Leadership Series
Retail Revival Starts With the Basics – Inventory, People, and Process
After years of shifting to digital and downsizing stores, retailers are now doubling down on brick-and-mortar. But as they pour capital into physical stores, many are finding that their biggest problems aren’t external – they’re internal.
“There’s this myth that tech will just fix everything. But if you don’t have the right people managing inventory, setting up planograms, leading the team – you’re still going to fail.” – Walter Holbrook
Despite the billions being spent on store remodels and omnichannel upgrades, many retailers are still tripping over basic execution.
“I go to Target all the time and I see out-of-stocks constantly. You can’t even find a cart sometimes,” said Mr. Holbrook. “But when you look at their financials, they’re investing in their stores. So you know the money is there.”
He noted that retailers like Target, Kohl’s, and the Dollar Store chains often struggle with in-store execution, whether it’s poor replenishment, broken planograms, or lack of customer service – all of which chip away at performance.
“It’s not about the concept or the store format,” Mr. Holbrook said. “It’s about the operational side. They’re not delivering on the basics. If you don’t have the right people or the right processes, the concept doesn’t matter.”
Even discounters are falling short. “I was at Ross Stores recently and thought: ‘Wow, this store is loaded with merchandise, and it’s actually good stuff. Then I went to Kohl’s and it was sad. It looked like a liquidation store’.”
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Mr. Holbrook warns that too many retailers are chasing tech-driven solutions while ignoring the human side of retail.
“You can’t fix this just by throwing AI at it,” he said. “You need the right people in place, trained properly, with clear direction. That’s what makes retail run.”
He pointed to the disconnect between corporate leadership and what’s actually happening on the floor.
“There’s a gap between the C-suite and store-level execution. Everyone’s trying to use dashboards and algorithms to manage stores, but they’re not solving the real problems,” Mr. Holbrook explained.
He emphasized that while technology can be a helpful tool, it’s not a substitute for leadership or clear operational processes.
“There’s this myth that tech will just fix everything. But if you don’t have the right people managing inventory, setting up planograms, leading the team – you’re still going to fail.”
“Stop blaming the economy. Stop blaming e-commerce. Look inside your business. That’s where the real problems – and the real solutions – are.” – Walter Holbrook
Inventory management is another area where Mr. Holbrook sees misalignment – especially between Wall Street’s expectations and what customers actually want.
“Retailers are terrified of being over-inventoried because of how Wall Street reacts,” he said. “But now they’ve gone too far in the other direction. Shelves are empty, the assortment is weak, and customers are walking away.”
He compared the approaches of Ross and TJ Maxx. “Ross looks like they’re trying to play it safe. TJ Maxx still feels abundant. That makes a huge difference.”
At Kohl’s, Mr. Holbrook suggested the issue might not be inventory alone, but a failure of creativity. “They need something radical,” he said. “What if they partnered with Macy’s and did a shop-in-shop? What if they handed part of the store over to a younger brand or new retail concept?”
The core problem, he said, is fear. “Retailers are scared to take risks. But without bold moves, they’re just going to keep bleeding.”
One of the most striking observations Mr. Holbrook made is that physical retail isn’t in decline because people don’t want to shop – it’s in decline because the experience is uninspired.
“Certainly in the U.S., shopping is a leisure activity. It’s part of our culture. People want to go out, walk around, see what’s new. But retailers have forgotten that,” he said.
The same could be said of retailers in other mature markets. The focus has shifted to driving volume rather than winning shoppers’ hearts with a rich experience. True, retailers need volume to survive, but loyalty is essential if they want to actually thrive.
According to Mr. Holbrook, the pandemic didn’t kill in-store shopping – it only amplified weaknesses that were already there. Now, as people return to stores, they’re not seeing anything worth coming back for.
“Most stores today are dull. There’s no energy, no emotion. You walk in and it’s like, why bother?”
Mr. Holbrook believes the future of brick-and-mortar will depend on creating emotional, even entertaining retail experiences. “You don’t have to be Disney,” he said, “but you do need to give people something they can’t get online.”
He pointed out that brands that are succeeding by leaning into niche storytelling or giving customers a sense of discovery. “Make it fun. Make it fresh. That’s what keeps people coming back.”
One of the biggest unknowns facing retailers today is the changing landscape of tariffs and de minimis rules.
“Before, you could bring in shipments under $800 and avoid duties. That’s changing,” Mr. Holbrook explained. “And no one really knows how it’s going to shake out.”
The issue is especially relevant for low-price imports and DTC brands who’ve relied on this loophole to keep costs down. Now, with de minimis rules tightening and talk of new tariffs on China, sourcing is becoming more complex – and more expensive.
“It’s going to hit margins,” he said. “Retailers are already facing higher shipping costs and wage pressures. Now add duties and tariffs, and you’ve got a real squeeze.”
Mr. Holbrook warned that many retailers aren’t prepared for how quickly this could impact their pricing models – or their competitiveness.
“You can’t keep raising prices without delivering more value,” he said. “So the question is: where do you cut? How do you stay lean while still giving the customer a reason to choose you over the next guy?”
Mr. Holbrook’s take is clear: retail doesn’t need more buzzwords. It needs better leadership.
“Good retailers know who they are. They execute consistently. They listen to the customer,” he said. “That’s not sexy, but it works.”
He pointed to Trader Joe’s and Costco as examples of companies that focus on simplicity, loyalty, and clear value.
“They’re not trying to be everything to everyone. They’re doing the basics right. And they’re winning because of it.”
For struggling retailers, the path forward starts with humility and hard decisions.
“Stop blaming the economy. Stop blaming e-commerce. Look inside your business. That’s where the real problems – and the real solutions – are.”
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