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

YOU MAY ALSO LIKE /



UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand 

Continue Reading

March 31, 2021 | By RetailME Bureau

Locally owned supermarket Spinneys celebrates 60 years of doing business in the 

Continue Reading

March 9, 2021 | By RetailME Bureau
Almarai, Carrefour, Emirates have the most loyal customers

UAE-based Carrefour will become the first retailer in the region to offer new levels 

Continue Reading

February 22, 2021 | By RetailME Bureau

The Organic Farmers’ Market is back in Bay Avenue for its 12th 

Continue Reading

February 17, 2021 | By RetailME Bureau

UAE-based  Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah, 

Continue Reading

February 15, 2021 | By RetailME Bureau
Jones the grocer

Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones 

Continue Reading

February 1, 2021 | By RetailME Bureau

UAE-based Al Maya Supermarkets is hosting a two-week food festival at select 

Continue Reading

January 17, 2021 | By Lawrence Pinto

Locally-owned supermarket Spinneys has launched its ‘Power of Plants’ initiative in the 

Continue Reading

January 17, 2021 | By RetailME Bureau
Cookit

Carrefour UAE has launched “Cookit Yourself” — a curated recipe box created 

Continue Reading

January 5, 2021 | By RetailME Bureau
Al Islami Plant-Based Burger

UAE-based Al Islami Foods, one of the largest frozen food companies in 

Continue Reading

January 3, 2021 | By RetailME Bureau
Marks & Spencer's plant-based range

Marks & Spencer’s plant-based range now offers over 25 vegan products including meat-free 

Continue Reading

December 23, 2020 | By RetailME Bureau

World’s largest fully integrated online brand in fresh fish and meat e-commerce 

Continue Reading

December 14, 2020 | By RetailME Bureau




Download Images RetailME Magazine