Retail stores look nothing like they did a decade ago.
Walk into any department store and you’re no longer just shopping—you’re entering a living, breathing ecosystem of experiences, services, and connections. Likewise, specialty stores are shifting their focus from simply selling niche products to fostering a sense of community and becoming go-to resources for passionate customers.
This is the new reality of retail: businesses are no longer defined by what they sell, but by the relationships they foster. Stores are transforming from static transaction points into dynamic spaces that cultivate meaningful connections through technology, community, and customer experience.
All this raises the million-dollar question: How can you—whether you’re running a small boutique or a growing retail chain—navigate this radical transformation? What can we learn from retail business examples that are already reshaping the game? The answer, as it turns out, is a lot.
How today’s retail businesses are changing
These shifts aren't happening by accident—they're direct responses to changing customer expectations and the rise of unified commerce and omnichannel retail strategies. Let's examine three major trends driving retail's transformation in 2025 and how innovative businesses are capitalizing on them.
Shifting consumer expectations
Traditional retail was transactional: you have a product, I want a product, we exchange money. But today’s consumers are looking for something deeper. They’re not just buying products; they're seeking experiences that reflect their values, solve their problems, and connect them to something larger than themselves.
The data tells a compelling story: 40% of U.S. consumers say they’ve purchased something more expensive than planned because of a personalized customer experience, and 50% say personalized offers and promotions from brands they’ve interacted with improve their experience.
Take Form Nutrition as an example. When founder Damian Soong looked at the nutrition industry, he saw a market crowded with polarizing personas and brands focused solely on athleticism. "It struck me that the vegan movement wasn't just going to be a trend," Soong says. "It was really being driven by big systemic drivers: emerging effects on health, sustainability, animal welfare, global warming."
So Form Nutrition became more than a supplement company. It launched the Form Feeding Fund, providing meals to patients at Bansang Hospital in Gambia. It produced content exploring topics like intermittent fasting, stress, and holistic health.
This approach fosters an emotional connection that transcends traditional marketing. It isn't merely corporate social responsibility—it's a strategic move to build authentic relationships where customers feel they're contributing to a larger purpose. It reveals three forces fundamentally reshaping retail: shifting consumer expectations, technological innovations, and competitive pressures pushing businesses to create more meaningful value.
Technology’s role in value creation
Technology is revolutionizing retail, opening up a world of possibilities regarding understanding and serving customers. It’s now easier than ever for retailers to gather data, personalize interactions, and create seamless experiences that bridge the gap between online and offline channels.
Unified commerce platforms like Shopify are leveling the playing field, giving smaller businesses access to the kind of sophisticated capabilities that were once exclusive to enterprise-level retailers. Shopify's research shows that businesses using these platforms see a 22% reduction in total cost of ownership and can implement new capabilities 20% faster than traditional systems.

Western wear brand Tecovas, for example, extended its Shopify storefront by developing custom POS extensions that give staff instant access to customer information during checkout. This empowers them to offer a more personalized experience, accommodating complex transactions like buying boots in-store and having matching accessories shipped directly to the customers’ home.
“I've been working with Shopify on something called Split Cart, which allows us to serve our customers in a way that's seamless,” says Tecovas’ CTO Kevin Harwood.
“In the past, there’s been a little bit of transaction friction, where they may have to do two transactions. A customer purchasing an item that they're going to leave with, and another transaction for the item that they want to ship. But now with SplitCart functionality, we're actually able to do that in one single transaction.”
These technologies offer more than just convenience. By handling the heavy lifting of complex data processing, they free up businesses to focus on what truly matters: building genuine connections with their customers.
Economic and competitive pressures
The biggest hurdle that retail stores face today is the constant need to reinvent themselves.
Customer acquisition costs are rising, and competition is fiercer than ever, which means that businesses have to get creative to offer value and keep their customers coming back for more. The real competition lies in creating a rich ecosystem that goes beyond just making a sale.
When lingerie brand LIVELY opened its first brick and mortar store, they stumbled upon a game-changing discovery: customers who booked fitting sessions online spent way more than those who just walked in. By turning a regular shopping trip into a personalized experience, they transformed their store into a space for connection and empowerment.
Retailers who are winning are the ones who build platforms that encourage loyalty and repeat business. This approach reduces their dependence on pricey marketing campaigns and sets them up for sustainable growth.
7 retail business examples in practice
Let's look at seven different retail business models and how they're changing. We'll see how they're creating experiences that meet customer needs and build a sense of belonging and real relationships.
1. Department stores: From product aggregators to experience curators
Retail giants like Macy's, JCPenney, and Nordstrom are no longer merely vast spaces filled with racks and shelves. Success comes from using technology and personalization to create exciting destinations across every touchpoint.
When inventory, customer data, and transactions flow through one system, retailers can focus on what matters most: creating memorable experiences that keep customers coming back.
What makes this work is the technology behind the scenes: unified systems that give staff access to unified customer profiles and purchase history across all channels. When a loyal online customer visits the store, associates can view their preferences and past purchases, creating personalized recommendations that feel natural rather than scripted.
Plus, with systems like Shopify, department stores can offer conveniences like buy online, pickup in-store (BOPIS) or endless aisle capabilities where associates can order out-of-stock items for home delivery.
Parachute, in particular, has made BOPIS a major part of its retail business. In the past four years, the revenue attributed to BOPIS has increased by 500%. “Through Shopify, we’re able to give customers updates and provide the best experience because we have a single source of truth,” says founder Ariel Kaye.
2. Specialty stores: From niche sellers to knowledge hubs
Specialty stores find that their true value goes far beyond simply selling products. The communities they cultivate—solving problems and fostering a sense of belonging—turn customers into advocates and one-shot buyers into loyal customers.
These retail businesses are evolving into platforms far beyond their physical or digital storefronts. A running store, for instance, can become a training hub that offers guidance and support to aspiring athletes. A tea shop can transform into a cultural center, inviting customers to explore the rich history and traditions behind each cup.
Consider the approach employed by menswear brand Mizzen+Main. It operates 11 retail stores alongside a thriving website. It uses Shopify’s unified commerce platform to unify first-party data collected on its customers both online and offline, which retail associates use to personalize the shopping experience for each individual customer.
This is especially useful when shoppers come in-store to buy gifts. “When wives, girlfriends, and moms are looking for gifts, they often don’t know the difference between things like a trim, classic, or no-tuck shirt,” says store manager Trey Pritchard. “Pulling up the customer profile of the man they’re shopping for with Shopify POS quickly clears up a lot of confusion.”
Mizzen+Main’s unique approach to clienteling has paid off. With Shopify, the apparel brand has experienced a 16% year-on-year growth in retail orders anda 27% boost in retail revenue.
3. Big box retailers: From volume sellers to ecosystem creators
The big-box retail model has long thrived on a straightforward principle: stack it high, sell it cheap. But today, with consumers craving more than just bargain-basement deals, this strategy is rapidly losing its edge.
Mega-retailers are shedding their image as mere product distributors and offering various services and experiences that cater to a wider range of customer needs. The goal? To seamlessly blend online order fulfillment with the in-store experience, creating a shopping journey that's both efficient and enjoyable.
Competition from specialty stores like Mastermind Toys has necessitated this shift. With 68 stores across Canada, the toy retailer has cultivated a reputation for fun, with passionate staff—or Play Experts—sharing knowledge and delight with kids and kids-at-heart.
Bringing this personal touch online meant launching a new Shopify store that made browsing over 10,000 SKUs as fun as playing with them in-store. Mastermind Toys brand built a high-touch ecommerce experience, combining live chat with store associates, integration with its existing loyalty program, and even what Mastermind calls “Woo-hoo! HQs”—dedicated spaces in stores where customers can pick up and customize their online orders.
Mastermind Toys’ gamble paid off handsomely, with a nearly-threefold increase in conversion rate.
4. Online-first brands: Redefining retail’s purpose
Online shopping is convenient, with endless choices at your fingertips. But scrolling through a screen just doesn't compare to the experience of touching and feeling a product in person. That's why online-first brands are getting creative, using physical spaces to build deeper relationships with their customers and create a more tangible brand experience.
The "click-and-mortar" approach lets online stores bridge the gap between the digital and physical worlds, offering a richer, more engaging experience. It also caters to the 57% of consumers who want to see, touch, and feel items before they buy.
BYLT Basics, for example, has grown rapidly from a digitally native brand to a thriving omnichannel retailer. Yet, it was concerned about technical debt and slow implementation speeds when expanding into retail. “When you start adding more software and systems to the mix, it can slow down the tech stack and make it much more time-consuming to try to get the data or even just the answer to your question,” says director of retail Tyler Muzzy.
With Shopify, BYLT’s fears didn’t come true. The apparel brand scaled from one to seven profitable brick-and-mortar locations in less than a year, thanks to Shopify’s unique ability to unify POS and ecommerce on the same platform—an approach with a 20% faster implementation time relative to the market set surveyed.
“We’ve put a strong focus into utilizing multiple Shopify solutions and consolidating within their stack as we continue to expand our channel offerings,” Tyler says. “It’s saved our team a tremendous amount of time, while we’ve been able to further develop our longstanding partnership with Shopify to the BYLT loyal online and in-person.”
5. Convenience stores: From pitstop to community platform
Local corner stores are fast becoming neighborhood hubs that cater to more than just late-night cravings.
The most innovative convenience stores now offer services like mobile ordering, loyalty programs, and even local delivery. Some partner with neighborhood businesses to become true community destinations. These additional services increase foot traffic while building stronger customer relationships.
Technology is the key to this change. Convenience stores use mobile ordering apps, self-checkout, and POS loyalty programs to make things personal and keep customers coming back. Some stores are even trying out delivery and teaming up with local businesses to offer more and better meet the needs of their community.
The message mirrors what we’ve seen across other categories: connecting physical and digital operations on one platform creates a better customer experience. When you understand your neighborhood's needs, your store becomes essential—not just convenient.
6. Pop-up concepts: From flash-in-the-pan to retail laboratory
Pop-up shops are the retail world's surprise party, appearing out of nowhere, creating a buzz, and vanishing before you know it. And consumers are loving it.
For example, when founder Michelle Cordeiro Grant decided to open LIVELY’s first brick-and-mortar store in New York City, she tested the waters with a pop-up store first. Initially, the pop-up didn’t stock much inventory. She saw the store more as a place for customers to hang out and try on products before purchasing online.
Michelle quickly realized that customers wanted to leave with the products in hand. “The location operates more like a clubhouse,” she says. “But it’s also now a completely stocked shop.” She brought those insights to the permanent store when it opened.
Technology is a key ingredient in this new style of retail store. Thanks to unified commerce platforms, brands can seamlessly weave these temporary experiences into every retail channel, tracking data and personalizing experiences on the fly.
7. Discount retailers: Redefining value in a price-sensitive market
Discount retailers, once synonymous with bargain bins and no-frills shopping, are shaking off their image and proving that affordability doesn't have to mean sacrificing satisfaction.
Automated retail technologies help discount retailers personalize promotions, manage inventory, and offer customers a seamless shopping experience across both online and brick-and-mortar locations.
Tomlinson’s, a family-owned and operated holistic pet supplies business based in Austin, Texas, is a prime example of this shift. Since opening its first store in 1946, the company has grown to 18 retail locations throughout Texas, supplemented by a thriving online store—expansion that would have been impossible without streamlining operations.
The pet food retailer’s original POS system made the i-store checkout process cumbersome. Applying discounts manually slowed things down further. “You had to tap through a number of different tabs on the POS before you could check out a customer,” says Kate Knecht, owner and operator. “When you’re a team member working 40 hours a week and you have to make all these superfluous taps all day every day, it adds up.”
The Tomlinson’s team addressed these challenges by switching to Shopify POS—and the switch paid off quickly, reducing in-store checkout times by over 50% and streamlining the training process for new hires.
What makes a retailer successful?
Customer experience
To compete with online convenience, retailers must serve customers equally across all channels by integrating apps and services—from marketing automation and loyalty programs to analytics tools and payment options—on a single, unified retail platform.
Luxury floral brand Venus et Fleur discovered this while expanding from ecommerce into physical stores. “Our biggest challenge was ensuring a seamless, unified experience across both our digital and physical sales channels,” says Brendan Gorman, head of ecommerce.
“Managing inventory across ecommerce and retail locations was initially complex, especially during peak seasons where demand surges for our Eternity® flowers.”
Using Shopify’s centralized and segmented customer data, the team can grow loyalty and lifetime value by offering features like personalized greeting cards and flexible delivery dates across channels, as well as flexible payment options like Shop Pay and Shop Pay Installments. Customers can also use BOPIS or ship store purchases directly to their home.
“Integrating Shopify POS into our existing commerce infrastructure, including our OMS and ERP system, was a seamless process,” Brendan says. “Shopify's robust API and extensive documentation facilitated smooth connections, allowing us to synchronize inventory, orders, and customer data across all platforms efficiently.”
Technology
The traditional retail approach required a mixture of different systems that worked independently but were connected through expensive middleware and integrations. However, to scale an omnichannel business efficiently, you’ll need to use a single platform (like Shopify) to manage online orders, in-store POS, social commerce, and more.
Shopify creates a “single brain” or “single source of truth”. It lets you centralize data from customer profiles to inventory to maintain a 360-degree view of your business. Plus, you can integrate apps and services (marketing automation, loyalty programs, analytics tools) that speak to one another—without the complex coding traditionally required to connect the two.
But, when assembling your infrastructure, don’t just consider the short term. As you grow, your platform should handle higher traffic and transaction volumes without compromising speed or security.
Inventory management
Whether you sell in a single store or across the globe, delivering packages quickly, efficiently, and reliably requires a unified approach to inventory management.
Centralizing your inventory management helps you stay on top of stock, so you can avoid disappointing customers with out-of-stocks and tying up capital with too much inventory. With historical data and real-time analytics, you can predict future sales, automate reordering, and prevent unwanted stockouts.
Menswear retailer Mizzen+Main uses Shopify to provide staff a unified view of its inventory, letting staff check stock levels in real time across every location. If a product isn’t available in-store, it can quickly be sourced from another location or the central warehouse and shipped directly to the customer.
“With our ability to only carry a select few sizes in the store, I would say about 20% of our weekly transactions happen through the ship to customer feature,” explains store manager Trey Pritchard. “Shopify POS makes it very simple.”
💡Tip: Shopify helps you manage warehouse, pop-up shop, and retail store inventory from the same back office. It automatically syncs stock quantities as you receive, sell, return, or exchange products online or in-person—no manual reconciling necessary.

Brand building and community engagement
With retail media spending projected to exceed $165 billion in 2025, competition is fierce. Customer acquisition costs have jumped in recent years, with brands now losing about $29 for every new customer they acquire.
Smart retailers are building thriving communities instead of just running ads. These communities boost retention and brand awareness while reducing support costs. Events and pop-ups drive brand awareness and social media buzz—over 40% of consumers become more loyal after attending a business event.
For example, when Sarah Pyo and Dave Roberts opened Carlisle Pet Foods in Ontario in 2020, they invested heavily in local events and community building. They sponsored a children’s hockey team fondly named the “Wendels” after Sarah’s dog and built a free dog wash behind their store.
Now, folks who come to wash their dogs often stop into the store. “Things that are community-forward have yielded higher conversions,” explains Pyo.
Grow your retail business with Shopify POS
The retail revolution is an ongoing transformation, a fundamental reimagining of how businesses create value, connect with customers, and solve real-world problems.
What began as simple product sales is evolving into a complex system of creating meaningful connections, solving human needs, and building deeper connections. But the true power lies in how businesses use technology to create human value.
Shopify’s unified commerce platform allows retailers to become more intelligent, more responsive, and genuinely helpful to their customers. From surfacing shopper insights to seamless operations, Shopify helps you take a more responsive, customer-focused approach to retail—all while streamlining the backend operations that make it possible.
Retail business examples FAQ
What is an example of a retail business?
Examples of retail businesses include:
- Department stores
- Pop-up shops
- Big box stores
- Convenience stores
- Discount stores
- Supermarkets and grocery chains
- Specialty stores
- Used goods retailers
What is classified as a retail business?
Any business that sells goods directly to consumers is classified as a retail business. This includes brick-and-mortar stores, ecommerce websites, and hybrid business models that combine digital and in-person shopping experiences.
Who are the top 5 retail stores?
The top five retailers in the United States are:
- Walmart
- Amazon.com
- Costco Wholesale
- The Kroger Co.
- The Home Depot
Is 7-Eleven a retail business?
7-Eleven is absolutely a retail business. As the world's largest convenience retailer, 7-Eleven operates a vast network of stores selling a variety of products including food, beverages, and everyday essentials.