Amidst the evolving landscape of modern retail, Clarks, a venerable 200-year-old shoe retailer, embarked on an extensive digital transformation to upgrade its antiquated IT infrastructure. This was driven by an urgent need to rejuvenate operations and elevate customer experiences. Supported by the innovative MACH Alliance, Clarks’ monumental overhaul has not only rejuvenated the company’s operations but also provided substantial returns on investment. This transformation has positioned Clarks favorably for continued advancement in the dynamic retail sector.
The Urgency of IT Modernization
Clarks was facing a critical need to update its e-commerce platforms and store point of sale systems, which were over two decades old. The aging infrastructure threatened the company’s operational stability, with a risk of potential collapse within a year. This predicament is not unique to Clarks, as evidenced by a MACH Alliance survey that revealed 41% of large organizations still rely on legacy IT systems. This stark statistic highlights a widespread industry challenge and underscores the urgency for Clarks to adopt a more agile and adaptable technology system to meet contemporary consumer expectations.
In 2022, determined to break away from its outdated technology, Clarks embraced a modern, flexible architecture designed for consistency and customer personalization. This decisive move marked the beginning of a radical transformation of both its digital and in-store platforms, with the entire process completed within an exceptionally rapid timeframe of just a year and a half. This swift overhaul underscores the importance of timeliness and agility in the face of an increasingly demanding retail environment.
The Role of the MACH Alliance
The MACH Alliance, established in 2020, played a critical role in facilitating Clarks’ transformative journey. As a non-profit association, the MACH Alliance offers invaluable guidance, sets essential technology standards, and supports retailers and other enterprises in adopting future-proof, open, and composable technology stacks. This support was pivotal for Clarks as it navigated the complexities of its comprehensive IT overhaul.
The principles of Microservices, API-first, Cloud-native, and Headless architecture (MACH) provided Clarks with the necessary flexibility and scalability required for modern retail operations. By adopting these principles, Clarks was able to create a more agile and responsive IT infrastructure, capable of adapting to rapidly evolving consumer demands and technological advancements. This strategic alignment with MACH principles enabled Clarks to harness innovative technology and improve its service delivery significantly.
Achieving Remarkable Returns
The technological overhaul brought substantial returns for Clarks, manifesting in multiple areas of business performance. The company saw a 17% increase in customer conversions, a 28% enhancement in site speed, a 79% rise in add-to-basket rates, a 47% improvement in the start-checkout rate, and stronger gross margins. These remarkable figures demonstrate the potent impact that a modern, agile IT infrastructure can have on overall business performance, setting a powerful example for other retailers considering similar transitions.
The transformation project commenced in earnest in July 2022, with a target completion date set for June 30, 2023. Development kicked off in January 2023, and by August 2, 2023, Clarks had successfully launched its first updated store in the U.S. This brisk and efficient pace of execution illustrated both the MACH Alliance’s effective approach and Clarks’ firm commitment to modernization. The swift implementation ensured that the company could quickly reap the benefits of its new systems, improving both customer experiences and operational efficiency.
Enhancing Customer Experience
The digital transformation included the integration of modern payment options like Apple Pay and Google Pay, broadening the ease of transactions for customers. Full omnichannel capabilities, including gift cards, exchanges in the U.S., and returns in the U.K., were also introduced. These enhancements made shopping more convenient and seamless, substantially elevating the customer experience. New features such as video content, product placement, full translations, and a streamlined single-click checkout process were added, further simplifying customer interactions.
Moreover, the addition of real-time inventory and reporting capabilities marked significant advancements from the previous system. These new capabilities not only enhanced customer experience but also boosted operational efficiency. By providing accurate and immediate data, Clarks could better manage its inventory, streamline logistics, and respond more effectively to customer needs. These technological improvements have ensured that Clarks stays competitive in the ever-transforming retail market, where consumer expectations are continually rising.
Strategic Planning and Change Management
Meriel Neighbor, Clarks’ Head of Global Digital Product, Delivery, and Transformation, emphasized the importance of agility and thorough due diligence in partner selection throughout the transformation journey. She highlighted the need for full business engagement, wherein all facets of the organization are involved and aligned with the transformation objectives. Specific advice included prioritizing checkout development, ensuring dedicated resources, and maintaining seamless business transitions. This comprehensive strategy has been instrumental in Clarks’ successful adoption of modern retail technology.
Holly Hall, managing director of the MACH Alliance, underscored the necessity for retailers to embrace a flexible and incremental approach to technology adoption. She stressed the importance of investing in overarching digital strategies rather than fixating on specific technologies or vendors, as organizational needs and tools evolve over time. Hall noted the significant enrichments that modern, composable tech architectures could bring, such as enhancing e-commerce capabilities and improving omnichannel customer engagement. This perspective has been vital in guiding Clarks through its digital transformation.
Preparing for the Future
In the ever-changing world of modern retail, Clarks, the distinguished 200-year-old shoe retailer, undertook a significant digital transformation to refresh its outdated IT infrastructure. This necessity was driven by an urgent need to revitalize its operations and enhance customer experiences. Backed by the groundbreaking MACH Alliance, Clarks’ major overhaul has not only revitalized the company’s internal processes but also yielded remarkable returns on investment. This transformation has strategically positioned Clarks for sustained growth and success in the rapidly evolving retail landscape. As digital technologies continue to reshape the retail industry, Clarks’ proactive approach ensures it remains competitive and responsive to consumer demands. By embracing a forward-thinking mindset and leveraging cutting-edge innovations, Clarks is well-equipped to navigate the future, maintain its long-standing reputation, and continually offer exceptional service and products to its customers. This digital shift underscores the importance of agility and modernization for legacy brands in today’s market.
