Introducing the 6th Pillar of Retail: (Updated July 31, 2026)

It started out with 4 pillars (or 4P’s): Product, Promotion, Price and Place.

People did not count for much back then.

In early 1980’s with the revolution in management fueled by such publications as “In Search of Excellence”, “Re-inventing the Corporation” and many others, suddenly people woke up to the importance of people and added that to the retail arsenal.

We’re now able to talk about the 5th pillar of Retail; People.

At DMSRetail, we believe a strong contribution from all pillars of Retail is necessary to achieve the success that any retailer strives for.

We have seen many examples of failed businesses when they neglect to keep an eye on all the pillars or prefer to focus on one more so than the others.

The objective of this short article is not to get into the nitty gritty of how we should be looking after all the pillars – we have produced success guides and tools to do that and you can find those on our website.

What we want to do, though, is to announce yet another and very powerful pillar of Retail.

We call it the “Pixel” to remain in compliance with the “P” convention.

It stands for technology.

Now, we talk about 6P’s of Retail.

Increasingly, technology is playing ever more influential role in retail success.

Information Systems, starting with customer records, inventory control, loss prevention, supply chain, workforce management and business intelligence changing the efficiency and effectiveness of retail operations to a point where retailers who do not embrace the technology move to the forefront of businesses that are doomed to fail.

So, this is a little advice from your friends at DMSRetail to you, to acknowledge and embrace technology as one of the pillars of retail and to view it as something that will help your profitability immensely and overall success of your business.

One crucial development has been the Artificial Intelligence.

AI is fundamentally transforming the retail industry by shifting operations from reactive, manual processes to predictive, strategic systems. By bridging the gap between traditional retail math and modern machine learning, AI enables a transition from manual calculations to high-level, advisory decision-making that boosts overall productivity and profitability.

The primary value of AI in retail lies in its ability to process massive datasets in real-time, allowing businesses to anticipate customer needs, streamline supply chains, and optimize pricing dynamically.

Here are two practical examples of how AI is applied, specifically looking at internal store operations and wholesale collaboration:

1. Internal Store Operations and Merchandising

AI significantly reduces the manual labor required to manage a physical retail space. Using a combination of predictive analytics and computer vision, AI systems can monitor inventory on the floor in real-time.

Example: A major apparel brand uses AI to analyze historical sales data, local weather forecasts, and current fashion trends to predict exactly which jacket styles and sizes will sell in a specific location. Instead of relying on manual stock counts, the AI automatically alerts store associates to replenish specific items on the floor before they sell out, while simultaneously adjusting future shipments to prevent overstocking.

2. B2B Partnerships and Supply Chain Optimization

AI is also revolutionizing how brands manage their B2B networks and wholesale partners. By integrating AI into supply chain logistics, brands can offer their wholesale partners highly accurate demand forecasts.

Example: When a global sportswear manufacturer supplies products to a network of independent outdoor retailers, AI analyzes shared data across the entire B2B network. If the AI detects an unexpected spike in demand for a specific hiking boot in the Pacific Northwest, it can automatically reroute logistics, ensuring those specific regional partners receive the right product mix quickly. This optimizes the inventory for the B2B partners and prevents costly supply chain bottlenecks for the manufacturer.

Three top reasons why retailers do not succeed:

They do not know how to treat their people right, creating excessive turnover.

They do not know how to get the maximum benefit from compensation plans, rewards and incentives, both monetary and non-monetary leading to the dreaded increase in wage cost.

They do not know how to utilize technology to their advantage, except for supply chain technology which is only one part of the equation.

Even those retailers who believe they understand the 6 Pillars of Success in Retail: People, Price, Product, Promotion, Place and Pixel, still cannot reach the levels of success they strive for because of their unbalanced focus on Product/Merchandising.

The biggest myth: Product is everything and everything revolves around Product.

While it is true that a quality product is very important, it is no more important than the people who sell it, the pricing and promotion of it, the place where it is offered to the public or the technology required to optimize operations.

Too much attention focused on one pillar creates an imbalance.

Think of the three-legged chair – remove one of those legs and the chair falls over.

Retail businesses must have a balanced approach to all areas of their business.

Failure to focus on all pillars with a balanced approach causes the business to ‘fall over’ or fail to reach its potential.

Most retailers are pretty good ‘merchants’. They are able to buy products, get them to their stores, display them and track the sales.

But when a retailer concentrates so much of their attention and resources on product and merchandising other areas simply cannot get the attention they deserve and require.

Consider these questions:

• How well do you think your products are being represented to your customer by insufficiently trained minimum wage earners?
• Are you inadvertently eroding your profit margins by educating your customer to wait for markdowns before they buy?
• How would you rate your stores’ image and overall shopping experience delivered compared with others in the marketplace?
• Are you operating with inefficient and aging technology; unable to move ahead because of the restrictions imposed by your systems?

Without due consideration and action in these areas, maximum profits cannot be reached.

DMSRetail knows how to balance the powerful contribution of all of the pillars.

The solutions for increasing profits by taking a solid, balanced approach to all of the pillars are within your grasp.

In ‘The Retail Operations Management Workshop Online’ (click the link on the next line for dates) DMS Retail experts unveil the well balanced approach to achieving maximum profitability through the 6 Pillars.

More info: The Retail Operations Management Workshop Online 

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