Originally published on LinkedIn in June 2025, shortly after OKAY's collapse.
OKAY Is Gone. Nobody Is "Too Big to Fail". Not Even You!
The story of OKAY's collapse has received a lot of media coverage. I've spoken with a number of people and heard various opinions. The negative view of the company's leadership and its inability to adapt to change often prevails. It looks as though they brought their downfall on themselves, simply by not running the business properly.
There may be something to that. But if we settle for only that explanation, we as an e-commerce community will miss the chance to truly learn from their story.
Did you notice that a company with an annual turnover of over 5 billion CZK is gone? Can't you see the enormous success they achieved over two decades before COVID? If it could happen to such a strong player, what does that mean for the rest of us — smaller but successful e-commerce businesses?
That's why I'm writing about this today. To stop and reflect. What did they do well? What did they neglect? And what can we take away from it? I'm not the only or the best person to evaluate the full story — former employees, especially those from leadership, certainly have deeper insight.
But I worked with OKAY on a long-term basis, mainly during their transition from a custom solution to Shopify Plus. That gave me a chance to get to know their culture, their people, and their motivation for change. And that at least gives me a framework for reflection. OKAY's vision and goals as presented on the office walls.
What did they do well?
OKAY strategically built on the conviction that the lowest price wins. I don't have to agree with that, but I respect how consistently they communicated this vision and how strong a purchasing department they built. They could negotiate favorable terms, and that was reflected in their prices. Employees were trained in commercial thinking. And that's not common.
- Focus on the lowest price
I don't fully identify with this, but it was amazing for me to see how clearly this vision was communicated across the entire company. The purchasing department played a key role in this, negotiating the best possible commercial terms with suppliers in the market. OKAY was well known for its negotiating practices. It was something they intensively taught their employees, and wherever they could, they always got the best possible deal. All of this so they could offer their customers the lowest prices in the market.
- A genuine omnichannel strategy
Online and offline truly worked together for them. Sales staff were incentivized to handle orders that customers started online, or to reach out to people who had abandoned items in their cart. Few companies had such an advanced system in this regard.
- Courage to innovate
Sometimes that meant taking risks. When they acquired Jena Nábytek, they tried to combine electronics and furniture under one roof. That essentially meant building two companies internally... complex, but ambitious.
- Focus on performance
They didn't play the image game. They didn't chase PR or office design. They focused on performance. People had to meet demanding targets with minimal costs. This tough school produced extraordinarily capable people. Anyone today who employs former OKAY staff will confirm that.
As you can see, there's a lot to admire about OKAY. And that should serve as a cautionary tale for all e-commerce or retail businesses.
Where did it go wrong?
Good question. And the interesting answer is that there is no single factor that killed OKAY's success. On the contrary, several things had to come together for it to end the way it did. This certainly won't be a complete list of all the problems. Every time I talk to someone who worked there, I hear something new I could add to this text...
- Large investments at the wrong time
Before and during COVID, they invested enormous resources in logistics and warehouses — with the goal of preparing for further growth. A bold plan, but insufficiently aligned with other priorities. The investment quickly became a burden.
- Unchecked ego at critical moments
It's no secret that ego always plays a big role in life and, of course, in business. It can often open paths to productivity and success. But in this case, it also showed itself in the worst possible light. There were problems in the company that went unaddressed for a long time. For example, loss-making branches. The market changes quickly, and relying on past glory in retail is a risk. Agility was lacking.
- Missed opportunities
When we started working together (2020), there were many open doors ahead of them: expansion, branding, retention, new technologies... Many projects, however, fell apart due to internal disagreements, politics, or unclear governance.
- Poor communication across the company
Ambition isn't enough. It has to be shared across the company. If the customer service line doesn't "live" the brand's vision, and the stores aren't working with current inventory, the entire effort collapses. Fragmentation between departments undermined the whole system.
What can we take away from this?
OKAY wasn't foolish. And it certainly wasn't without talent. They had vision, courage, and capability. It just wasn't enough that it worked "somewhere." It has to work everywhere and together.
I'm genuinely sorry about how it ended. OKAY was a major player with whom we managed to build a unique solution on Shopify Plus. And even though it feels bitter today, I'm encouraged by the feedback from former employees:
If they hadn't been using Shopify, their collapse would have come even sooner. The e-commerce channel proved to be a truly profitable and productive part of the entire business for them.
If the innovation and results we achieved in e-commerce had been replicated across the whole company, the business would likely still be operating today.
These are just comforting facts that don't change the harsh reality. But they bring some satisfaction to someone who put a lot into that project to convince the market that Shopify isn't just for small players.
agency in CZ and SK
