Retail IT can - more often than not - seem like the Wild West.
There’s always a new frontier to be explored, there’s promises of gold over the next hills, and there’s a clamor for attention from vendors everywhere convinced they have the ‘next best thing.’
Stepping into this world can be both daunting and overwhelming. But it’s much easier when you have an expert to guide you.
Peter Joelsson, CIO at Webhallen and former Global IT Director at GANT , has spent over 20 years navigating the ever-changing world of retail IT.
In this interview, Peter shares his insights on moving away from legacy systems, embracing a best-of-breed approach, and the importance of focusing on people as much as technology. He provides valuable advice for retail IT leaders on building future-ready ecosystems and how to meet the rising expectations of today’s customers.
Peter, you've had a long career in retail IT, including roles at GANT and now Webhallen. Could you start by telling us what you've learned along the way?
– Wow, where to begin? I've been working in IT for over 20 years, primarily in retail, and have held leadership positions throughout. My specialty has always been in acquiring new systems and suppliers - I've done a lot of that over the years. It's something I enjoy because it allows me to look beyond just the current requirements and focus on the potential for the future.
– Right now, I'm at Webhallen, and for the first time, I have my own development team, which is a fun change. Before this, I was always working with external teams to implement a wide range of systems. Before Webhallen, I was with GANT, handling IT strategy and systems for their retail and wholesale operations across 200+ stores globally.
– What I’ve always done is look at IT from a strategic level - thinking long-term, not just about what we need today but what we'll need in two or three years. That’s actually how I first came across Sitoo, around five years ago, when I was helping GANT set up in China. Although we didn't end up using Sitoo then, it was clear to me that they had the potential to grow alongside us, which is something I always look for in a supplier.
– At the end of the day, I believe in working with people, not just tools. The technology has to be strong, of course, but it’s the people behind it who make the real difference.
You’ve mentioned that you look for potential when choosing a supplier. What’s top of mind when you’re acquiring new systems?
– For me, the top priority is potential. I really dislike getting stuck with a system that only meets today’s needs. So, I always look beyond the current requirements and think about where the company is heading. How does this tool fit into our long-term roadmap, and how will it evolve with us?
– I’m not just looking at what the system can do today but what it will be able to do tomorrow. Will it evolve with our needs? Is there flexibility built in? You don’t want to get stuck with a system that meets today’s demands but becomes obsolete when your business changes.
– After that, it’s about the people - are they the kind of people I want to work with? Do they share our vision? It’s crucial to be on the same page. Of course, the approach can vary depending on the type of system you’re acquiring. For something like SAP, you need a more detailed, thorough evaluation. But for tools like POS or workforce management, it’s more about assessing the potential and flexibility.
– With all the new tech emerging, like AI, it’s even more important to choose solutions that are open to innovation and future growth. To me, potential means finding tools that we might not need fully right now but will be critical in two or three years.
Let’s talk about the shift from legacy systems to a best-of-breed approach. What’s changed the most in the retail IT landscape?
– The biggest change is that it’s no longer about having one system to rule them all. It used to be that you bought one tool to do everything. Today, the game has changed. Now, it's about multiple systems working together. This best-of-breed approach allows you to cherry-pick the best solution for each need - whether that’s POS, payments, or inventory management - and then integrate them.
– The key is integration. There are so many fantastic tools out there, but they all need to talk to each other.
– At Webhallen, we’ve been transitioning from a legacy system that was built in-house to a more open, integrated ecosystem. The question we constantly ask ourselves is: What’s our secret sauce? What value can we uniquely deliver that others can’t? For example, why should we build our own omnichannel solution when others have already perfected it? Instead, we focus on what makes us great and let others do the things they are best at.
– That’s been the biggest change over the last two decades - filling gaps with the best new technology rather than trying to force one system to do it all.
You’ve touched on challenges. What scares some CIOs about adopting a best-of-breed strategy?
– I get why some people are hesitant. When you move to best-of-breed, you go from having one system to maybe five or six different suppliers. That can be overwhelming. It’s not just one contact anymore; it’s managing relationships with multiple vendors. But in my experience, the benefits far outweigh the complexities.
– The future is best-of-breed, and the sooner retailers embrace it, the better. Yes, there are overlaps, and figuring out which system handles which function can be tricky. But once you’ve made that leap, you gain agility and flexibility that’s impossible with a monolithic setup.
– At Webhallen, I’m currently building out our best-of-breed strategy, so I get to make these choices. But if you're coming from a legacy system, it can be tough because you’re used to doing things a certain way. The key is to evaluate your organization’s needs, see where the gaps are, and decide which tool makes the most sense for each process.
– Finding the right balance, especially for omnichannel, is crucial. You have retail, ecommerce, and backend systems like OMS, and figuring out where to drive each part of the process can be challenging. Every system wants to offer as much functionality as possible, but you need to be clear about how you want to handle things like payments and customer interactions across all channels. It’s important to think carefully and strategically about how you want everything to work together.
Given your time at GANT, what lessons have you carried into Webhallen?
– GANT and Webhallen are very different, but both had legacy systems in place. What I took from GANT is the value of building a strong ecosystem of suppliers that can drive your business forward. At GANT, we embraced a best-of-breed strategy, but like with any new approach, you discover gaps along the way - particularly when it comes to omnichannel.
– At Webhallen, I’m applying what I learned to avoid those gaps, especially around integration and ensuring our systems work seamlessly across channels. The omnichannel experience is key - it’s the grey area between ecommerce and physical stores that really needs attention.
What advice would you give to other CIOs or IT leaders thinking about making the switch to best-of-breed systems?
– First, know where you’re starting from. You can’t build a best-of-breed system if you don’t have a clear picture of where you are and where you want to go. Start small — figure out what you need to fix first, where the pain points are, and then build from there.
– Also, don’t try to do everything at once. Slice it up. Focus on the areas that will have the most immediate impact. For example, at Webhallen, we didn’t replace everything at once. We started with the front-end systems that interact directly with customers and worked our way back.
The retail landscape is constantly evolving. What do you think are the biggest challenges for retailers right now?
– It's a tough landscape to navigate right now. There’s constant debate about whether brick-and-mortar stores are fading away or if online should take priority. It’s hard to know where we stand, but for me, it’s all about building capabilities. Customers expect a certain level of service now. For example, if they come into a store and the product isn’t available, they expect an immediate solution - whether that’s getting it from the central warehouse or having it delivered the next day.
– Retailers need to meet these basic expectations. Customers don’t care if you have the product in-store or in a warehouse; they just want to know when they can have it. Retailers need to have the systems in place to meet these expectations seamlessly.
– It’s easy to deploy new services, but it’s much harder to create sustainable services that cover every angle. You have to think beyond just selling a product. How will it be returned? How will it be tracked? Where does the process start and where does it end? Many retailers overlook this. Deploying services is the easy part - building sustainable, 360-degree services is the real challenge.
Finally, what excites you about the future of retail and retail tech?
– What excites me? Honestly, it’s less about new tech these days and more about working with people. Don’t get me wrong, I see the potential in AI and all the new technologies, but my focus has shifted. What really motivates me now is problem-solving with my team - finding solutions together, whether it’s for a project or an everyday challenge.
– I was on a panel recently, and someone asked what new tech excites me. My response was that we haven’t even fully deployed the technology we’ve had for the last five years. Everyone’s talking about AI and machine learning, but in retail, we’re still struggling with the basics - having the right products available at the right time, the right prices, and meeting customer expectations. Too often, retailers don’t realize they’re failing - customers come into a store and leave when they don’t find what they want but retailers aren’t measuring this.
– For example, why do we refill a popular product four times a week with only two pieces each time? That’s a system issue. Technologies like RFID, which have been around for a decade, still aren’t fully utilized in many places. So, while new tech is exciting, I think the real challenge is leveraging the tools we already have, to solve fundamental problems in retail.
Peter Joelsson’s Top Tips for Retail CIOs
Think long-term: Look beyond immediate needs. Choose systems that can grow with your business.
Best-of-breed is the future: Embrace the flexibility of multiple systems and focus on seamless integration.
Start small: Focus on the areas that will have the most impact and build your ecosystem piece by piece.
Integration is key: Ensure all your systems talk to each other to provide a smooth omnichannel experience.
People matter: Working with suppliers who share your vision is just as important as the technology itself.
Continue reading: The ultimate POS system roll out guide
Inspired by Peter’s journey? The same principles apply to any successful rollout. Download the playbook that shows you how leading retailers like Varner and Rally House rolled out Sitoo across hundreds of stores with record speed, lower costs and better results.
