Stores the new darlings of omnichannel retailing
Stores are once again the darlings of retail — even e-commerce pure plays are scrambling to establish brick-and-mortar locations while established brands are busy exploring new ways to leverage their existing physical footprint. Many predicted that the store would survive — and indeed thrive — but few realized the full degree to which stores would become a coveted link within today’s customer-driven “commerce anywhere” shopping experience.
But to maintain their status in this fast-changing retail environment, stores will need to do more than provide the instant gratification of connecting consumers with products. They will need to enhance their roles as places for inspiration, education, social connection, and access to an expanded range of products and services. Technology that maximizes business agility and speeds time to market with new innovations, such as the expanding array of cloud services and software as a service (SaaS) options for retailers, will be instrumental as stores redefine their ability to be relevant, responsive, and customer-centric parts of the shopping experience.
Recent research conducted by Oracle confirms that consumers around the world want stores to be part of their shopping experiences. Results from “Retail Without Limits,” a survey of 5,000 consumers in 10 countries (including the United States and the United Kingdom) conducted earlier this year, reveals that 44% prefer buying goods in-store and taking them home. Another 8% like to buy goods in the store and have them delivered home, and an impressive 40% of respondents say the presence of local and convenient stores can influence their loyalty to a retailer.
Perhaps even more telling is the fact that several previously digital-only companies have seen the need to establish a footprint in the physical world. Warby Parker, Bonobos and Birchbox have all made the move from “clicks” to “bricks,” and even online powerhouse Amazon opened pop-up shops during the 2014 holiday season. It reportedly plans to open a permanent brick-and-mortar location in Manhattan.
But while stores do fulfill critical customer expectations for a “commerce anywhere” experience, there is an urgent need to change enterprise, inventory and POS operations so that stores become smoothly integrated parts of customers’ paths to purchase. For most retailers, a multi-faceted transformation is required to bring stores up to new standards for true omni-channel retailing.
One of the biggest challenges is consumers’ demand for transparency. The Retail Without Limits survey provides some detail:
70% of respondents want visibility to stock so that they can make their purchases anytime, anywhere.
59% seek access to detailed product information through both digital and store channels.
51% want the ability to track current orders and review order history.
42% value a connected shopping experience that ties together channels with fulfillment, including returns and service.
Customers also want stores to match the way they shop now. The vast majority — 83% of survey respondents — think it’s important for retailers to adopt new technologies to improve the shopping experience. And as retailers take advantage of the flexibility afforded by cloud-based solutions, they will find it easier to extend and support these technologies to stores located throughout their geographical footprint.
Some strong possibilities include (but are not limited to):
Making data more accessible in stores
Whether it’s through fixed devices (e.g. kiosks, interactive signage), consumer mobile apps or equipping associates with tablets, retailers need to bring real-time data into the equation. Such technologies create opportunities for cross-selling and upselling, saving the sale when items aren’t in stock (50% of respondents value in-store apps that enable product search), and improved customer engagement (25% of respondents like solutions that allow associates to personalize their experiences).
Allowing the store to double as a distribution center
Both ship-from-store and click-and-collect programs allow retailers to maximize their investments in physical storeswhile simultaneously boosting customer service with faster delivery and convenient pickup and return options.
Maximizing your inventory investment
Retailers that can make all of their inventory (in every DC, on every store shelf) available at all touch points and at all times, get a double bonus — additional sales, because more customers can get what they want when they want it. They also get a better return on their inventory investment, which is typically the largest chunk of a retailer’s budget.
These are just a few of the options available as retailers change the role that stores play in a complete “commerce anywhere” customer experience, and fast-advancing technologies mean more are on the way. All require investment and a willingness to change not just systems and applications, but also processes and perceptions. The good news is that consumers want stores to succeed as much as retailers do — and there are a lot of creative technology solutions available to make that success a reality.
Jill Puleri is senior VP and general manager of Oracle Retail.