Will supermarkets adopt the upcoming technological advancements in their operations?
In the fast-paced world of retail, change is a constant. Whether it's adapting to new shopping trends or upgrading technology, every project requires the same level of due diligence. This is especially true when it comes to modernizing legacy systems to support seamless omnichannel integration.
Last year, during Black Friday, the Currys website struggled with additional demand, forcing customers to wait in a virtual queue for up to an hour. Such incidents highlight the importance of a smooth transition when introducing change. Supermarkets, too, are not immune to these challenges. Supermarket giants like Morrisons have admitted that their IT infrastructure is antiquated, while Tesco has announced plans to migrate to a single global network to enable faster technology rollouts.
Online sales continue to soar, and the fast pace of technology change within the industry has caught out some established supermarket retailers. Black Friday and Cyber Monday have become commonplace in the UK retail market, putting added pressure on infrastructures to deliver a slick multi-channel experience. Amazon's grocery business in Europe is expected to exacerbate the competition in the online grocery market, which is predicted to be worth £17bn by 2019.
To address these challenges, current strategies for updating legacy systems focus on modernizing IT infrastructure incrementally without disrupting ongoing operations. One approach is the phased modernization using the 7 Rs framework—Rehost, Replatform, Refactor, Rearchitect, Replace, Retire, or Retain—that aligns with the retailer’s business goals, timeline, and risk tolerance.
Another strategy involves implementing middleware layers and API-first architectures. These act as translators between legacy and new systems, improving interoperability and enabling flexible integration across ERP, CRM, CMS, and supply chain platforms. Hybrid strategies, combining several modernization techniques, are also being adopted to maintain system stability while gradually enhancing performance and capabilities.
Phased migration rather than "big bang" implementation is another key strategy. This approach reduces operational risk and allows testing and adjustment in stages. Ensuring comprehensive system audits and governance is also crucial to understand legacy architecture, data flows, and security risks before updates.
To mitigate risks associated with these updates, retailers apply practices such as maintaining robust data governance, thorough testing of integrations, security upgrades and compliance measures, detailed cost-benefit and ROI analyses, and ethical AI governance frameworks. Starting with customer data unification can also unlock fast wins in personalization and prepare infrastructure for advanced omnichannel functionalities.
These strategies collectively enable retailers to transform legacy constraints into agile omnichannel platforms that support scalable growth, improved customer experience, and operational efficiency without disrupting business continuity. The emphasis is on choosing the right modernization path, executing upgrades incrementally, and managing human and technical risks through planning and governance.
Today's shoppers can interact with retailers through various mediums, including in-store, online, "click and collect," and home delivery. In the latter case, obsolescence is a risk, and the legacy system needs to be replaced. Senior management should work closely with the IT team to instill confidence in the change process, preparing the organization with training and change management so that staff adopt new tools effectively, addressing resistance through tiered education and internal champions.
With the right strategies in place, retailers can navigate the challenges of modernizing their legacy systems and embrace the opportunities of the digital age, providing efficient services to customers and staying competitive in the ever-changing industry.
Technology plays a crucial role in the modernization of legacy systems in retail, enabling seamless omnichannel integration and supporting scalable growth. Retail giants like Tesco are adopting strategies such as migrating to a single global network and implementing middleware layers and API-first architectures to enhance interoperability and improve system performance.
