Online competition that never closes. Customers who compare everything before stepping into the store and walk away at the slightest disappointment. Margins that were already slim and are getting even slimmer due to return costs, labor costs, and the logistical complexity of omnichannel. And a sales floor where every employee works in their own way, meaning the quality of the customer experience depends on who happens to be on duty.

In retail, operational excellence isn’t a luxury—it’s what distinguishes a retail chain that’s growing from one that’s struggling. LMI helps retailers organize processes on the sales floor, in the back office, and throughout the supply chain so that customers enjoy a consistent, fast, and pleasant experience, and employees know what they’re doing and why they’re doing it that way.

Common challenges in retail

The challenges retailers bring to LMI are common across the entire industry. How do we ensure that the quality of the customer experience remains consistent, regardless of which employee or which location? How do we improve our inventory management so that products are available when customers want them, without the store being filled with slow-moving stock? How do we organize omnichannel processes—such as online ordering, in-store pickup, and returns—so that they run smoothly for the customer and are efficient for the employee? How do we ensure that new employees are quickly ready to work in an industry with high staff turnover?

And on a broader scale: how can we, as a chain, drive consistent improvements across dozens or hundreds of locations without each location manager having to reinvent the wheel?

How Lean in Retail Practice

Lean retail starts on the shop floor—literally. A Gemba Walk through the store reveals where employees are searching, waiting, or duplicating work; where customers get stuck in the process; where products sit that no one is looking for, and where products everyone wants are missing. These observations form the basis for targeted improvements, not assumptions made by headquarters.

LMI then employs a set of methods that are directly tailored to the context. Implementing 5S on the shop floor creates a logical, well-organized workspace: every employee knows where everything is, products are easy to find, and the store always looks neat and tidy—not just after the annual renovation. Job Instructions (JI), a method from Training Within Industry, standardizes how employees perform tasks—from the checkout process to product presentation to customer interactions—so that quality does not depend on who is working. Kanban and pull systems make inventory management predictable: products are restocked at the exact moment and in the exact quantity demanded by customers, not based on a rigid weekly order. And Kaizen brings teams together to quickly and concretely improve specific bottlenecks in the returns process, store logistics, or the onboarding procedure.

Lean various retail segments

Department stores and large retail chains
In large retail chains with many employees, high complexity, and high turnover, standardizing work processes is the most effective lever. If every employee works in their own way, quality becomes unmanageable. IKEA Netherlands is a prime example: LMI facilitated a Kaizen initiative and implemented Job Instructions, Job Methods, and a Skills Matrix, ensuring tasks are performed consistently and employees can be deployed more quickly. IKEA Haarlem completed Lean Green Belt to develop internal improvement specialists, and IKEA Barendrecht began implementing Strategy Deployment.

Specialty Retail and Brand Stores
In specialty retail sectors such as automotive, home appliances, and professional products, the customer experience is more complex and the role of the employee is more significant. Lean standardize service processes, shorten customer journey lead times, and train employees who are both customer-focused and process-oriented. Volvo Cars Netherlands worked with LMI on the implementation of the Volvo Business System, based on Lean. Miele implemented a continuous improvement program throughout the entire organization.

Niche Companies and B2B Retail
Lean also delivers Lean value to smaller, specialized retail companies. Werkman Hoofcare, a supplier of hoof care products to the equine sector, worked with LMI on Lean and Strategy Deployment. The latter is notable for a company of that size: Strategy Deployment helps Werkman link strategic growth ambitions to day-to-day operations, ensuring the organization moves in the same direction.

Omnichannel and E-commerce
In omnichannel retail, where customers want to switch seamlessly between online and in-store shopping, inefficiencies often arise at the touchpoints: click-and-collect processes that don’t run smoothly, return processing that takes too long, and inaccurate inventory information. Lean clarity Lean these processes and helps improve them step by step.

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