Retailers As Brands: Growth Lies In Understanding The Role Of Every Channel

In an era where retail is increasingly defined by omnichannel complexity, the instinct is often to expand: more channels, more touchpoints, more innovation. Yet according to Els Breugelmans, Full Professor at KU Leuven and expert in retail and consumer behaviour, this is not where true growth is found. Instead, the real driver of success is much more fundamental. Retailers grow not by doing more, but by doing what matters most for the customer. Reflecting on her research, Els returns to one core principle time and again: “For me, brand growth is very much tied to understanding the customer.”

Customer-Centricity as the Foundation of Growth

Customer-centricity is one of the most frequently used terms in marketing, yet Els makes clear that it is still not consistently applied in practice. Many retailers continue to think from within: from their product range, their formats, their channels, or their internal structures. However, the retailers that succeed are those that invert this logic. They start from the customer and build their strategy around what that customer needs, wants, values and truly cares about.

“They look at opportunities from the customer’s perspective and can adapt their strategy much faster,” Els explains.

This distinction becomes increasingly important in a world where consumer behaviour is constantly shifting. External factors such as inflation, changing household dynamics, or even major life events (such as finding or losing a job, or getting a serious health diagnosis) can significantly alter purchasing patterns. Retailers that rely purely on historical data or fixed strategies risk missing these shifts.

By contrast, those that focus on understanding the “why” behind behaviour, not just the “what”, are better equipped to anticipate change. This deeper layer of insight enables brands to stay relevant, even as the context evolves. Ultimately, brand growth is not driven by reacting to change, but by understanding it early and acting on it decisively.

“For me, brand growth is very much tied to understanding the customer.”

Convenience vs Experience: A Category-Driven Strategy

A key insight from Els’ research is that not all retail should be approached in the same way. The distinction between low- and high-involvement categories is critical.

In food retail, purchases are frequent, routine and often low-risk. Here, convenience is the dominant driver. Consumers want to complete their shopping quickly, with as little effort as possible. Retailers should therefore reduce friction and support such (oftentimes habitual) behaviour. Consider for example prior research that shows that grocery shoppers spend only a few seconds in front of a typical shelf, and consider just one or two product options (out of the many on display). Often, these will be the brands with high mental availability: “If you’re not already in the consumers’ mind before they enter the store, they simply won’t look for you on the shelf,”  Els notes.

When retailers then ensure that these products are also readily accessible in a physical sense (i.e., easy-to-find on the store’s shelves), grocery shoppers are able to shop in a convenient and smooth manner, thereby creating customer value.

In non-food categories, however, the situation is fundamentally different. Purchases are less frequent and more considered, often involving higher financial or emotional stakes. In these contexts, consumers are more open to exploration and guidance. Though being able to shop without friction remains the baseline expectation for consumers, this is where consumer experience can become a key differentiator. (Physical) stores can play a crucial role in adding that experience for consumers, for instance by enabling discovery, offering personal advice and/or creating engaging environments. In such higher involved categories, the store then serves not just as a point of sale, but as a point of reassurance.

The implication for brand growth is clear: retailers must align their proposition with the nature of the category. A mismatch between consumer expectations and retail experience can quickly erode value, while a well-aligned approach strengthens both brand perception and performance.

“If you’re not already in the consumers’ mind before they enter the store, they simply won’t look for you on the shelf.”

The Evolving Roles of Physical and Online Channels

The growth of e-commerce has led to repeated predictions about the decline of physical retail. Els, however, strongly disagrees. “I fundamentally do not agree with the idea that the physical shop no longer has a role,” she states.

Physical stores remain essential, particularly in food retail, where fully online shopping remains the exception rather than the rule. Still, they prove to be highly important for non-food products as well, albeit that their role within the customer journey is changing. Rather than being purely transactional spaces, stores are increasingly becoming places where additional value is created. They can enable discovery (of what products are available), provide personalisation, foster community, or deliver engaging experiences that cannot be replicated online. At the same time, online channels serve a different but equally important function. They are often used in the search and orientation phase of the customer journey.

“I think it is very important to realise that an online channel is often used in the search phase,” Els explains. This means that online does not always need to convert directly to justify its existence. Even if it generates little immediate revenue, it can play a crucial role in influencing decisions that ultimately lead to offline purchases.

However, online environments come with their own challenges. With competitors just one click away, providing a frictionless user experience is critical. Any difficulties in navigation, finding information or completing the checkout process can immediately drive customers elsewhere. In that sense, the digital channel is both a powerful enabler and an unforgiving environment.

“I fundamentally do not agree with the idea that the physical shop no longer has a role.”

From Channels to Journeys: Creating Synergy for Growth

Perhaps the most important shift Els advocates is moving away from a channel-centric perspective altogether. “My advice would be: stop thinking in terms of channels,” she says.

Instead, retailers should focus on the customer and the customer journey as a whole. Each channel can have its own role and purpose, and growth comes from how well these roles are aligned with consumer needs and wants. Online and offline should not compete, but complement each other. While online channels can inform, inspire and guide, physical stores can reassure, personalise and create experience. Together, they can form a cohesive system that supports the customer at every stage in his/her journey.

A strong example of this synergy lies in the use of data. Insights from online behaviour can highlight purchase barriers or unmet needs, allowing retailers to design more effective in-store experiences aimed to solve these frictions. At the same time, in-store interactions can provide qualitative insights that enrich digital strategies. Still, while every channel should capitalise on its own strengths, overall consistency in brand positioning (across channels and over time) remains critical. That positioning should offer something that is unique and valued by consumers – but in reality, many retailers converge on the same messages in highly competitive markets, nowadays oftentimes around price. This makes differentiation increasingly difficult.

“If every retailer competes on price, you end up in a race where no one truly stands out and consumers can’t tell the difference.” Els observes. To grow, retailers must make clear choices about what they stand for and communicate this consistently across all touchpoints. Short-term tactics may drive immediate results, but long-term growth depends on clarity, coherence and trust.

Ultimately, Els’ perspective offers a clear direction for retailers navigating the complexities of today’s markets. Growth is not about adding more channels, but about understanding their purpose from the customers’ perspective. By putting the customer at the centre, recognising how behaviour differs across contexts, and aligning channels into a coherent journey, retailers can turn complexity into a competitive advantage. And in doing so, they evolve from places of transaction into brands that truly matter and that consumers care about.

“If every retailer competes on price, you end up in a race where no one truly stands out and consumers can’t tell the difference.”