Successful retailing these days “is a lot about excellence in execution,” says Santiago Gallino, Wharton’s Charles W. Evans distinguished faculty scholar and associate professor of both marketing and operations, information, and decisions. But reaching the level of perfection that customers expect nowadays may never have been harder. “Retail businesses need to do a lot of things well every day,” says Gallino, whether they’re catering to customers in-store, online, or in places as unusual as a neighbor’s backyard.
A major key to success is a seller’s supply chain, an operational pillar that’s so important to delivering goods quickly and affordably that Gallino spends an entire course — Retail Supply Chain Management — delving into the details with MBA students. Key course materials illustrate new trends — as well as evergreen principles underpinning them — that retailers are applying to their product pipelines to ensure seamless shopper experiences.
“How to Win in an Omnichannel World”
Co-authored by Gallino, this MIT Sloan Management Review article illustrates a foundational course concept: “There’s this perspective that online and brick-and-mortar retail are independent,” says Gallino, who urges students to nix the notion. “Sometimes, the silos that retailers create to understand dynamics are not reflective of the reality of the business.”
“How Home Depot Cracked the Home Professional Market”
The place that helps doers get more done has taken a golden retail rule — “Understand your customers” — to the next level in ways that have significantly transformed its operations, per this Wall Street Journal video. Started as a business for DIY-ers, Home Depot has revamped its supply chain and opened new distribution centers in recent years to tap into enthusiasm from the carpenters, plumbers, and other professionals who now account for roughly half its sales. It’s a successful case of reconfiguration that could serve as an example for other traditional retailers.
“The Magic Behind Shein’s Rise Comes Under Threat: Duty-Free Shipping”
Online retailers such as Shein and Temu have burst onto the scene with a super low-cost model that has used shipping loopholes to cheaply deliver products from Asia to customers around the world. The U.S. loophole, which exempted imports valued at less than $800 from shipping duties, was closed in May. Gallino includes this Wall Street Journal article as a crash course on the exemptions and the rise of these retailers.
“Understanding the Trade-Offs of the Amazon Antitrust Case”
A looming trial in a lawsuit filed by the Federal Trade Commission, several states, and Puerto Rico against Amazon will determine whether the company has used its position as an e-commerce leader to suppress competition. This Harvard Business Review article breaks down the main allegations. “Amazon is interesting because of how much it affects what other retailers are doing,” says Gallino, noting that the outcome could ripple across e-commerce.
“Urban Outfitters Sees a $1 Billion Business in Taking On Rent the Runway”
Fashion-rental businesses like Rent the Runway appeal to shoppers who want to wear the latest styles while reducing overconsumption. As evidenced by sales and subscribers, there’s potential in this circular business model — an opportunity that retailer Urban Outfitters has sought to capitalize on with its Nuuly brand, per this Bloomberg report. Gallino and his students examine opportunities and challenges in the space, especially for businesses that rely on seasonal trends. “If you take two weeks to make the product available again, you’re missing a large portion of the renting season,” says Gallino, stressing the importance of optimizing operations to quickly redistribute in-season clothing.
“How Grocery Stores Should Respond to the Growth of Online Markets”
Authored by Gallino and Wharton UPS professor of operations, information, and decisions Marshall Fisher, this article explores traditional grocers’ online offerings and their long-term unsustainability. “One thing retailers cannot continue doing is the common model of free order picking and curbside delivery,” the authors write, offering three alternative options.
“Are Everywhere Stores the New Face of Retail?”
A fledgling retail category, “everywhere stores” have emerged as a way to meet customers exactly where they are. This MIT Sloan Management Review piece written in part by Gallino breaks down the model and identifies companies that do it well. Take, for example, Outer, which lets prospective buyers try outdoor furniture in existing customers’ backyards. “The fact that you can enjoy a product, perhaps with friends,” says Gallino, “adds an experiential component.”
Published as “Retail’s New Rules” in the Fall/Winter 2025 issue of Wharton Magazine.
