’re an emerging retailer with plans for rapid growth or an established retailer operating on a legacy system, the need for a scalable foundational system is universal. The concept of scalability can take on different meanings, however, depending on your business’s current stage and goals. This blog explores what scalability means for each of these business types in the retail industry and why it remains vital for both.

For the Emerging Retailer Eyeing Rapid Growth

For emerging retailers with a focus on quick growth, scalability is crucial for adaptability and expansion. These businesses are often opening new stores and reaching into new markets. A scalable foundational system offers:

Data Consistency: One version of reliable enterprise data for better inventory management and customer relations.
Performance: A guarantee that the system can easily manage increased demand without requiring a complete overhaul.
Seamless Integration: The ability to integrate with third-party applications, making it easy to obtain additional functionalities.
Cost-Efficiency: The flexibility to reduce the financial burden associated with scaling up.
Adaptability: The power to support multiple channels and easily incorporate emerging technologies like AI and blockchain.

These essential capabilities of a scalable foundational system will keep your business agile and ahead of your competition.

For the Established Retailer Operating on a Legacy System

For established retailers operating on legacy systems, scalability isn’t so much about rapid expansion as it is about agility, efficiency and modernization. These businesses usually operate on tight budgets and have little intent to increase their physical store count.

In this case, a scalable system provides an organized approach to addressing “technical debt,” letting these businesses modernize incrementally. This step-by-step process allows for the gradual replacement of outdated systems with newer, more efficient alternatives while adhering to budget constraints.

Scalability here also ensures adaptability to unexpected challenges or opportunities. It guarantees that your business can integrate new customer engagement strategies or third-party solutions, even when operating on limited resources.

A Tailored Approach to Scalability

Scalability is the engine that will drive your retail aspirations forward. For those on the verge of expansion, it offers a roadmap for growth and technological evolution. For established players, it serves as a tool for modernization and adaptability. Regardless, a scalable foundational system is key to long-term sustainability and success in a competitive marketplace.

Understanding your specific needs and business stage will help you choose a foundational system that’s not just a technological asset, but a strategic one. Make sure it’s part of your next technology decision.


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