Developing Retail Business Solutions Using Retail Channel Definition

The Retail Channel Definition for Small Businesses was created by Troy Hoover, an entrepreneur who has been active in the retail industry for over 35 years. In order to create a robust framework for a retail business to understand the dynamics of the retail channel, he created the Retail Opportunity Model which he calls the “Troy Method” after his own company. The retail opportunity model is designed to help small businesses develop both new products and existing products through a comprehensive and systematic retail methodology. The author contends that this methodology offers a solution for many of today’s retail problems. 

The main proposition

We live in a “service-oriented” society where consumers visit stores for a specific purpose – service. The customer is looking for a convenient store, a quick transaction, and a reasonable price on products. If you have successfully positioned your retail shop or kiosk within this service-oriented environment, then you have all of the tools necessary to engage consumers in a buying climate.

How to manage a retail business outlet effectively

This model begins with the premise that a retail outlet can be effectively managed through a defined set of core store activities. These core activities include a selection process, display of merchandise, sales presentation, and the provision of accounts-receivable and order processing services. Once these core activities have been identified, you can define the means by which account information and other data about the customer are communicated to your sales, marketing, and support staff. This communications framework will then allow you to effectively manage your retail channel.

Creating the POA

The storefront of a retail business uses a combination of store-specific hardware and software to deliver a single store-wide application and establish a single point of access (POA). 

The author maintains that a strong understanding of the relationship between storefront hardware and software is critical to understand the effectiveness of the retail storefront. Storefront hardware includes a computer terminal, a printer, a video camera and a scanner. Storefront software utilizes a database management system (DBMS), a sales and inventory control program (SSCAP), and a user credentials manager.

The role of user credentials in retail business

User credentials are also the bedrock of the online retail environment. The author maintains that the design of user credentials requires a fundamental understanding of the relationship between business logic and storefront requirements. A business logic or a user code interacts with the DBMS, the SSCAP, and the vendor secret to provide information about the purchasing intent of the user, as well as the capability to provide default user information to third parties.

The essence of this interaction lies in a commerce runtime, or a collection of business rules that define how shopping carts should respond to the various purchase scenarios.

Commerce runtime and its importance in the process

The concept of a commerce Runtime can be defined as an internal storehouse of rules that determine how a product can be listed, ordered, and ultimately shipped to end users. The authors observe that implementing a commerce runtime can be challenging because it is inherently error prone because it relies on a detailed knowledge of the intricacies of the online retail channel. This implies that designers need to be very careful about how they proceed. This calls for the designers to adopt an evolutionary approach, as some emerging storehouse rulesets are coupled with legacy storefront uses.

Online retail design – an alternative way

The other crucial aspect of the online retail design that the authors identify is the design of an identity provider used by the storefront. An identity provider, as described by Brier and Butler (2021), is a software application that provides storehouse-like functionality. In the case of an e-commerce application hosted on a hosted storefront, the identity provider used can be the SSI (Social Security Number).

Alternatively, it can be the username and password implemented by the developer using OAuth 2.0 protocol. The SSI is not used when a consumer logs on to the online retail store, but when an authorized user logs on to an intranet system that contains a login page, the SSI will be uniquely identified by the client browser as the login identity.


The business logic consists of the business rules that drive the retail process.

This is achieved through the usage of business logic programming language (BPCS). 

The purpose of business logic programming language is to specify rules that will guide a business logic process while performing a particular operation. For e.g., a website user could perform some shopping operations using a certain website category or type of product. Likewise, a web developer could create a payment gateway using his business logic programming language (BPCS) to allow the business owner to accept payments for his/her customers. 

In the case of a mobile application developed using the WWP (wireless protocol) app model, the business logic is coupled with the native platform functionality to convert the user’s touch screen movements into precise movement codes. The WWP app stores all the business logic code that ensures accurate and convenient UIs for end-user interface controls.

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