Engineering Transformation in Retail: Modernizing Platforms and Customer Experiences

In today’s retail landscape, the pace of change is relentless. Consumer expectations are shaped by digital-native disruptors, demanding seamless omnichannel experiences, rapid innovation, and personalized engagement at every touchpoint. Yet, many established retailers remain constrained by legacy systems, siloed teams, and outdated processes that limit their ability to adapt and grow. Engineering transformation—anchored in agile teams and modern technology platforms—has become the critical enabler for retailers seeking not just to compete, but to lead in the digital era.

Retailers face a unique set of challenges:

• Integrating digital and physical channels to deliver unified, frictionless customer journeys.
• Modernizing complex legacy systems that slow innovation and increase operational risk.
• Harnessing data and AI to personalize experiences and drive smarter decision-making.
• Scaling platforms to support rapid growth and peak demand, especially during seasonal surges.

Digital-native competitors are setting new standards for convenience and innovation. To thrive, retailers must move beyond incremental improvements and embrace holistic engineering transformation.

Publicis Sapient’s partnership with one of the world’s largest grocery and general merchandise retailers offers a blueprint for successful engineering transformation:

• Scaled online grocery platforms and established independent digital channels, reducing reliance on third-party marketplaces.
• Transformed the apparel business with a new digital platform, brand strategy, and integrated loyalty program.
• Adopted an engineering-first, agile organizational mindset, shifting to lean, cross-functional teams capable of delivering high-quality results at speed.
• Modernized legacy systems by moving to service-based, API-driven architectures and implementing a global content management system.
• Leveraged microservices and cloud technologies to enable rapid innovation, scalability, and resilience.

This transformation was not just about technology—it was about reimagining how teams work, how platforms are built, and how value is delivered to customers.

A pivotal shift occurred when the retailer embraced agile methodologies and an engineering-first mindset. By breaking down silos and forming lean, cross-functional teams, the organization was able to:

• Accelerate delivery cycles, moving from months-long releases to daily enhancements without downtime.
• Foster a culture of continuous improvement, where teams measure, iterate, and swiftly react to customer feedback.
• Empower teams to own outcomes, driving accountability and innovation at every level.

This approach enabled the retailer to consolidate over 350 projects into agile squads, release a minimum viable product (MVP) in just six months, and achieve a 1.5x increase in conversion rates post-launch.

Legacy systems are a major barrier to innovation. Publicis Sapient guided the retailer through a comprehensive modernization journey:

• Migrating to cloud-native platforms for scalability, resilience, and cost efficiency.
• Adopting microservices and API-driven architectures to enable seamless integration across channels and partners.
• Implementing composable, MACH (Microservices, API-first, Cloud-native, Headless) architectures to future-proof commerce experiences and respond rapidly to market shifts.
• Leveraging automation and site reliability engineering to ensure robust, secure platforms capable of supporting peak demand.

The result? Zero platform glitches during peak shopping seasons, a 25x increase in the frequency of system enhancements, and an 80% reduction in on-premise costs.

The engineering transformation delivered tangible business outcomes:

• $1B annual revenue from the general merchandising solution
• $500M annual revenue from international grocery e-commerce
• 35% improvement in e-commerce order picking rate
• 4% improvement in on-time delivery
• 50% reduction in development costs
• Rapid scalability to accommodate surges in online demand, such as doubling online orders and delivery slots in less than a week during the COVID-19 pandemic

These results underscore the direct link between engineering excellence and business growth.

Retailers at any stage of their engineering journey can draw on several best practices:

1. Align technology investments with business objectives. Ensure every engineering initiative is tied to measurable business value.
2. Break down silos and foster cross-functional collaboration. Agile squads that blend engineering, product, and business expertise deliver faster, higher-quality outcomes.
3. Modernize platforms incrementally. Prioritize high-impact areas for cloud migration, microservices adoption, and automation.
4. Embrace a data-first mindset. Leverage advanced analytics and AI to inform decision-making and personalize customer experiences.
5. Invest in continuous improvement. Measure, iterate, and adapt based on real customer feedback and operational data.

Whether you’re just beginning or looking to scale your engineering transformation, consider these steps:

• Assess your current state. Identify legacy bottlenecks, organizational silos, and opportunities for quick wins.
• Build a transformation roadmap. Define clear milestones, from agile team formation to platform modernization and data integration.
• Partner for success. Leverage external expertise to accelerate change, upskill teams, and adopt proven methodologies.
• Measure and celebrate progress. Track business and technical KPIs to demonstrate value and sustain momentum.

Publicis Sapient is recognized as a leader in retail engineering transformation by industry analysts and clients alike. Our SPEED methodology—Strategy, Product, Experience, Engineering, and Data & AI—ensures every engagement is holistic, outcome-driven, and tailored to the realities of modern retail. With deep partnerships across cloud providers and a global delivery model, we empower retailers to modernize, innovate, and lead.

Ready to unlock growth through engineering transformation? Connect with Publicis Sapient’s experts and discover how agile teams and modern platforms can future-proof your retail business.

Relevant Links

• Publicis Sapient and Engineering Transformation - How Every Company Can Become a Tech Company
• Transformation numérique et ingénierie : Comment les entreprises européennes peuvent devenir agiles et innovantes (Europe)
• Publicis Sapient and Engineering Transformation - How Every Company Can Become a Tech Company
• Engineering Transformation in Energy & Commodities: Building Agile, Tech-Driven Organizations
• Scaling Engineering Transformation in Financial Services: From Legacy to Cloud-Native
• Transformación de la Ingeniería en Servicios Financieros: De los Legados al Futuro Nativo en la Nube (LATAM)