Decision-making for commercial and customer teams is getting harder in today’s fast-evolving trading environment – not due to a lack of data, but because of growing ambiguity in how retail channels and formats are structured. For many FMCG businesses, defining the retail landscape clearly has become one of the most critical, yet overlooked, challenges.

Retail channels are no longer what they once were. Formats have multiplied, missions have shifted, and even across sales, customer, marketing and category teams, there’s often no consistent definition of what counts as a supermarket, a discounter, or a wholesaler. This misalignment makes it difficult to plan, execute or measure effectively – and can result in disjointed strategies or duplicated efforts.
 

The Rise of Channel Complexity

What was once a clearly segmented retail environment has become increasingly fluid and overlapping. Channels that were traditionally defined by role or format are now harder to distinguish. A discount store can feel like a compact supermarket. A wholesaler can be the main destination for a family shop. E-commerce platforms can serve both stock-up and top-up needs, sometimes within the same day.

At the same time, structural shifts are reshaping how products flow through the system. The once-linear route to market – supplier to wholesaler to trader to shopper – has evolved into a far more complex, interactive ecosystem. A midi-wholesaler may serve both traders and household shoppers. Corporates are offering bulk packs to informal retailers. New hybrid formats, direct distribution models, and tech-enabled platforms are creating fresh routes to shoppers.
 

Even within standard categories, shopper channels are no longer confined to format or income band – forecourts cater to top-up missions, discounters compete with mid-market supermarkets, and online platforms blend fulfilment models.

The result is a retail architecture that no longer follows straight lines. Shoppers move between channels – but many internal business plans still rely on frameworks that no longer reflect how the market actually works.

Without a clear view of today’s retail architecture, across both sectors and shopper channels, FMCG and retail businesses are left vulnerable to strategic misfires and misallocated resources.
 

What Happens When Channels Get Lost in Translation
 

Without consistent channel definitions, the risk of misaligned decisions grows:

• Promotional calendars may not match the shopper’s reason for being in the store
• Price ladders can get distorted if the format’s main shopper mission isn’t understood
• Investment planning becomes inconsistent across channels
• Growth segments are overlooked because they get lost in the noise

Misunderstanding or oversimplifying a channel’s role can quietly erode performance over time – even when headline numbers look acceptable.
 

One Shopper, Many Missions
 

The idea of format loyalty is increasingly outdated. Shoppers are pragmatic. They’ll use a forecourt on the school run, a discounter on the weekend, and a delivery app when time is short. Mission-based shopping is the new norm.

Planning for this requires more than sales data. It demands a structured understanding of how each retail channel intersects with shopper behaviour – and how those intersections shift depending on context.

Seeing the Structure, Not Just the Sales
 

Channel clarity is about making the right trade investment decisions and improving how businesses operate.
That means having:

• A consistent set of channel definitions across the business
• Quantified sizing and forecasts by sector and sub-channel
• Insights into what drives shopper behaviour in each route to market
• A unified view of your category’s role in the channel and format to help teams work off the same strategic map

This clarity allows for prioritisation, smarter resource allocation and alignment of commercial, category, marketing and customer teams.
 

From Insight to Advantage

With economic conditions remaining fragile, commercial performance increasingly hinges on where and how businesses focus. Channel clarity allows organisations to invest with confidence – knowing which formats are growing, which are consolidating, and how shopper needs are evolving.

As the trading environment continues to shift, FMCG players will need to update more than just their numbers. They’ll need to refresh the frameworks they use to understand the market itself.