Omnichannel is the way ahead


September 16, 2020 | By RetailME Bureau

Digital transformation

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.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Rajiv Warrier, Chief Executive Officer, Choithrams

Since the launch of its first store in the UAE five decades 

Continue Reading

March 20, 2024 | By RetailME Bureau
Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B
Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail

In 1995 regional retail conglomerate Majid Al Futtaim introduced Carrefour to the 

Continue Reading

February 26, 2024 | By RetailME Bureau
Prashant Parameswaran, Managing Director and Chief Executive Officer of Tata Consumer Soulfull

Tata Soulfull, a leading name in the ‘good-for-you’ snacks and breakfast cereals 

Continue Reading

February 22, 2024 | By Rupkatha B
Jean-Luc Graziato, Chief Commercial Officer of Majid Al Futtaim – Retail and Alia Al Harmoodi, Acting CEO of the Environment, Health and Safety Agency

Majid Al Futtaim – Retail, which holds the exclusive franchise to operate 

Continue Reading

February 20, 2024 | By RetailME Bureau
Krishna Dhanak, Managing Director, Alpen Capital

In an exclusive interview Krishna Dhanak, Managing Director, Alpen Capital shared insights 

Continue Reading

February 19, 2024 | By Rupkatha B
Majed M. Al-Tahan, Co-founder & Managing Director, Danube Online

As digital transformation across the retail industry continues to accelerate, the expectations 

Continue Reading

December 19, 2023 | By RetailME Bureau
Frederic Levy-Perrault, CEO, Al Raya Supermarket

Saudi Arabia-based grocery retail chain Al Raya Supermarket serves over 100,000 customers 

Continue Reading

December 15, 2023 | By RetailME Bureau
Ahmad AR. BinDawood, Chief Executive Officer, BinDawood Holding

BinDawood Holding has a rich Saudi heritage, spanning over 50 years, 38 

Continue Reading

December 13, 2023 | By RetailME Bureau
Majid Al Futtaim Retail commits to Collaborative Impact Goals at COP28

Majid Al Futtaim Retail, which owns the exclusive rights to operate Carrefour 

Continue Reading

December 8, 2023 | By Rupkatha B
BinDawood Holding Company earns Honorary Shield for Compliance Excellence

BinDawood Holding Company has earned an Honorary Shield, a distinguished recognition by 

Continue Reading

December 6, 2023 | By RetailME Bureau
First Movers Coalition for Food to create up to $20-bn value chain for sustainable farming

The World Economic Forum, with support from the Government of the United 

Continue Reading

December 5, 2023 | By RetailME Bureau




Download Images RetailME Magazine