Retailers across Australia and New Zealand are increasingly questioning whether the sprawling technology systems built during the ecommerce boom are now slowing their businesses down rather than helping them grow.

Over the past decade, many large retailers connected online stores, point-of-sale systems, inventory platforms and customer databases through multiple layers of software integrations as digital shopping expanded rapidly. While the approach helped businesses scale quickly, it also created growing operational complexity behind the scenes.

Industry leaders now say the discussion has shifted beyond IT departments and into boardrooms, with executives focusing more heavily on the financial and operational impact of maintaining fragmented commerce systems during a period of tighter margins and highly competitive retail conditions.

Shopify APAC and Japan managing director Shaun Broughton said many retail systems were built during an earlier stage of rapid digital growth when businesses prioritised speed and expansion over long-term simplicity.

As retailers added new brands, sales channels and fulfilment options, many ended up relying on disconnected platforms that required constant coordination and maintenance to function properly.

Broughton said retailers are now facing what many describe as a “fragmentation tax”, where duplicated software, manual workarounds and ongoing maintenance consume resources that could otherwise support growth and customer experience improvements.

The issue is becoming more visible as retailers face rising pressure around delivery expectations, inventory accuracy and faster promotional cycles. Businesses are increasingly expected to update pricing, launch campaigns and manage stock levels across multiple channels almost instantly.

According to Shopify, more retailers are now shifting towards unified commerce systems where customer, inventory and operational data sit within a single platform rather than being spread across multiple connected services.

Melbourne-based retail group Brand Collective recently consolidated much of its ecommerce infrastructure after inheriting a mix of platforms through acquisitions and expansion. The company operates more than 300 stores and dozens of online storefronts across brands including Reebok, Superdry, Volley and Hush Puppies.

Brand Collective group general manager of digital and ecommerce Aaron Gard said maintaining separate systems across different brands created duplicated work and slowed the company’s ability to move quickly.

The business later streamlined much of its technology structure into a more unified setup. Shopify claims the move contributed to a 60 per cent reduction in maintenance overhead and a 50 per cent improvement in new brand launch timelines.

Electrical retailer The Good Guys faced similar challenges with older ecommerce infrastructure that became increasingly difficult to maintain as online sales grew. The retailer modernised its architecture using Shopify’s headless commerce framework, contributing to faster deployment cycles and improved site performance.

Research cited by Shopify from EY found Shopify POS delivered an average 22 per cent lower total cost of ownership alongside an 8.9 per cent increase in sales performance.

Retail analysts say the broader shift reflects changing priorities within the industry. Rather than focusing purely on adding more features or systems, retailers are increasingly assessing how technology affects speed, operational efficiency and customer experience.

The pressure is especially strong in Australia and New Zealand, where cost-of-living pressures, frequent discounting and rising delivery expectations leave little room for delays or inconsistent service.

For many retailers, the challenge is no longer whether integrated systems can function, but how much time, money and staffing is required to keep increasingly complicated technology ecosystems running efficiently.