By Dr. Nguyen Vu Thuan – Founder of PureHigh Commercial Excellence Institute
By Dr. Nguyen Thuy Ngoc – PhD AI and Data Science
Last January and February 2026 entering into lunar new year, I and my family spent quite some time in 3 largest retailers in both the old Districts 7 & 2 to shop. Hardly for me and my family to browse the aisle to find the right items and quality for all the necessities for Tet. Similar with my relatives and close friends, the problem of assortment, display, management and services impact a lot on customers shopping basket and satisfactions especially peak season Jan and Feb. One of the marketing director of the largest retailer in Vietnam has met me for 3 hours in Cafe from 8pm to 12am to discuss the best ways to do the dynamic strategy and marketing for his retail chain. He has the very very strong marketing background in FMCG and retail – one of the top of Vietnam in several global FMCG companies and the largest retailer. He and I have discussed a lot and we are very happy to talk on many topics, some of them are in the sharing below.
Looking beyond, Retail management in 2026 and further till coming 2030, Retail now is operating in one of the most complex environments in the history of the industry. Retailers are required to define, understand the Dynamics of their target shoppers and deliver both the store attractiveness in terms of assortment, merchandising, pricing, promotions, activities and at the same time the seamless omnichannel experiences with all the online shoppings while simultaneously managing rising operational costs, labor shortages, supply chain volatility, technological transformation, and rapidly changing consumer expectations.
Although digital commerce continues to grow, physical retail remains dominant, accounting for major share of global retail transactions depending on the categories. The real challenge for modern retailers is not choosing between physical and digital channels, but integrating them into a unified retail ecosystem in all aspects that delivers consistent value to shoppers.
Retail managers today must therefore operate at the intersection of target customer shoppers understanding, strategic business model innovation, new category management, operational excellence, data-driven decision-making, and technology integration.
This writing outlines the major challenges faced by retailers and retail managers across the following key dimensions:
- Shoppers and Consumer Behavior
- Retail Strategy and Business Model
- Category Management, Sourcing, Merchandising and Supplier Management
- Retail Operations Management
- Marketing and Customer Engagement
- HR Management and Retail Leadership
- Technology and Data Management
- Financial Management and Profitability
- Sustainability, Security and Risk Management
1. Challenges Related to Shoppers and Consumer Behavior
Consumer expectations are evolving faster than most retail organizations can adapt.
Traditional Stores and Omnichannel Shopping Expectations
Modern consumers and shoppers expect a better dynamic stores with better assortment, merchandising, dynamic pricing and promotions, activitiies and a seamless shopping journey across stores, e-commerce platforms, mobile apps, and social commerce. Customers may discover a product online, check availability in store, purchase via mobile, and return in store and how to customize and personalise the offers for shoppers.
However, many retailers still operate fragmented systems, creating disconnected customer experiences and inconsistent inventory visibility.
Increasing Price Sensitivity
Inflation and economic uncertainty have made consumers more price-conscious. Retailers must offer competitive prices while maintaining profitability and managing rising operational costs.
Demand for Personalization
Consumers increasingly expect:
- Personalized product recommendations
- Tailored promotions
- Individualized marketing messages
- Customized shopping experiences
Retailers must leverage data analytics and AI to understand individual customer preferences.
Declining Brand Loyalty
Consumers today easily switch between brands and retailers due to digital transparency and online comparison. Building long-term customer loyalty has become significantly more difficult.
Retailers must therefore create value-based relationships rather than purely transactional interactions.
PureHigh Experts together with Marketing Experts in Foods, FMCG, Households and Retail have studied the Shoppers Profile, Demands, Shoppers needs, Shopping Mission, Shopping Journey, … from which Retailers and Foods, FMCG, Households can build the Dynamic Stores and a seamless shopping journey across stores, e-commerce platforms, mobile apps, and social commerce and can make a personalised offering more attractive.
2. Challenges in Retail Strategy and Business Model
The traditional retail model is being fundamentally disrupted.
Omnichannel Business Model Transformation
Retailers must integrate multiple channels including:
- Physical stores
- E-commerce
- Marketplaces
- Social commerce
- Direct-to-consumer (DTC) channels
- Physical stores
- E-commerce
- Marketplaces
- Social commerce
- Direct-to-consumer (DTC) channels
Many organizations struggle to unify these channels operationally and strategically.
Competition from Digital and Platform Players
Retailers face intense competition from large e-commerce platforms such as Amazon in the US,…Tiktok, JD, Taobao, Tmall,… in China, Shoppee, Lazada, Tiktok,… in South East Asia…. and rapidly growing direct-to-consumer by brands.
These competitors often operate with lower operating costs and stronger digital capabilities.
Market Saturation
In many product categories, retailers compete in crowded markets where differentiation is quite difficult.
Price wars and promotional competition continue to erode margins.
Store Network Optimization
Retailers must determine:
- Which stores to close
- Which stores to expand
- Which stores to transform into fulfillment centers
Many retailers are turning physical stores into last-mile fulfillment hubs to support online orders and delivery.
PureHigh Business Model Transformation Experts together with Retail Experts have studied how Retailers transform their current business model to deliver the New Retail Strategy and Business Model to capture the New Retail Market Share.
3. Challenges in Category Management, Sourcing, Merchandising and Supplier Management
Merchandising remains the core of retail competitiveness, but managing assortments and suppliers has become more complex.
Demand Forecasting Complexity
Retail demand is increasingly unpredictable due to:
- Viral trends
- Social media influence
- Weather changes
- Economic volatility
Traditional forecasting models often fail to capture these dynamics.
Inventory Inaccuracy
Retailers frequently face:
- Stockouts
- Overstocking
- Inventory shrinkage and expiry
- Data inconsistencies across systems
Accurate inventory management across multiple channels remains one of the industry’s most difficult challenges.
Supplier Dependence and Supply Chain Risk
Global supply chains have become vulnerable to:
- Geopolitical tensions
- Logistics disruptions
- Transportation cost increases
- Raw material shortages
Retailers must diversify suppliers and develop more resilient sourcing strategies.
Assortment Complexity
Retailers must constantly balance:
- Product variety
- Shelf productivity
- Inventory turnover
- Customer choice
Too many SKUs but too little assortment images increase customers dis-satisfaction, operational complexity and inventory costs.
PureHigh Retail Experts have studied the New Category Management Model to capture these above challenges in both Consumers Shoppers Dynamic and New Retail Model Complexity and the New Joint Business and Category Management Model to face these challenges better.
PureHigh Retail Experts (Dr. Thuan and Mr. John Glover) also build the Training in Sourcing, Merchandising, Negotiating and Supplier Management to help retailers to overcome these challenges.
4. Challenges in Retail Operations Management
Retail store operations remain the execution engine of the business.
Operational Efficiency
Retailers must streamline processes such as:
- Inventory replenishment
- Pricing updates
- Store merchandising
- Order fulfillment
- Returns management
Manual processes are increasingly replaced by automation and AI-enabled systems.
Inventory Visibility
Achieving real-time inventory visibility across:
- Stores
- CW and Distribution centers
- Online platforms
is still a major operational challenge.
Retail Theft and Shrinkage
Retail theft, fraud, and administrative errors continue to cause major losses.
Logistics and Last-Mile Delivery
The growth of e-commerce requires retailers to manage:
- Faster delivery expectations
- Complex fulfillment networks
- Rising logistics costs
Supply chain agility is now a key competitive advantage.
PureHigh Retail Experts have studied the New Store Management Model to capture these above challenges to face these above challenges better.
5. Challenges in Retail Marketing and Customer Engagement
Marketing in retail has shifted from mass communication to data-driven personalization.
Omnichannel Marketing Integration
Retailers must coordinate marketing efforts across:
- Physical stores
- Digital platforms
- Social media
- Mobile apps
- Email and CRM
Consistency in messaging and promotions is critical.
Customer Engagement and Experience
Retail success increasingly depends on delivering superior customer experiences, including:
- Store atmosphere
- Service quality
- Personalized recommendations
- Seamless checkout processes
Measuring Marketing ROI
Retailers must evaluate the effectiveness of:
- Digital advertising
- Loyalty programs
- Promotions
- Influencer campaigns
However, linking marketing investments directly to sales results remains challenging.
PureHigh Retail and AI Experts together with Marketing Experts in Foods, FMCG, Households and Retail have studied the Shoppers Profile, Demands, Shoppers needs, Shopping Mission, Shopping Journey, … from which Retailers and Foods, FMCG, Households can build the Dynamic Stores and a seamless shopping journey across stores, e-commerce platforms, mobile apps, and social commerce and can make a personalised offering more attractive.
6. Challenges in HR Management and Retail Leadership
Retail is one of the most labor-intensive industries.
Labor Shortages
Retail organizations globally and regionally in South East Asia and Vietnam face shortages in:
- Excellent Store Managers
- Store associates
- Warehouse workers
- Logistics staff
Many retailers struggle to recruit and retain qualified employees.
High Employee Turnover
Retail employee turnover rates remain among the highest across industries. High turnover leads to:
- Increased recruitment costs
- Training expenses
- Service inconsistency
Workforce Upskilling
Retail employees must increasingly understand:
- digital tools
- omnichannel operations
- data-driven decision making
Leadership must focus on continuous training and talent development.
Leadership Complexity
Retail leaders must balance:
- operational efficiency
- customer experience
- financial performance
- employee engagement
This requires strong commercial leadership capability.
PureHigh Retail Experts have built the Leadership Training & Coaching Programs – deep rooting from personal leadership with purpose, passion,…to team and organisational leadership for strategy and new business model awareness, engagement, objectives understanding and delivery.
7. Challenges in Technology and Data Integration
Technology is both a solution and a challenge for retailers.
Legacy Systems
Many retailers operate the old IT infrastructure that cannot support modern omnichannel retail.
Technical debt continues to slow innovation and digital transformation.
Data Silos
Retail data often sits in separate systems such as:
- POS • ERP • CRM • e-commerce platforms • warehouse management systems
This prevents retailers from generating a single view of the customer and inventory.
AI Implementation
Retailers are increasingly adopting AI for:
• demand forecasting • dynamic pricing • personalized marketing • automated replenishment
However, many organizations are still in the early stages of AI adoption.
Data Security and Privacy
Retailers must protect customer data while complying with increasing data protection regulations.
PureHigh and NG Square AI Experts shall bring the New AI Technology to help close these challenges and GAP especially in Data for Better decision making.
8. Challenges in Financial Management and Profitability
Retail operates on thin margins and high operational complexity.
Rising Operational Costs
Retailers face rising costs across:
• labor • rent • logistics • energy • technology investments
At the same time, intense competition limits the ability to increase prices.
Margin Pressure
Promotional competition and price wars continue to reduce profit margins. Retailers must focus on:
• category profitability • assortment optimization • cost efficiency
Capital Allocation
Retail leaders must decide where to invest:
• store modernization • digital platforms • supply chain infrastructure • AI and automation
These investments require significant capital and strategic clarity.
PureHigh Retail Experts together with NG Square AI Experts shall bring the New Process of Optimizing all the Business Units and Operations of Each Functions to improve the bottom line.
Conclusion
Retail management in 2026 and beyond till 2030 requires a New and Integrated Retail Commercial, Strategy, Leadership and AI Capability that combines Strategy, Models, Category Management, Sourcing, Merchandising excellence, Operational discipline, Technology adoption, and Leadership Effectiveness.
For PureHigh Retail Experts, Retailers that succeed in the coming decade will be those that can:
- Define and understand the target customers Shoppers Dynamics
- Builld the Store Attractiveness in Assortment, Merchandising, Promos, Activities and Services
- New Strategy and Business Model
- Integrate omnichannel operations
- Leverage data and AI for decision making
- Build resilient supply chains
- Invest in people and leadership
- Deliver exceptional customer experiences
At PureHigh Commercial Excellence Institute, we believe the future of retail leadership will depend on the ability to combine Target customers Shoppers Dynamics, Commercial excellence, Technological capability, and Strategic agility.
Retail organizations that embrace these transformations will not only survive but thrive in the rapidly evolving global and local retail landscape winning share from those who are behind. Please contact PureHigh if you would like any solutions to face these above challenges better. We are happy to serve you.
References
Dr. Nguyen Vu Thuan – PureHigh Commercial Excellence Institute.
