I first heard about the flywheel effect during my time at Woolworths, listening to the globally respected retail mind of Greg Foran at a monthly town hall meeting. He described how sustained positive effort in alignment across the business builds a sustainable competitive advantage. That concept made sense at the time. Over the years, through different organisations, roles and challenges, I’ve seen firsthand how powerful the flywheel effect message really was. The flywheel concept, popularised by Jim Collins, is simple but profound: consistent, purposeful actions build energy over time, eventually creating a self-reinforcing cycle of growth. In retail, where change and competition intensity is a constant, momentum is often the hidden engine behind high-performing teams and thriving retailers.
Building the Flywheel
Momentum starts with a clear strategy. Retailers who define where they’re going and why, provide teams a reason and direction to push. Whether it’s expanding fresh food, improving speed to shelf, or elevating the customer experience, the strategy provides focus. Every initiative becomes a deliberate step forward.
Data and insights play a critical role in forming and measuring the results of your strategy. In today’s retail landscape, intuition alone isn’t enough. Smart use of data helps retailers understand what’s working, where friction exists, and how to better serve customers. From refining product mix to optimising labour, insights remove resistance from the flywheel, allowing it to spin faster.
Consistency in delivery and execution is then key. Momentum isn’t built in bursts; it’s earned through rhythm. Daily huddles, weekly reviews, and ongoing feedback loops create a cadence that reinforces progress. When teams see their efforts reflected in results, belief grows and with it the energy.
Keeping the Customer at the Heart
Momentum is most powerful when its customer led. Every improvement, whether operational, digital, or experiential should ultimately serve the shopper. Clean stores, relevant ranges, and fast, friendly service aren’t just good practice; they’re the fuel that keeps customers coming back and the flywheel turning.
When teams are empowered to act on customer feedback and see the impact of their decisions, they become more engaged. That engagement drives better execution, which in turn improves customer satisfaction, a virtuous cycle that builds momentum from the inside out.
The Human Factor
People and culture matters. Leaders who celebrate small wins, communicate progress, and foster ownership create a sense of movement. Momentum becomes contagious. Teams begin to anticipate success rather than chase it. And in a sector where talent is scarce, agility is essential, that mindset can be a game-changer.
Avoiding the Stall
When it comes to momentum the danger lies in getting too comfortable. Retailers need to constantly question the norm pushing against what seems true and always seeking new ways and ideas to adapt. Stopping routinely to look back and letting new perspectives guide their way is what keeps the gears moving smoothly forward.
Final Thought
Within the world of retail, it’s not about pulling just one magical lever to achieve success but rather about weaving multiple elements together into a cohesive and strong strategy. If retailers dive in with a solid plan in mind, tap into the power of data and valuable insights, and remain focused on putting the customer at the centre of all their choices they set in motion a powerful ripple effect that keeps driving their business forward. After getting that wheel going it really turns into something tough to bring to a halt, people thrive and so does the business.
This article was written by Jason Joukhador for the October/November issue of Convenience and Impulse Retailing magazine.
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