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What is Retail? Your Guide to Success in Modern Commerce


Are you struggling with low website traffic, poor online visibility, or low conversion rates? Do you wonder how to understand and improve the ROI of your digital marketing? The answer begins with a deeper understanding of what retail truly means today. It's more than just a transaction; it's the entire playing field where customers discover, experience, and ultimately purchase from your brand.

Imagine retail as the stage where your products play the leading role. Without a well-designed stage—whether it's an inviting storefront or a razor-sharp web shop—your story won't connect. As an entrepreneur, you must understand the customer journey, from the first Google search to the moment of purchase.

In this guide, you will learn:

  • What the core of modern retail is and why it's crucial for your growth.
  • The different retail models that exist, and which one best suits your business.
  • What the modern customer journey looks like and how to optimize it.
  • How to boost your visibility and sales with digital marketing, SEO, and AI.

The Essence of Retail: From High Street to Digital Marketplace

From shopping street to digital marketplace. Digitalique

The world of retail has changed drastically. We have evolved from a landscape dominated by physical high streets to a complex, integrated market where online and offline seamlessly merge. This shift offers enormous opportunities but also raises the bar. How do you stand out in a crowded digital arena?

The secret lies in mastering the mechanisms that drive modern retail. In practical terms, this means:

  • Visibility (SEO & GEO): Ensure you are found where your customers are searching. This means ranking high in Google, both nationally (SEO) and locally (GEO-targeting).
  • Customer Experience: Offer a smooth and enjoyable interaction at every touchpoint, from the first click to after-sales service.
  • Conversion & Lead Generation: Know how to effectively turn visitors into loyal, paying customers and valuable leads.

The Economic Power of Retail in the Netherlands

The Dutch retail sector is an economic engine. With a total turnover of around €975 billion in 2022 and approximately 300,000 businesses, its impact is gigantic. The sector here is more than twice as large as in neighbouring Belgium, which underscores both the competition and the opportunities.

Although supermarkets showed a revenue growth of about 8% in 2023, the online share is becoming increasingly dominant. By the end of 2023, nearly 25% of companies were selling online, a huge leap compared to a decade ago. You can find more details on these retail statistics at IBISWorld.

Understanding these dynamics is the first step toward a successful business. Those who grasp

Which Retail Model Fits Your Business?

Now that you know the basics, let's delve into the how. The way you bring your products to market is just as important as the products themselves. Choosing the right retail model is crucial for reaching the right people and building a sustainable business.

Think of it as choosing a vehicle for a journey. A sports car is perfect for the highway, but you need a 4x4 for the mountains. The retail world is not 'one-size-fits-all'. Today, companies operate through various models, each with its own advantages and challenges.

This infographic illustrates how global retail sales are distributed across the main models.

Which retail company suits you?

Even with the explosive growth of e-commerce, physical stores still hold a huge share. This shows that a smart, integrated strategy is often the key to success.

Physical Store (Brick-and-Mortar): The Traditional Powerhouse

This is the classic shop on the street. The biggest advantage of a physical store is the tangible experience. Customers can see, touch, and try products before they buy. The personal interaction with knowledgeable staff is golden for building brand loyalty.

The downside is the costs: rent, staff, and utilities. Moreover, your customer base is limited to your geographical location. That's why many traditional stores now integrate digital tools to expand their reach.

E-commerce: The Digital Showcase

E-commerce simply means selling your products online through your own website or webshop. Geographical boundaries disappear, and you can reach customers across the country—or even worldwide—24/7. The overhead costs are typically much lower, and you have full control over your brand story and, crucially, your customer data.

The biggest challenge? Standing out. With millions of other web shops, it's a constant battle to attract visitors. This is where a rock-solid digital marketing strategy becomes absolutely indispensable.

D2C (Direct-to-Consumer): The Direct Connection

Direct-to-Consumer (D2C) is a form of e-commerce where the brand sells products directly to the customer, without intermediaries like wholesalers. Think of brands like Ace & Tate or Mr Marvis. This model leads to higher profit margins and creates a direct feedback loop with your customers, which is invaluable for building a community.

The flip side is that you have to do everything yourself: marketing, shipping, customer service. It requires a serious investment to build a brand that people recognize and trust without the endorsement of major retailers.

Online Marketplaces: The Digital Shopping Mall

An online marketplace is a large platform like Bol.com, Amazon, or Zalando that houses thousands of sellers under one digital roof. The analogy of a shopping mall is perfect: you rent a spot in a location that already attracts enormous traffic. This gives you direct access to a gigantic customer base.

The disadvantages? The competition is fierce, and you have little control. You are positioned next to your rivals, must adhere to the marketplace's rules, and pay a hefty commission on every sale. It's also difficult to build a unique brand identity.

Comparison of Modern Retail Models

This table summarizes the key aspects of each model, so you can see at a glance which approach best fits your business goals. ​

Retail modelPrimary ChannelCustomer RelationshipKey AdvantageBiggest Challenge
Physical StorePhysical shop Direct, personal Tangible product experience and personal serviceHigh overhead costs and limited geographic reach
eCommerceOwn websiteDirect, but digitalGlobal reach and full control over brand/data Generating traffic and online visibility (SEO)
D2C Own websiteVery direct and personalHigher profit margins and strong community buildingManaging all business functions (marketing, logistics)
Online MarketplaceThird-party platformIndirectly, via the platformDirect access to a huge, existing customer base Intense competition and lack of brand control

The right choice depends on your product, your target audience, and your vision. Many successful brands use a hybrid approach, combining the strengths of multiple models for a seamless customer experience.

Mapping the Modern Customer Journey

Mapping the modern customer journey

How do customers find their way to your products today? It used to be simple: you saw an ad, went to the store, and bought something. That linear path no longer exists. The modern customer journey is a complex web of touchpoints across online and offline channels.

For example, a customer might see an ad on Instagram, dive into reviews on a comparison site, and check out the product in your physical store. The purchase? They might make it days later through the webshop. If you don't understand what this journey looks like, it's impossible to solve problems like low conversions. You need to know where and why customers drop off.

Multichannel vs. Omnichannel: The Crucial Difference

Many entrepreneurs think they're doing well because they are active on multiple channels: a webshop, an Instagram account, and a physical store. We call this a multichannel approach. The question, however, is: do those channels truly work together? ​

Think of a multichannel strategy as separate roads leading to your business. Each road gets the customer to the destination, but the paths never cross.

Omnichannel is the next, crucial step. Here, you don't build separate roads but an integrated highway system. Customers switch lanes effortlessly without their journey stalling. Everything is interconnected.

An omnichannel experience means a customer can reserve a product online, try it on in the store, and complete the purchase on the spot via an app. All systems—from inventory to customer data—work together seamlessly.

The Most Important Touchpoints

To build a strong omnichannel strategy, you need to identify the key touchpoints in the customer journey. Let's list the crucial phases:

  • Awareness: The customer realizes a need. They encounter your brand through a Google search, a social media post, or an informative blog article.
  • Consideration: The customer actively seeks solutions and compares options. They read product reviews and view your offerings alongside competitors'.
  • Purchase: The decision is made. A smooth, frictionless payment experience is essential here, whether online or in-store.
  • Service: After the purchase, questions arise about delivery or use. Fast and easily accessible customer service makes the difference here.
  • Loyalty: A positive experience encourages the customer to return. Personalized emails and loyalty programs turn a buyer into a loyal fan.

The key to success is carefully mapping this journey for your customers. By diving deep into what makes a retail experience seamless, you build a system that not only sells but also forges lasting customer relationships.

Digital Marketing as a Growth Engine for Your Retail Business

We've discussed retail models and the customer journey. But how do you apply that knowledge to achieve real results? Let's get practical. A strong digital presence is the engine that drives a modern retail business and solves problems like low website traffic or an unclear marketing ROI.

Many entrepreneurs we speak with struggle with this. They invest in ads or social media but have no idea what actually generates sales. A smart strategy turns marketing from a cost center into a predictable way to grow your business.

Nowhere to be Found Online? That's an SEO Problem

Is your website lost on page two or three of Google? If customers can't find you when they search for what you sell, you're practically invisible. This is precisely where Search Engine Optimization (SEO) becomes your best friend.

Think of SEO as the art of getting your website to the top of the search results for the right keywords. It's like giving your digital store the most prominent spot in the city's busiest shopping street. A good SEO strategy ensures that when someone searches for a solution to their problem, your company is the first and best answer. This attracts high-intent traffic: people who are already planning to buy.

Turn Visitors into Leads with Valuable Content

Getting traffic to your site is step one. The real challenge is converting those visitors into leads and customers. Strategic content marketing makes the difference here. By creating useful blogs, guides, or videos, you solve your audience's problems and win their trust.

Effective content doesn't push a sale; it solves a problem. When you position your brand as a helpful expert, you build a relationship long before a customer pulls out their wallet.

This approach allows you to capture their attention and gently guide them through the buying process. For example, a detailed guide on choosing the right product in your industry can generate valuable leads and strengthen your reputation as an expert.

Find Your Ideal Customers with AI and Social Media

How do you ensure your message doesn't just disappear into the void? Modern tools like AI and social media advertising enable impressively precise targeting. You can stop casting a wide, expensive net and focus on specific groups based on demographics, interests, or even purchasing behavior.

Here's how it works:

  • AI-driven Personalization: AI analyzes customer data and predicts what they'll want next. This means you can show them relevant product suggestions or personalized offers.
  • Targeted Social Ads: Platforms like Facebook and LinkedIn let you show ads to the people most likely to be interested, making every marketing dollar work harder.

This laser-focused approach not only delivers higher-quality traffic but also gives your conversion rates a serious boost. You get a clear, measurable return on investment.

Key Trends Shaping the Future of Dutch Retail

Mapping the future of Dutch retail formats

Knowing where retail stands today is one thing, but understanding where it's headed gives you a competitive edge. The Dutch retail sector is constantly influenced by new technology and changing customer expectations. To build a future-proof business, you need to anticipate these changes.

Ignoring these trends is not an option; you risk falling behind while your competitors surge ahead. Let's examine the three biggest shifts in Dutch retail.

Sustainability as a Decisive Factor

Today's consumer is smart and conscious. They don't just want a great product; they want to feel good about it too. Sustainability is no longer a niche preference but a core value that directly influences purchasing decisions. This is especially clear in food retail, a huge part of the Dutch economy.

The Dutch food retail market, valued at approximately $58 billion in 2024, is seeing enormous demand for products that are sustainable, healthy, and reasonably priced. This indicates a major shift in what consumers prioritize. More insights on the Dutch food retail market can be found at the USDA.

AI-Driven Personalization at Scale

How do you make every customer feel like they are the most important one? The answer is Artificial Intelligence (AI). AI gives businesses the power to analyze vast amounts of customer data and create unique shopping experiences.

This goes beyond using a first name in an email. AI drives:

  • Smarter product recommendations: Suggesting items based on previous browsing and purchase behavior.
  • Dynamic pricing: Adjusting prices based on demand or customer behavior.
  • Personalized marketing: Showing different banners or ads to different visitor groups.

AI helps you build a stronger bond with your audience, which is proven to lead to higher conversions and customer loyalty. It transforms a standard webshop into a dynamic, personal shopping assistant.

The Rise of Quick Commerce and Convenience

In today's market, speed is everything. Services like Gorillas and Flink have completely changed delivery times and set a new standard: quick commerce (q-commerce). Customers now expect faster, more flexible delivery for almost everything.

Although q-commerce is still a small part of the market, its influence is growing rapidly. This trend forces every retailer to critically examine their logistics. If your delivery is slow, you will likely lose customers to someone who can do it faster. Efficient delivery options are no longer negotiable. Our expertise in developing a high-performance webshop developing a high-performance web shop  includes optimizing these vital checkout and fulfillment steps.

Ready for the Next Step in Retail?

We've taken a deep dive into the world of retail: from the basic definition to digital strategies. Understanding all this is a huge win. The retail world never stands still, but every challenge is an opportunity for those who are well-prepared.

Above all, remember this: success is no longer just about what you sell, but primarily about how you sell it. A seamless experience, supported by a smart digital approach, is what separates thriving businesses from those left behind.

From Knowledge to Action: Take the Next Step

Mastering retail is an ongoing process. The next step is to apply these insights to your unique challenges.

  • Analyze your own retail model: Are you leveraging all its strengths and working on its weaknesses?
  • Map your customer journey: Where are the bottlenecks where potential customers drop off?
  • Evaluate your online presence: Are you truly visible where your customers are searching (SEO)?

By answering these questions honestly, you will naturally see where the opportunities for growth lie. And you don't have to walk that path alone. At Digitalique, we specialize in turning these kinds of retail challenges into measurable growth and a higher ROI.

Ready to turn your retail strategy into concrete results? Let's talk about your goals.

Schedule a free strategy session with us

Your Most Important Retail Questions Answered

Even with a good understanding of the basics, practical questions often remain. Let's address some of the most common questions we hear from entrepreneurs.

What is the single most important part of retail today?

If you have to choose one thing, it's the customer experience. In a world full of similar products, the way you make a customer feel is what truly sets you apart.

The entire journey, from the first touchpoint to the post-purchase follow-up, is your chance to shine. A smooth, personal, and helpful experience builds loyalty in a way that competing on price never will. This is the core of what defines a successful retail strategy.

Can a small business really compete with the giants?

Yes, absolutely. Small businesses have a secret weapon: you are agile and can build genuine, human connections. You'll never outspend a giant like Amazon on advertising, but you can win hearts with personality, niche expertise, and unforgettable service.

Here’s how you do it:

  • Dominate your niche: Don't try to be everything to everyone. Focus on a specific target audience and become the expert they trust.
  • Be human: Offer a level of personal care that a large, faceless corporation can't scale.
  • Create a community: Use your story and values to build a tribe of loyal fans, not just customers.
  • aster local search: If you have a physical store, dominating local search results in Google is a powerful way to bring people in.

How much should I spend on digital marketing?

There is no magic formula. The right budget depends on your industry, your goals, and your business's current stage. Stop seeing marketing as a cost and start treating it as an investment in your growth.

So, don't ask "how much," but "what do I want to achieve?" Do you want to increase your website traffic by 20%? Or generate 50 qualified leads per month?

When you set clear, measurable goals, you can build a budget that contributes directly to those results. This ensures that every euro works hard for a real return on investment.

We cover even more common entrepreneurial questions in our own frequently asked questions section, so feel free to take a look.

At Digitalique, we help businesses navigate these challenges every day. Let's chart your path to retail success together.

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