In today’s omnichannel retail world, physical stores are doing double duty: they serve shoppers in-store and act as local fulfilment hubs for online orders.  Gone are the days when a store was just a sales floor; modern customers expect the store to deliver orders quickly, whether by curbside collection or fast home delivery.  This guide explores the evolution of store fulfilment, the main models retailers use today, and how technology, strategy and execution come together to drive growth.  We look at global trends and examples (including Australia’s) to provide a comprehensive, practical roadmap for senior retail leaders seeking to leverage every store as a growth driver.

Modern shopping is multi-channel.  A growing share of retail is bought online from home or on mobile devices. Consumers expect to buy online and pick up in store, curbside or have items shipped the same day from a nearby shop. In fact, a 2020 Australian study found over 80% of households shopped online, often using smartphones, and search interest in “click and collect” spiked dramatically during COVID-19. Retailers must therefore break down silos between e-commerce and brick‑and‑mortar.  Stores today can be mini-warehouses: sending orders out to nearby customers as well as greeting walk‑in shoppers. This shift is strategic: it reduces delivery times and costs, unlocks excess store inventory, and creates seamless customer experiences that boost sales and loyalty.
‍

History of Store Fulfilment

Historically, retail fulfillment followed a simple model: a centralized warehouse would ship products in bulk to retail stores for them to sell, and online orders (when they existed) were shipped from a separate ecommerce warehouse. Each channel ran largely independently. In the early 2000s, as e-commerce took off, many retailers built dedicated online fulfilment centres, but inventory data often remained fragmented. Orders took days or weeks, and returns were costly to handle.

By the 2010s, leading retailers recognized that customers wanted the best of both worlds. Pioneers like Amazon and Walmart began experimenting with ship-from-store and store pickup.  For example, Walmart enabled customers to pick up online grocery or electronics orders at nearby stores, turning its massive store network into a delivery engine.  In Europe and Asia, retailers launched click-and-collect services.  By 2020, the model had shifted decisively: most major chains offer options such as Click & Collect and curbside pickup, and many use stores as micro-distribution centres.  The COVID-19 pandemic accelerated this trend, as lockdowns forced thousands of stores worldwide to service online orders exclusively.

Today, omnichannel fulfilment – blending online and offline channels – is standard for growth-minded retailers. Inventory is synchronized across e‑commerce sites and store shelves in real time, and each store dynamically decides whether to sell an item off the shelf or ship it out.  A 2022 industry review even noted that former “dark stores” (retail locations closed to shoppers) were repurposed into local fulfilment hubs, while many physical retailers now aspire to a unified inventory view across all channels.  In other words, fulfilment has come full circle: the best e-commerce retailers embrace the store just as much as the store leverages e-commerce, all in pursuit of growth and customer satisfaction.
‍

Key Store Fulfilment Models

Retailers now use several models (often in combination) to fulfil online orders via stores. These include:

• Ship‑From‑Store (Distributed Fulfilment). The retailer leverages its store network to ship online orders directly from the nearest store to the customer’s address. This reduces delivery time and shipping costs by using existing inventory on store shelves rather than a distant warehouse. It also raises each store’s sales volume and asset utilisation. For example, a fashion retailer with many locations can let the store staff pack and ship orders – turning every store into a mini-fulfilment centre. Ship-from-store requires real-time inventory data and efficient order routing: the system selects which store has the item and is closest to the customer. The result is faster deliveries and less capital tied up in excess stock. Major chains like Target and international brands like Zara have adopted this model to quickly find sold-out items in nearby stores for online customers.
• Click & Collect (Buy Online, Pick Up In-Store). Customers order online and then pick up their purchases at a chosen store. The retailer holds the item in stock and prepares it for the customer to collect at the counter or a special pickup desk. This model is hugely popular because it combines online convenience with free and quick pickup (often same or next day) without delivery fees. It also drives foot traffic: customers picking up an order are likely to browse or buy additional items. Click & Collect works best for goods that don’t need assembly (apparel, cosmetics, books, etc.). Retailers must establish clear workflows: notifying stores of incoming pickups, dedicating space to stage items, and sometimes offering lockers or curbside handoff. Industry data shows adoption has surged, especially since 2020, and studies credit BOPIS with boosting conversion rates by up to 50–60% in early adopters (as more customers complete purchases when offered store pickup).
• Curbside Pickup. A variant of Click & Collect, curbside service lets customers remain in their car or collect at the door. The store prepares the online order and moves it to a reserved parking spot or entryway. A staff member greets the customer and loads the car – entirely contactless. This model saw a boom during the pandemic (when minimal contact was paramount) and remains a convenience flagship. Stores typically install clear curbside signage and integrate app check‑ins to alert staff. For example, a national retailer might assign dedicated “online orders” parking bays where customers scan a QR code or text on arrival. Curbside pickup maintains the speed of BOPIS while removing the need to enter the store, adding value in grocery, electronics or homeware retail where large purchases need loading.
• Reserve-and-Collect (Online Reservation). This lets customers reserve an item online or via mobile and then collect it later (often within a day or two) at the store of their choice. It’s popular for limited-stock items or fit trials (e.g. clothing or eyewear). Since the customer isn’t paying until they see it, this model focuses more on customer experience than fulfilment per se. But it still ties online systems to in-store inventory.
• Dark Stores and Micro-Fulfilment Centers. In dense urban markets, retailers sometimes convert part of a store or a warehouse-like facility into an orders-only shop. These “dark stores” aren’t open to retail shoppers but are arranged for rapid picking. They may use automation and optimised layouts to fulfill online grocery or small-ticket orders. For instance, Alibaba’s Hema supermarkets run each outlet partly as a distribution centre: orders made online are picked off shelves and delivered within 30 minutes locally. In effect, every store can become a mini-warehouse with its own pickers, especially useful in grocery or fast-moving consumer goods.
• Marketplace Integration. A newer model is turning stores into logistics partners for external marketplaces. A retailer may allow third-party sellers to list items on its e-commerce site, or it might partner with delivery platforms. Some tech providers (like Awayco’s marketplace tools) enable a retailer to become a “town centre” marketplace, combining its inventory with service bookings or rental listings. This doesn’t directly affect store fulfilment in the traditional sense, but it expands what the store can handle (for example, fulfilling orders from marketplace vendors in its network).
• Endless Aisle (In-Store Ordering). In-store clienteling apps or kiosks let sales staff or customers order out-of-stock items from the store’s inventory or the online warehouse on the spot. The store acts as the point of sale, but the fulfilment can be from the same store or shipped from a central DC. This blurs physical and online further, promising that “everything in the retailer’s catalog is available, no matter the store’s actual shelf space.”

Each model has pros and cons. Ship-from-store maximises existing stock but adds complexity. BOPIS is easy to adopt but requires careful inventory holds. Curbside adds service but needs designated parking. Dark stores and automation require capital investment. Smart retailers often use multiple models together – for example, offering both ship-from-store and click-and-collect so customers can choose the fastest or most convenient option.
‍

Technology and Processes

Behind these fulfilment models lies a layer of enabling technology and processes. The key is real-time data and integration:

Unified Inventory and Order Management:

The cornerstone is a system (OMS/WMS/POS) that sees every store’s inventory. Modern retail platforms unify e-commerce and store stock so that online stock counts are never stale. Staff can view live inventory on handheld devices or POS terminals. For example, providers like Awayco emphasise “true omnichannel” through real-time stock visibility – so if a customer buys online, any store with the item can see and process it immediately. In practice, this means implementing an integrated e-commerce platform and mobile POS that share the same database.

Unified Demand Forecasting:

To support effective fulfilment, retailers must forecast demand holistically – across both online and offline channels. Unified demand forecasting considers not only walk-in foot traffic and historical in-store sales but also the volume of online orders fulfilled by each store. This ensures accurate replenishment and stock allocation, so that stores are neither overstocked nor underprepared to serve both local shoppers and fulfilment needs. Advanced forecasting tools factor in seasonal patterns, promotions, and real-time sales trends to predict blended demand at the store level. With accurate forecasts, retailers can optimise inventory placement and avoid missed sales opportunities due to out-of-stocks caused by unexpected spikes in online orders routed to physical stores.

Mobile POS and In‑Store Devices:

Empowering store associates with tablets or smartphones has become essential. With a mobile POS, a sales rep can look up products, check availability at all nearby stores, create a pick ticket, and even print a shipping label on the spot. These tools let stores operate as part of a unified retail network. Even small retailers are deploying Wi-Fi scanners and label printers at the back of house so that when an online order arrives, a staffer simply scans and packs the item immediately.

Shipping and Delivery Integration:

Software platforms now automate delivery booking. Instead of manually booking carriers, the order management system can auto-select the fastest courier from the store, print labels, and send tracking info to customers. This complexity is abstracted by cloud shipping APIs. Retailers like Harvey Norman used a single delivery platform to standardise shipping across all 180+ stores, enabling consistent same-day options nationwide.

Customer-Facing Technology:

Online, websites and apps must clearly present fulfilment options. Customers should see real-time stock levels (“6 in stock at your nearest store”), pickup timeslots, and delivery estimates. Geolocation tools help suggest the best store for pickup or same-day delivery. In-store, appointment booking (for services) and loyalty integration keep the channel unified. For example, a unified loyalty system can apply online coupons to in-store orders and vice versa.

Process and Staffing:

Technology must be matched with disciplined processes. Stores designate staff roles (picker, packer, customer ambassador for pickups). They define cut-off times for same-day or next-day shipping and train employees on new workflows. For instance, one retailer created a simple app push that alerts stores of pending online orders, with “Accept/Reject” buttons so the store confirms it can fulfil the order. Policies around shipping fees, returns, and in-store pickups must be defined clearly. Some retailers also introduce performance incentives (e.g. bonuses or sales credit) for staff who efficiently handle online order fulfilment.

In sum, the right software and hardware – from OMS to mobile scanners – are essential. They allow every store to live up to its potential as a fulfilment node. Without real-time inventory, accurate demand forecasting, and a unified order pipeline, none of the store-based models will work smoothly.
‍

Implementation Strategy and Best Practices

Turning store fulfilment models into growth engines requires a strategic rollout. Key best practices include:

• Centralize and Synchronize Data: Start by integrating your systems. Implement or upgrade to an omnichannel platform where inventory, pricing and order status are shared across channels. Consolidate POS, ERP and e-commerce databases. This will eliminate stock discrepancies (e.g. selling out-of-stock items) and build customer trust.
• Pilot and Scale Gradually: Choose a subset of stores or regions for initial rollouts. Test one model at a time (e.g. begin with ship-from-store for a specific category). Learn from early issues (inventory inaccuracies, staffing bottlenecks) before expanding chain-wide. For example, a retailer might launch click & collect in its 10 largest stores, refine the alert-to-pick process, then enable it for all locations.
• Train and Empower Staff: Store associates must wear dual hats as salespeople and order fulfilers. Provide clear training on the new workflows – from receiving a pick ticket on a tablet to packaging and handing off a curbside order. Empower them to make decisions (e.g. swapping an equivalent item if one SKU is out of stock) and reward them for success. Often, high-level buy-in (from store managers to franchisees) is crucial, so involve them in planning and let them see the benefits (like shared sales credit for fulfilling online orders).
• Optimize Inventory Placement: Use data analytics to stock stores strategically. Fast-moving or bulky items may be better kept at distribution centers, while bestsellers and high-margin items sit in stores. Implement inventory balancing (transferring stock between stores) to reduce local stockouts. Many retailers enable a “ship from DC or store” priority rule in software to manage this logic. Also consider regional assortments – a beach town store might carry different overstock than an inner-city location, for example, improving local fulfilment rates.
• Ensure Excellent Communication: Keep customers informed at every step. When they choose BOPIS, send automated notifications when the item is ready, with clear pickup instructions. Similarly, provide live tracking if store orders are delivered, or alerts for curbside arrivals. Clear communication reduces failed pickups and returns.
• Offer Flexible Delivery Options: Give customers choice (at checkout) between fastest or cheapest options. For instance, use rules engine software to let the customer pick “Fastest Delivery (may cost more)” or “Collect in 2 days for free”. Examples show that giving customers flexibility not only improves satisfaction but also can raise conversion, as shoppers are more likely to complete a purchase if a convenient option is available.
• Measure and Refine: Track key metrics such as on-time fulfilment rate, in-stock accuracy, carry-out rate (how often customers pick up their click & collect orders), and the incremental sales from upselling at pickup. Use A/B tests if possible (e.g. one group of customers offered BOPIS, another not) to quantify impact on sales. Continuously refine policies (e.g. pickup windows, restocking deadlines) based on what the data tells you.

Implementing omnichannel fulfilment is often an iterative journey. By gradually layering models and continuously improving processes, retailers can extend their reach and speed without taking on unsustainable costs. With proper execution, store fulfilment becomes a competitive edge, not just a logistical necessity.
‍

Case Studies: Retailers in Action
‍

Intersport Australia (Sports & Apparel) – Franchise Click & Collect.‍

‍

InterSport Australia, a franchise network of sports retailers, provides a real-world example of a successful store pickup rollout. By 2020 they partnered with a specialist omnichannel platform to enable click & collect in 70+ stores. Because half the stores were franchised and had fragmented systems, the new solution had to be user-friendly. As a result, when customers shop online they can choose a local store for pickup; the stores receive an electronic order, accept it, and prepare it for collection. Remarkably, after launch (just before the COVID-19 lockdown), their online conversion rates jumped by roughly half. In peak lockdown month, April 2020, InterSport saw record online sales, with over 20% of all online orders fulfilled by in-store pickups. Customers loved being able to get fitness equipment quickly, and many franchisees embraced the added revenue. Today, InterSport continues to grow its network of pickup-enabled stores, confident that investing in this model is “the future” for their business. In their words, click & collect “is everything available (with few bulky exceptions) to really maximize the opportunity,” and early adopters saw conversion rates improve over 50%.

‍
‍Decjuba (Australia/NZ Fashion) – Ship-From-Store Transformation.  

‍

Sydney-founded women’s fashion chain with ~150 stores across Australia and NZ, faced the classic challenge: all online orders were originally sent from a single warehouse in Victoria, causing long waits for distant customers. In 2020 they partnered with a digital shipping platform to activate ship-from-store. In practice, this meant unlocking inventory in 80 of their stores to serve online orders. Store staff could print shipping labels directly from their POS at the back of house. The outcome was dramatic: customers nationwide saw faster deliveries (since orders shipped from nearby stores), and unsold seasonal stock at one location could move to another city. Decjuba also implemented a flexible checkout option letting shoppers pay more for express delivery or wait a few days for economy. Overall, this omnichannel approach boosted customer satisfaction, cut delivery times significantly, and helped clear old stock without heavy discounting.

‍

Harvey Norman (Australia Electronics & Home) – Omnichannel Delivery Platform.

‍

Harvey Norman is one of Australia’s largest home and electronics retailers (180+ stores). After launching e-commerce in the 2010s, the company centralised its shipping using a single platform. Rather than each department booking carriers manually, Harvey Norman deployed a unified fulfilment engine across its network. The result was a massive efficiency gain: fulfilment time (from order to ready-to-ship) fell by nearly 90%. Suddenly, stores could offer same‑day delivery nationwide. Customers gained the ability to choose standard or express shipping with instant quotes at checkout, and track their deliveries in real time via SMS or an app – much like tracking a pizza delivery. From the back end, store managers went from minutes of manual data entry per order to just a couple of clicks to book shipping, freeing staff for customer service. Conversion rates reportedly rose (roughly 10% more online sales) because of faster shipping and a consistent customer experience. In essence, Harvey Norman’s success came from treating all their stores as one combined warehouse network, underpinned by software that automated shipping workflows and integrated loyalty and payment systems.

Each of these cases – in Australia and beyond – illustrates key lessons: flexibility (offering many fulfilment options) drives sales and loyalty; technology integration pays off; and physical stores can be reimagined not just as places to shop, but as multi-purpose fulfilment and marketing centres. The business impact can be measured in faster deliveries, higher conversion, increased basket size, and often, new revenue streams.
‍
‍

Future Trends and Outlook

Store fulfilment models continue evolving. Key trends to watch include:

• Automation and Robotics: Large retailers are experimenting with robots for in-store picking and packing. Micro-fulfilment robots (like those used in automated grocery warehouses) may enter physical retail stores to speed up in-store order processing. Autonomous vehicles and drones may start picking up orders from stores for local delivery.
• Artificial Intelligence: AI will better match stock to local demand, predict which store will handle an order, and optimise delivery routes. Chatbots and voice assistants might help customers order and arrange pickups without needing a website interface.
• Expanded Pickup Networks: Even non-retail locations (libraries, parcel lockers, partner stores) could become alternative pickup points. Convenience will drive innovation: imagine ordering and choosing to pick up at an airport lounge or train station on the same trip, facilitated by a store’s inventory.
• Sustainability Focus: Consumers will reward green fulfilment options. Retailers will optimise fulfilment to reduce carbon footprint (e.g., batching store orders to the same area, using electric delivery vehicles, minimizing returns). Store pickups inherently cut delivery miles, which is a selling point in eco-conscious markets.
• Hyperlocal Services: Subscriptions and on-demand services tied to stores (e.g. same-day fresh groceries, local delivery dinners) will expand. Retailers may partner with gig-economy couriers to make any store a dispatch point for city-wide services.
• Broader Marketplace Roles: Retailers may further evolve into one-stop platforms. For instance, a sporting goods store might let local gear rental businesses list items through its system (as Awayco’s marketplace model suggests), making the store both a sales outlet and service hub.

Overall, the future of fulfilment is about greater speed, convenience and integration. Any retailer not exploiting store-based fulfilment risks falling behind as leading competitors make each store an effective mini-distribution centre.
‍

Strategic Takeaways

• Think Omni-First: Adopt a unified inventory/order system before anything else. Omnichannel isn’t “nice-to-have” – it’s table stakes for growth.
• Leverage Every Store: Treat every retail location as a potential order source or pickup point. More stores in use means lower delivery costs and faster service.
• Prioritise Real-Time Inventory: Customers demand accuracy. Ensure your system shows live stock and only offers what’s truly available, so you avoid cancelled orders and unhappy shoppers.
• Offer Multiple Options: Let customers choose how to get their orders – same-day delivery, next-day, curbside, in-store pickup, etc. Flexibility wins sales.
• Invest in Staff Training: Fulfilment success hinges on store associates. Train and empower your team to handle in-store orders efficiently while still serving customers.
• Measure Results: Track metrics like pickup rates, fulfilment times, and incremental sales from new options. Use data to tweak your strategy continuously.
• Communicate Clearly: Promote your fulfilment capabilities to customers (e.g. “Order by 2pm for same‑day pickup”), and keep shoppers informed at every step. Clarity drives adoption.
• Plan for Scale: Start small (pilot programs) but design systems to scale across regions or countries. Ensure your technology can handle peak loads (festive seasons, promotions).
• Stay Customer-Centric: The goal is to delight customers with convenience and speed. Test new ideas (like locker pickup or live chat help) and be ready to adapt based on feedback.

In summary, strategic store fulfilment is about agility and integration. Retailers who master these models will grow by turning stores into agile fulfilment hubs, meeting modern shoppers’ expectations on every channel. By combining the right mix of ship-from-store, click-and-collect, and other innovative approaches – underpinned by real-time tech and disciplined execution – businesses can boost sales, cut costs, and create a seamless experience that retains customers for the long haul.