Part 5.
Lean retail: how to survive a downturn without sacrificing CX
In tough times, efficiency isn’t a luxury, it’s survival.
Retailers are under pressure to control costs, manage risk AND still deliver exceptional customer experiences. But the old trade-off (cutting service to save money) no longer works! Today’s customers are less tolerant of delays, broken promises or inconsistent experiences. If you scale back too far, you risk losing them for good. That’s why many retailers are turning to Order Management Systems (OMS) not just as an operational tool, but as a resilience strategy.
What lean retail really means
Lean retail isn’t about doing less, it’s about doing the right things, more efficiently. McKinsey notes that cost-cutting in retail is shifting toward “tech-enabled transformation”, where automation and smarter systems deliver lasting savings without harming service levels.
It’s really about doing the right things, more efficiently. A modern OMS supports this by helping retailers:
- Automate routine tasks like payment validation, stock updates, and returns processing
- Route orders to the most efficient location for fulfilment
- Maintain visibility and accuracy even with leaner teams
- Keep CX consistent across online and in-store channels
At the same time, UK customer satisfaction has hit its lowest point since 2010, with 78% of people frustrated by the quality of service and long wait times (The Guardian). Clearly, cost-cutting that affects service quality comes at a price.
According to Forrester’s 2023 European Customer Experience Index, many European brands are struggling to meet customer expectations, leading to a decline in customer satisfaction. This trend underscores the importance of investing in customer experience, even during economic downturns.
“In a downturn, cutting corners can cost you customers. True efficiency means doing more with less—without sacrificing service.”
Examples of lean in action
During recent cost-cutting cycles, several major UK and EU retailers have reduced headcount or closed fulfilment centres, only to reinvest in technology to stabilise operations.
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Decathlon streamlined store inventory and improved local fulfilment with new stock routing logic.
- C&A invested in OMS-led returns automation to offset rising labour costs.
While these brands don’t always broadcast their OMS strategy, the message is clear: being lean doesn’t mean being slow.
How OIL helps lean teams thrive...
During recent cost-cutting cycles, several major UK and EU retailers have reduced headcount or closed fulfilment centres, only to reinvest in technology to stabilise operations.
OIL gives lean retailers the infrastructure to compete. It enables:
- Smarter stock usage and order routing
- Faster onboarding of fulfilment partners or local stores
- Fewer service calls due to better accuracy and tracking
- The flexibility to adapt when costs or consumer habits shift
It also empowers staff with the tools they need to do their jobs well. When systems are clunky, slow, or disconnected, it’s not just inefficient, it’s demotivating. Giving colleagues technology that works improves both productivity and morale, which leads to better service, happier customers and stronger retention.
In downturns, every small advantage matters
With the right OMS, you gain the agility and control to stay responsive, even with reduced resources. Lean doesn’t mean cutting corners. With OIL, retailers can reduce overheads, boost efficiency and still deliver a standout experience. Because survival today isn’t just about cost, it’s about capability.
Want more ways to cut costs without compromise?
Read the other blogs in our OMS cost series for practical strategies retailers can use today.
