Omnichannel is the way ahead


September 16, 2020 | By RetailME Bureau

Omnichannel is the way ahead, as consumer and retailer behaviour during the COVID-19 pandemic has demonstrated that online and physical sales channels form a highly competitive single retail market, according to GlobalData research.

The research found that shopping habits in the US and Europe shifted dramatically because of disruption caused by the pandemic, driving rapid adoption and growth in buy online, pick up in-store services.

However, the findings reveal that transactions made through online channels (desktop and mobile point of transaction) did not exceed 30% of total retail sales at the peak of lockdown in any country covered by the study – and many of those sales were supported by physical stores, with click-and-collect retail sales soaring. The report also explores how buying behaviour has evolved since lockdowns have ended and reveal that the sales penetration of the online channel is falling as consumers return to stores and make greater use of fast-growing multichannel services.

Read the report

Explaining why omnichannel is the way ahead, Neil Saunders, GlobalData’s lead retail analyst, said, “Despite claims that the growth of online shopping is leading to a ‘retail apocalypse,’ the reality is that many retailers across all sectors are thriving because they are innovating with multichannel to provide a convenient shopping experience for consumers. A very significant proportion of sales that are attributed to the online channel are, in fact, multichannel sales that rely on both stores and online for success. On average, one-third of online non-food purchases – where a customer actually transacts online – are in fact reliant on physical stores for product selection, pick-up or return.”

Saunders said the report also dispels the notion that retail can be neatly divided between online and offline shopping channels, but that consumers shop simultaneously across channels.

“The concept of separate channels has always been somewhat meaningless, but the pandemic is making it even more so. For any given purchase, shoppers are increasingly using a mix of channels and are swapping between them based on their needs. In the US, for example, stores are now supporting a greater proportion of online channel sales than they were at the start of the pandemic – mostly because retailers have quickly introduced things like curbside collection, leading to soaring online growth at big-box retailers,” Saunders added.

Across all countries, a majority of shoppers say that they will make greater use of multichannel services even as things return to normal. Meanwhile, a majority of retail executives are planning to invest more in the multichannel parts of their business, such as curbside collection and fulfilment from stores.

“The idea that there is a battle between online and physical retail is outdated. There is only one retail battlefield and the fight is between all the players in it – and those that have strong multichannel options with both an established store network and online presence now have the advantage,” Saunders concluded.

 

For all the latest retail news from the Middle East, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page.

Comments

comments

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Lulu Group partners with Amazon expanding grocery offerings to online customers in the UAE

Abu Dhabi based grocery retail chain Lulu Group has partnered with Amazon 

Continue Reading

November 24, 2022 | By RetailME Bureau
Food Tech Valley partners with Tradeling to boost UAE’s food ecosystem

UAE-government-led initiative Food Tech Valley – announced in 2021 by His Highness 

Continue Reading

November 17, 2022 | By RetailME Bureau
Lulu Hypermarket to open in The Dubai Mall in 2023

Abu Dhabi-based supermarket chain Lulu Hypermarket is all set to open in 

Continue Reading

November 10, 2022 | By Rupkatha B
Beyond Meat’s Q3 2022 results “disappointing”

Plant-based meat brand Beyond Meat’s financial results for the third quarter of 

Continue Reading

November 10, 2022 | By RetailME Bureau
Barakat unveils new biodegradable packaging

UAE’s fresh produce brand Barakat has launched bio-degradable packaging across its entire 

Continue Reading

October 27, 2022 | By RetailME Bureau
Pure Harvest CEO Sky Kurtz

UAE-based agritech start-up Pure Harvest Smart Farms has signed a Memorandum of 

Continue Reading

October 27, 2022 | By RetailME Bureau
Carrefour signed up as anchor tenant for Midtown Project

Carrefour, owned and operated by Majid Al Futtaim – Retail in the 

Continue Reading

October 27, 2022 | By RetailME Bureau
Grandiose Supermarket announces country-wide expansion plans

Grandiose Supermarket, part of Ghassan Aboud Group, has announced expansion plan in 

Continue Reading

October 26, 2022 | By Rupkatha B
100 years of Valrhona

The Valrhona journey began 100 years ago with a cocoa bean. Since 

Continue Reading

October 24, 2022 | By Justina Eitzinger
On-demand grocery delivery in 15 mins

Deliveroo UAE has announced the expansion of its rapid grocery delivery service 

Continue Reading

October 24, 2022 | By RetailME Bureau
Mariam bint Mohammed Almheiri, Minister of Climate Change and Environment

The Ministry of Climate Change and Environment (MOCCAE) revealed that the UAE 

Continue Reading

October 17, 2022 | By RetailME Bureau

Abu Dhabi-based leading supermarket chain Lulu Group has appointed investment bankers Moelis 

Continue Reading

October 13, 2022 | By RetailME Bureau




f
Download Images RetailME Magazine