Retail Innovation: 10 Ways to Succeed

Why is it that some home furnishings retailers succeed with their change initiatives while others stumble?

During a recent group session, a member of one of my performance groups shared how she implemented an innovative process that helped her stores save time and improve customer experiences. That prompted another retailer to explain that he attempted a similar rollout, which failed to gain traction. This sparked a discussion about why some home furnishings retailers succeed with change initiatives, while others, whose ideas and intentions are practically identical, stumble.

Over the past 25 years, I’ve worked closely with retailers across North America and globally, helping implement business improvements, technology solutions, and process innovations. There have been countless success stories, as well as some stalls. Here are ten observations that explain the difference in success rates between those furniture retailers that drive innovation and those that abandon it.

#1 Leadership

Innovation depends on more than just good ideas—it requires leaders who commit, set the pace of change, and get involved in execution. In the highest-performing operations, business owners and executives are not just strategists; they’re change agents. Notably, in our industry, most successes come from change mandated by leaders at the very top of organizations. Fewer successes come from the middle ranks, where change initiatives are delegated or made optional.

Committed leaders attend project meetings, review progress and hold their teams accountable. When leaders show up and push initiatives forward, resistance fades, and alignment strengthens. Without visible leadership, change dies in the middle.

#2 Culture

Companies that embrace innovation create corporate cultures where change is expected, not feared. They reward improvement and support experimentation. These businesses aren’t afraid to replace outdated policies, implement performance-based pay plans, or shift merchandising strategies when data supports it. A culture that encourages open communication, learning, and course correction becomes fertile ground for meaningful progress.

Conversely, some operations have cultures that allow their people to oppose change, who often give excuses why initiatives are likely to fail due to “special circumstances.”

#3 Followers that are “Doers”

Even with the best leadership, innovation won’t happen without execution. Successful businesses don’t just delegate change—they build teams of doers who take ownership.

Let’s say two stores are presented with the same plan to sell more adjustable bases. If one store moves forward without question, while team members at the other store complain, it’s clear which one is likely to get better results. Frontline players turn strategy into action. Whether they implement improvements or complain about any technology or process improvement often defines the success or failure of any initiative. Good teams of doers make everyone’s lives easier, not harder.

#4 Measurement

What gets measured gets improved. Businesses that excel at innovation tie every change to metrics. Examples of result-tracking metrics are GMROI, close rates, revenue per guest, service satisfaction, sales growth and inventory turns. For example, a new selling process might be measured by salesperson performance and average ticket; a new delivery process, by damage rates, on-time delivery, and customer follow-up. Result-influencing forward metrics are also used, such as the number of new prospect appointments scheduled, next-purchase follow-up planned, and delivery and pick-up outreach. Data validates change and motivates improvement.

#5 Perseverance: Easy vs. Hard

Because innovation often gets harder before it gets better, companies win by persisting through “the learning curve.” For example, teams tasked with implementing new technology systems may initially struggle. However, teams that persist eventually experience better results. They settle into new comfort zones instead of quitting when friction overwhelms them. Those teams that quit wonder why changes never seem to work out. Learning, development, and peak performance only come from persevering through periods of frustration.

#6 Investment and Cost

Real change requires real time and money. Whether a company is pursuing a technology upgrade, a training program, or a better compensation plan, investment is needed. The best retail companies budget for innovation. They allocate time, capital, and resources. They don’t just talk about it. For instance, they don’t just speak about performance groups or benchmarking; they participate, measure, and act. The result is superior performance, better customer experience, and long-term growth.

#7 Belief

Change doesn’t progress without a belief that a new way is better, the investment will pay off, and people can rise to the challenge. For example, retailers who commit to team-based sales structures must believe in coaching, cross-training, and collaboration—or it falls apart. Belief creates consistency, and consistency drives results.

#8 Professionalism & Desire

A professional environment fuels execution. This means structured meetings, accountability check-ins, clean data, and proactive communication. Retailers with clearly defined service processes and structured damage claims protocols, for example, implement vendor accountability programs more successfully. Professionalism transforms good ideas into working systems.

Desire is the fire behind innovation. Businesses that change the most aren’t always the biggest or most well-funded—they’re the most determined. You see it in companies that benchmark financials every month, analyze profitability by category, and rethink warehouse prep flows for better delivery efficiency. They’re not satisfied with “okay” and always aim for better.

#9 Continual Commitment

Finally, a significant indicator of success is whether a company views innovation as a one-time event or a continuous practice. The best revisit strategies periodically, review KPIs, and update processes as needed. Whether fine-tuning sales contests, refining open-to-buy, or improving compensation plans, they never stop working on themselves and their businesses.

#10 Organization & Communication

Strategy execution requires daily tasks that move organizations closer to their goals. Execution also depends upon effective communication and collaboration.

Try this experiment: Ask several people you work with to describe the organizational tools and techniques they use. Most will list communication tools, such as email, text, and phone calls, rather than organizational tools like a CRM activity scheduler or a shared calendar scheduler—two organizational tools every business should use. A CRM activity scheduler is a to-do list. It displays tasks that need to be accomplished and tracks missed activities. A calendar scheduler tracks important activities and indicates when they must be completed. These tools work well together when implementing change. Unlike the human brain, they don’t forget. They help employees to complete tasks and follow up efficiently. And they enable managers to supervise everyone’s workload to achieve the desired results.

“The two organizational tools every retailer should use are a CRM activity scheduler and a calendar scheduler.”

Tip: To achieve a productive zero inbox for communication tools like email and text, triage into four segments every day:

Do it (right away).
Delegate it.
Schedule it (with a CRM activity).
Delete it!

Conclusion

Innovation isn’t luck. It’s leadership-driven, culture-supported, executed by doers, and measured relentlessly. It requires grit, belief, and investment. Although it can make people feel uncomfortable, companies that commit to innovation consistently outperform the rest. If you’re serious about driving meaningful, lasting change, look at these 10 areas—and ask, are we ready to do the necessary, sometimes hard, work? Innovation works—but only if you work it.

About David McMahon

David McMahon is founder of PerformNOW Inc. PerformNOW has three main products that help home furnishings businesses improve and innovate: Performance Groups (Owners, Sales managers, Operations), PerformNOW CXM (Customer eXperience Management systems and processes), Furniture business consulting. Your can reach David at [email protected].