Retail

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Organization

We help retailers meet organizational challenges across markets, channels, and formats, developing robust structures and building capabilities.

Driven by competition and consolidation, large, complex retail enterprises operate across countries, channels, categories, and formats. While size and scope afford economies of scale, they also present considerable structural challenges.

We work with retailers to manage organizational complexity and design robust organizations that fit their specific needs. We have completed more than 200 projects on retail organization over the past five years alone. Our experts bring deep retail knowledge and our latest thinking on organizational health and performance.

What we do

Our teams engage with retailers and retail holding companies on a wide variety of organizational topics:

  • Organization design: Focusing on category management, supply chain, private label, e-commerce, and property management, we help retailers build robust structures that support their businesses.
  • Retail leadership development: From aligning the top team to building capabilities throughout the organization, we help identify and develop leadership talent.
  • Operational change management: By embedding new structures and processes in areas from commercial management to in-store operations, we help our clients make smooth transitions and ensure that new ways of working stick.

As new commercial opportunities and challenges develop, organizational requirements often evolve. We work closely with clients to anticipate changes and benefit from the competitive advantages of a strong organizational foundation.

Featured capabilities

Our teams apply proprietary, McKinsey-developed tools in their work. Tools are often adapted or adjusted to address specific organizational challenges.

Many projects make use of the 3M Retail Organization Design framework (3M refers to an approach that is multi-format, multichannel, and multi-country). The framework guides our thinking on complexity management and organizational trade-offs. Specifically, it helps retailers work across organizational silos to take a more customer-centric perspective on formats and channels.

For people development and performance management efforts, we use a wide range of diagnostic tools, benchmarking data and intervention methods to help retailers achieve new levels of performance, from designing strategic incentives to creating processes that enhance group energy and alignment. We work closely with our Organization Practice on topics such as organizational health, HR management, talent sourcing, and leadership development.

Learn more about our Organization Practice.

Featured experts

Bryan Hancock

Partner, Atlanta

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