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Unified retail is a priority for UK retailers. Almost nine in 10 say it's essential to future growth, with the majority also reporting strong levels of confidence in how well their online and in-store operations work together.
On paper, those numbers look encouraging. However, findings from Selling in sync - our latest report published in partnership with Shopify - also reveal several areas where retailers continue to face challenges. Four in ten retailers have experienced customer complaints linked to inconsistent experiences, while many continue to lose sales through inventory issues, disconnected systems, and inconsistent customer experiences.
The challenge is that merely connecting systems isn't the same as creating a fully unified operation. While many retailers have made significant progress, the research highlights several areas where customer expectations and operational reality remain out of sync.
None of these are dramatic failures on their own. That is partly why they are so easy to live with internally. But together, they create a kind of friction tax. Small resets that chip away at conversion rates, confidence, and repeat behaviour.
Based on our survey of 200 UK retail decision-makers, these are five of the most common points of friction.
1. Channel-restricted gift cards
Of all the areas we looked at as part of our research, gift cards showed the lowest levels of unification. Just 46% of retailers support gift cards consistently across online and in-store channels, making them the least connected feature within the unified retail experience.
While gift cards may seem like a relatively small part of the customer journey, they can quickly expose wider weaknesses in how systems speak to each other (or don’t, in this case). Customers naturally expect balances and credits to move seamlessly between channels, and when they don’t, the disconnect erodes convenience and confidence.
To address the issue, retailers need gift card balances, credits, and redemptions to be managed from a single source of truth across online and in-store systems, giving customers a consistent experience wherever they shop.
2. One-way returns
Returns have always been one of the thorniest areas of retail, particularly online, and our findings indicate that many bricks-and-clicks merchants are still struggling to unify them.
Only around 60% of retailers report offering unified returns, leaving as many as 4 in 10 with processes that don't fully carry across their online and physical stores. That means customers who buy online can’t just drop off an unwanted item at a nearby branch, and shoppers who purchase in-store don’t have the option to return goods by post.
With the vast majority of shoppers willing to shun brands after a negative returns experience, this lack of flexibility is likely costing retailers repeat business. It also places extra pressure on in-store teams, who are often left managing different processes depending on where a purchase was made.
With a unified setup, customers can return products through the channel that works best for them, regardless of where the original purchase took place. Behind the scenes, connected order histories, returns data, and refund processes help retailers reduce complexity, while creating a more convenient experience for shoppers.
3. Disconnected store teams
One of the key benefits of unified retail is giving store teams access to the same info that customers see online. However, our research suggests many retailers have yet to completely connect their POS system with the rest of their commerce operations.
Only 34% of retailers describe their POS system as a central, fully integrated part of their wider commerce setup, while nearly half say it's only partially connected. As a result, store teams often lack a complete view of customer history, inventory, and activity across channels.
This makes everyday interactions with customers tougher for shop floor teams, as staff may struggle to check stock availability across locations, access previous purchases, verify order info, or provide accurate fulfilment options.
Creating a more connected experience starts with bringing POS into the heart of the wider retail ecosystem. When store teams can access customer, inventory, and order data from a single source, they're better equipped to answer questions, support purchases, and deliver the consistency that shoppers expect.
4. Isolated inventory
One of the key advantages of unified retail is the ability to continue selling even when a product isn't physically available in a particular location, but many retailers still lack the capabilities needed to make that happen.
Less than half support endless aisle functionality, which allows customers to order products that aren't available in-store. Similarly, only 59% offer ship-from-store capabilities, enabling online orders to be fulfilled from store inventory.
Both depend on accurate, real-time inventory visibility across the business. Without confidence in stock data, retailers are often forced to limit these services or introduce additional manual checks.
The result is stock that remains effectively unavailable, despite being somewhere within the retail network. By creating a single, accurate view of inventory across stores, warehouses, and online channels, retailers can make more products available to customers while reducing lost sales opportunities.
5. Fragmented customer profiles
Only 59% of retailers report having customer profiles and purchase histories connected across channels. While transactions may be linked, maintaining a single, reliable view of the customer remains a challenge for many organisations.
This affects far more than marketing. A customer who browses online may not be recognised in-store. Purchase history may be unavailable to store associates. Loyalty info may not follow the customer throughout their journey.
Creating a unified customer view starts with connecting customer data across every touchpoint. When profiles, purchase histories, and loyalty info remain consistent across channels, retailers are better positioned to deliver the level of personalisation and service needed to retain customers in an increasingly competitive market.
Closing the gaps
While these areas may appear to be separate challenges, the findings suggest they're symptoms of the same underlying issue. Info is still becoming trapped between channels, systems, and teams, creating friction that customers increasingly notice.
For retailers, that creates a significant opportunity. Improving the flow of info across the business can help remove barriers between channels, giving customers greater flexibility and creating a more consistent experience.
As unified retail continues to mature, the focus will increasingly shift from connecting systems to delivering consistent outcomes. Whether a customer is redeeming a gift card, making a return, checking stock, or speaking to a store associate, the expectation remains the same - a retail experience that works as one.
Explore the full findings. Download Selling in sync to discover how 200 UK retailers are approaching unified retail, where customer experiences still break down, and the operational challenges driving those gaps.
