The Power of the Store as a Fulfilment Hub: Drive Traffic and Optimize Operations
Naresh Ahuja, Chairman & CEO, ETP Group
Across the world, and increasingly in the Philippines, stores are evolving from being mere points of sale to becoming dynamic fulfilment hubs—serving as the nexus for online and offline operations. This transformation is powered by unified commerce technologies and intelligent fulfilment models such as Click & Collect (Buy Online, Pick-up In Store) and Ship-from-Store, which enable retailers to bridge digital convenience with the immediacy of in-person engagement.
For Filipino retailers navigating rising logistics costs, complex geography, and fast-shifting customer habits, the store-as-hub model is not just an innovation—it’s a strategic imperative.
The Store’s Second Life: From Sales Floor to Fulfilment Engine
Traditionally, fulfilment in the Philippines was centralized—orders flowed from regional warehouses or third-party logistics centres to customers scattered across 7,000+ islands. But this model often led to inefficiencies: delayed deliveries, high shipping costs, and inventory imbalances. In contrast, using stores as mini-distribution centres—enabled by real-time inventory visibility—has proven far more effective.
By leveraging physical retail footprints, retailers can now fulfil online orders closer to the customer, significantly reducing delivery times and operational costs. A recent study by McKinsey & Company (2025) found that retailers adopting a hybrid store-fulfilment model reduced last-mile costs by up to 25% while improving delivery times by 40%.
This shift aligns with Filipino shopping preferences, where convenience, immediacy, and trust define purchasing behaviour. According to Nielsen IQ, 68% of Filipino consumers still prefer hybrid shopping—browsing online but purchasing or collecting from stores.
It’s within this evolving context that the modern store becomes a dual-purpose space: a brand experience centre and a fulfilment powerhouse.
Strategic Advantage: Data, Integration, and Unified Commerce
Behind this transformation lies data integration. Unified commerce platforms consolidate sales, customer, and inventory information across every channel—store, website, mobile app, marketplace, and social media—into a single source of truth.
This unified backbone is what allows retailers to confidently execute fulfilment models like Click & Collect (BOPIS) and Ship-from-Store (SFS). Real-time visibility ensures that when a customer places an order online, the system instantly identifies the nearest store with available stock and routes the order for fulfilment—balancing speed, accuracy, and cost efficiency.
“The store of the future is not just a place to sell—it’s a place to fulfil, engage, and optimize,” says Naresh Ahuja, Chairman & CEO, ETP Group. “When retailers harness real-time data to manage inventory and operations seamlessly, each store becomes a powerful hub in a connected ecosystem. Unified commerce transforms what used to be fixed overhead into a dynamic growth engine that improves working capital and deepens customer trust.”
This shift is particularly relevant in the Philippines, where retail density and infrastructure disparities demand operational flexibility. A unified commerce system ensures that regardless of location—be it a flagship store in Makati or a franchise outlet in Davao—data, decisions, and delivery are synchronized in real time.
Click & Collect: A Win-Win for Retailers and Consumers
Click & Collect, or Buy Online, Pick-up In Store (BOPIS), is now one of the fastest-growing fulfilment models in the Philippines. It merges digital discovery with physical engagement, giving customers the convenience of online browsing and the immediacy of in-store pickup.
This model offers multiple advantages:
[ # ] Reduced Delivery Costs: By eliminating last-mile logistics, retailers lower shipping expenses.
[ # ] Increased Store Traffic: Each pickup presents a cross-sell or up-sell opportunity. According to Retail Asia (2024), 47% of customers who visit stores to collect online orders make additional purchases.
[ # ] Improved Customer Experience: Instant product availability builds confidence, especially in high-involvement categories like electronics, fashion, and beauty.
For example, a popular apparel retailer in Manila recently reported that its Click & Collect transactions accounted for 22% of total online orders within six months of launch—while average basket size increased by 18% due to additional in-store purchases during collection visits.
This “reverse traffic” effect demonstrates how fulfilment strategies can also drive sales growth, not just logistical efficiency.
Ship-from-Store: Turning Every Outlet into a Local Distribution Hub
While Click & Collect brings customers to the store, Ship-from-Store (SFS) sends the store to the customer. This model allows retailers to fulfil online orders directly from physical stores instead of central warehouses—leveraging existing inventory and proximity to reduce shipping time.
For a geographically fragmented nation like the Philippines, Ship-from-Store solves two major challenges:
[ # ] Speed: Orders are shipped from the nearest store, ensuring same-day or next-day delivery in major urban centres.
[ # ] Inventory Optimization: Slow-moving stock in one store can be reallocated to meet demand elsewhere, reducing markdowns and stockouts.
According to Asia Retail Insights (2025), retailers using SFS report up to 30% improvement in stock utilization and 20% lower fulfilment costs compared to traditional warehouse models.
The operational complexity of this model demands advanced order orchestration and real-time stock management, which is where unified commerce systems like ETP Unify and ETP V5 excel. These platforms provide retailers with the capability to view, allocate, and fulfil inventory intelligently across all channels—transforming every store into an agile, revenue-generating asset.
Empowering Filipino Retailers with Hyperlocal Fulfilment
Hyperlocal fulfilment—delivering from the store nearest to the customer—is particularly well-suited to the Philippines’ dense mall ecosystem and distributed geography. It combines the trust of local retail with the speed of digital commerce, reinforcing relationships with nearby communities while reducing dependency on third-party logistics.
A grocery chain in Cebu, for instance, uses a unified commerce platform to automatically assign online orders to the nearest branch based on customer location and product availability. This approach reduced delivery times by 50% and increased repeat orders by 35% within three months.
Beyond logistics, hyperlocal models strengthen brand-community bonds, allowing local stores to maintain relevance even as digital channels dominate.
BORIS: Completing the Omni-channel Loop
A crucial yet often overlooked element of omni-channel fulfilment is Buy Online, Return In Store (BORIS). This feature enhances convenience, builds trust, and reduces return costs. Filipino shoppers—known for valuing service and personal interaction—appreciate being able to resolve online returns physically.
Retailers benefit as well. In-store returns often lead to product exchanges or additional purchases, converting potential losses into opportunities. Unified commerce platforms facilitate this process by syncing return data instantly with inventory systems, ensuring accuracy across locations.
Operational Impact: Data, Efficiency, and Working Capital
Turning stores into fulfilment hubs also transforms retail economics.
[ # ] Optimized Inventory: Retailers gain real-time visibility, enabling smarter replenishment and reducing excess stock.
[ # ] Reduced Working Capital: By utilizing store inventory for online fulfilment, capital locked in warehouses is minimized.
[ # ] Improved Loss Prevention: Centralized tracking across channels reduces shrinkage and discrepancies.
A 2025 Deloitte Philippines survey found that omni-channel retailers using integrated fulfilment systems achieved 35% faster inventory turnover and 12% lower working capital requirements compared to single-channel peers.
The Human Element: Reimagining Store Associates as Brand Ambassadors
This transformation is not just technological—it’s human. Store associates, once limited to transactional roles, are now equipped with mobile POS devices and clienteling tools that connect them to customer data, promotions, and inventory in real time.
“Technology should simplify—not complicate—the customer journey,” adds Naresh Ahuja, Chairman & CEO, ETP Group. “In the Philippines, where shopping is personal and community-driven, fulfilment models like Click & Collect and Ship-from-Store build trust by offering choice, speed, and transparency. The result is a seamless experience that feels local yet operates at global standards.”
Ahuja’s statement underscores a core principle of modern retail: that efficiency and empathy can coexist. A store associate armed with a tablet can check stock across branches, reserve items, or process exchanges instantly—offering customers speed without sacrificing the warmth that defines Filipino retail.
For example, a home and lifestyle retailer in Quezon City implemented ETP’s Mobile POS with real-time CRM integration. Within six months, checkout times dropped by 40%, customer satisfaction scores improved by 27%, and loyalty registrations tripled.
Sustainability and Smart Supply Chains
Localized fulfilment also contributes to sustainability. Shorter delivery distances reduce carbon emissions, while optimized stock utilization minimizes waste. This approach aligns with growing consumer demand for ethical and environmentally conscious retail practices.
In a 2024 PwC Philippines survey, 61% of consumers said they were more likely to buy from brands that demonstrated environmental responsibility. By turning stores into smart fulfilment centres, retailers not only improve efficiency but also reduce their ecological footprint—a key factor in long-term brand loyalty.
Challenges in Implementation
Despite its promise, the store-as-hub model comes with challenges:
1. Data Silos: Many retailers still operate fragmented systems for POS, e-commerce, and logistics, making real-time synchronization difficult.
2. Infrastructure Gaps: Connectivity issues across islands can hinder visibility. Cloud-native, hybrid architectures help overcome these barriers.
3. Staff Training: Store associates must adapt to hybrid operational roles, requiring upskilling in technology and customer service.
4. Regulatory Compliance: Adhering to the Data Privacy Act of 2012 is vital as retailers handle larger volumes of customer information.
ETP Group’s hybrid, cloud-native architecture addresses many of these challenges by ensuring real-time connectivity, even in low-bandwidth environments—a critical capability for Filipino retailers with operations spread across diverse regions.
Driving Growth through Unified Fulfilment
The business case for unified fulfilment is compelling:
[ # ] Revenue Growth: Incremental sales through Click & Collect and cross-selling opportunities.
[ # ] Cost Efficiency: Lower last-mile logistics and better inventory utilization.
[ # ] Customer Loyalty: Enhanced trust through reliable, transparent fulfilment experiences.
[ # ] Operational Agility: Ability to adapt promotions, stock, and delivery models in real time.
According to IDC Retail Insights (2025), Southeast Asian retailers adopting store-based fulfilment models report a 20–30% increase in omni-channel revenue within a year of implementation.
Toward a Smarter, More Connected Future
The transformation of physical stores into fulfilment hubs represents a convergence of data, technology, and human experience. It reaffirms the store’s enduring relevance while adapting it for a digital-first world.
Unified commerce solutions like ETP V5 and ETP Unify exemplify how technology can harmonize inventory, CRM, and fulfilment to deliver real-time responsiveness. These systems enable Filipino retailers to not only optimize operations but also preserve what makes their market unique: a culture of warmth, trust, and community.
As retail in the Philippines continues to evolve, the future will belong to those who can blend digital precision with human connection—creating experiences that are efficient, personal, and deeply local.
The message is clear: in the new era of unified commerce, every store can be both a destination and a distribution point—one that drives growth, loyalty, and resilience.
About ETP Group
ETP Group, a software-as-a-service provider specializing in retail and e-commerce, has built its business around artificial intelligence and cloud-native technology. Established 37 years ago, the company works with more than 500 brands across 17 countries in the Asia Pacific region.
Its flagship platforms, ETP Unify and Ordazzle, deliver a broad set of functions for retailers, including omnichannel point-of-sale, customer relationship management, inventory and promotions management, product information management, order and warehouse management, logistics, and integrations with online marketplaces and delivery partners. For large-format stores that face connectivity issues, ETP also offers a hybrid omnichannel solution known as ETP V5.
The company’s unified commerce systems are designed to provide consistent shopping experiences across physical and digital channels. Built on M.A.C.H architecture—microservices, API-first, cloud-native, and headless—the platforms aim to support cloud transformation, improve operational efficiency, and help retailers prioritize customer experience and growth.
Vikrant Deshmukh
ETP INTERNATIONAL PVT LTD
+91 9820308740
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