TECHNOLOGY

Survey: Retailers are missing out on a big opportunity

BY Marianne Wilson

For all the buzz about buy-online-pickup-in-store, not that many retailers are actually deploying the service.

Only 29.1% of U.S. retailers and 23.5% of Canadian retailers offer click &amp collect, according to a report by OrderDynamics, which notes that both countries are still in the very early phase of click and collect deployments. Of the more than 1,000 global retailers surveyed, 37% overall offer shoppers the option to buy online and pickup in store. The biggest adoption rate is in the U.K., where 67% of retailers offer the service.

Surprisingly, a large number of retailers with click and collect capabilities do not advertise this offering to customers, the study found. The U.S. was worst at advertising in-store pickup offerings, with only 38.5% of retailers with BOPIS alerting customers about the offering on their first webpage.

The study notes the importance of offering in-store pickups given that, in 58% of cases, it results in additional sales and is a way to keep shoppers coming back. It also recommends that retailers consider more than one pickup option for click and collect. Of over one thousand retailers in this study, Walmart stands as one of very few to offer four pickup options (in-store, pickup lockers, curb-side pickup, and postal outlet collection).

The Global Dynamics Omni-1000 report reveals the global and regional maturity, or lack thereof of a wide variety of omnichannel retail features. In other findings from the report:

  • More retailers offer free shipping in North America (with a minimum order_ than the other regions surveyed. Seventy-five percent of Canadian retailers offer the service followed by 67% of U.S. retailers.
  • Among the countries in the study, the U.S. and Canada show the lowest average minimum order for free shipping. The minimum basket for free shipping in the U.S. is $55.65, and $56.66 in Canada.
  • Retail chains with more than 250 stores are twice as likely as chains made up of 10-50 stores to offer click and collect services.
  • An overwhelming majority (90%) of retailers have standard e-commerce capabilities, such as the ability for shoppers to create a virtual shopping basket and purchase goods online.
  • Sixty-eight percent provide basic inventory visibility to online consumers.
  • Fifty-nine percent of retailers allow shoppers to buy online and return in-store.

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M.Vecht says:
Oct-05-2017 10:21 am

Interesting article, but what is the source of this survey? When was it done, by whom, how many respondents, etc.?

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TECHNOLOGY

Study: Shoppers want technology that transforms — not replaces — the store experience

BY Deena M. Amato-McCoy

For many customers, the ideal digital “store of the future” will streamline payments and make it easier to pick up purchases.

This was according to the “Consumer View,” a study from the National Retail Federation that tracks consumer awareness and adoption rates across a variety of retail technologies.

For example, shoppers are most interested in buy online, pickup in-store (68%) services, in-app store navigation (66%), and mobile payment (65%). Yet, many technologies still fall short of consumers’ expectations, suggesting successful implementation still has a ways to go—even for more mature technologies, the study revealed.

Specifically, more than four in 10 consumers (44%) said their experience with in-store digital displays (44%), tablet-/mobile-empowered associates (43%) or messaging apps (43%) had no impact on their experience. One in 10 said it actually made their experience worse (10%, 8%, 9%, respectively).

Despite wanting more practical solutions, customers are keeping a keen eye on emerging innovations. The two technologies that currently top shoppers’ “must try” lists are 3D printing and drone delivery.

Customers also continue to try new solutions, even if they are not yet mission-critical shopping tools. These include visual search (27%), voice search (21%), augmented reality (20%), virtual reality (18%), and smart dressing rooms (13%).

“While &lsquostore of the future’ technologies dominate the retail conversation, many still remain at the periphery of consumer awareness and usage,” the study said. “Today’s shoppers are much more concerned with the innovations impacting the most fundamental elements of retail: How do I pay for my items and how do I get my purchases?”

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Study: Walmart shoppers checking out Whole Foods Market

BY Deena M. Amato-McCoy

As Whole Foods Market continues to slash prices at its stores, the chain is attracting competitors’ shoppers — including those from Walmart.

This was according to “Competitive Impact of Lower Prices at Whole Foods,” a report from data intelligence firm Thasos Group.

Immediately following Amazon’s acquisition of Whole Foods in August, the natural foods grocer has significantly dropped prices on merchandise storewide. This effort has increased foot traffic by 17% year-over-year during the week of the price reductions, which began on Aug. 28.

Walmart’s regular customers accounted for the largest percentage (24%) of Whole Foods’ new customers the week of Aug. 28. Kroger (16%), Costco (15%) and Target (11%) comprised the next largest numbers of new customers.

When it comes to customer defections, Trader Joe’s saw the highest rate, with an average loss of nearly 10% daily customers. This was followed by Sprouts (8%) and Target (3%), the study revealed.

Whole Foods’ new customers overwhelmingly belonged to the same upper income demographic as the company’s traditional customer base. Furthermore, defecting customers came from the wealthiest segment of each competing store’s customer base the week of the price cuts.

Since the price cuts were first announced, foot traffic has settled in at lower, but still elevated levels. The price reductions were too insufficient to attract new kinds of customers, as new customer demographics (including income levels and distance driven to a given store) largely matched those of existing customers, the study said.

“Knowing which stores new customers have defected from, what income levels they represent, how far they traveled to get to Whole Foods, and ultimately, whether they will continue to shop there after trying it out, are invaluable pieces of information for both investors and the stores themselves,” said Greg Skibiski, Thasos Group CEO and founder.

“We all know that Amazon’s acquisition of Whole Foods has the potential to be a game-changer in the grocery space, and in the &lsquobrick-and-mortar versus online’ battle more broadly,” he added. “It will be extremely interesting to watch the winners and losers emerge from the data over the coming months.”

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