The retail transformation gap: Why mid-sized and DTC brands are outpacing the giants

Retailers understand the urgency of modernisation, yet insights from ‘The Race to Unified Commerce’  – a recent report by retail technology specialists PMC – expose a growing execution gap. As customer expectations evolve, it’s not the biggest players, but the most adaptable ones that are taking the lead.

In a market defined by speed and connected experiences, mid-sized and digitally mature direct-to-consumer (DTC) brands are outperforming the legacy giants. Our survey of 100 retailers found that those with revenues between £500m and £1bn, along with fast-scaling DTC brands, are delivering better outcomes across the unified commerce spectrum.

They’re not just experimenting; they’re executing, accelerating, and scaling smarter.

Speed, simplicity, and smarter systems
Real-time visibility. AI-powered engagement. Unified checkouts. These are no longer future goals, they are active differentiators.

Mid-sized businesses, with fewer barriers and bolder intent, are investing in scalable systems that drive agility. Whether it’s dynamic order management or real-time stock optimisation, these capabilities aren’t add-ons they’re enablers of full-price sales, fulfilment accuracy, and operational efficiency.

This isn’t about size. It’s about digital maturity and the willingness to move faster, with sharper focus.

DTC advantage: Born unified
For digital-native DTC brands, unified commerce is less of a transformation and more of a default. Their integrated stacks, leaner operations, and direct access to customer data mean decisions happen in real-time, not through committee.

This structural simplicity translates into better personalisation, higher margins, and faster pivots – all hallmarks of scaling smarter.

Unified checkout: Friction is the enemy
Whether customers tap, click, or walk in, they expect consistency. Nearly 90% of mid-sized players deliver unified checkout experiences, versus just 70% of larger retailers. The payoff? Higher conversions, smoother journeys, and deeper loyalty.

For brands looking to scale, this is a low-hanging win that underpins trust and drives results.

AI and analytics: Smart tech with a purpose
AI-driven personalisation and centralised analytics are separating the frontrunners from the fragmented.

Smarter personalisation = smarter revenue
Centralised analytics = smarter decisions

While larger enterprises often struggle to activate insights across complex estates, digital leaders are using data as fuel not friction.

Modular commerce: built for change
The future belongs to brands that are modular by design. These systems don’t just support change, they invite it.

Only 28% of all respondents report a fully modular stack, but among digital leaders, that number jumps to 70%. These brands are primed to integrate new AI tools, payment methods, and service layers without disruption and that’s the essence of building for scale, not just survival.

Conclusion: The execution gap is a strategic choice

The path to unified commerce isn’t blocked, it’s just unevenly paved. Mid-sized and DTC brands are proving that execution is the real differentiator.

At PMC, we believe that with the right mix of ambition, adaptability, and investment in scalable, smart technology, any business can transform its trajectory.

The takeaway? The brands scaling smarter are already gaining ground. To find out more, download the full report: The Race to Unified Commerce