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The Post-Holiday Blitz Shines Light on Omni-channel Advantage

retail-omni-channel-advantageBy Leigh Buehler-Rappold
Faculty Member, Retail Management at American Public University

The 2014 holiday shopping season has come and gone and now retailers are assessing their 2015 strategy. With a strong season, holiday retail sales reached their highest level since 2011. Online shopping grew significantly by almost 7% to $102 billion in sales. Going into 2015, retailers are investing in new omni-channel technology and programs to offer a more complete and interactive shopping experience. Omni-channels include brick- and- mortar stores, computer and smartphone Internet shopping, as well as traditional print mail and other sales options. For some retailers, like Bed Bath & Beyond, it is almost impossible to separate online from traditional shoppers. Today’s customers want Internet of Everything (IoE) enabled retail experiences. They are looking for convenience and efficiency when shopping, along with greater savings and engagement.

Bed Bath & Beyond is one retailer offering these omni-channel options and it paid off in their holiday sales. CEO Steven Temares explains that some customers go to the store to create a registry, then the gift is purchased from the website by another customer. “Or a shopper may research a particular item on our Web sites, and read various customer reviews, before visiting a store to make a purchase. This same customer may choose to execute the sale via a mobile device and choose either in-store pickup, or home delivery, which could then be fulfilled from a distribution facility, from a store, or directly from a vendor. As we have consistently said, we believe an integrated shopping experience must exist among all channels to provide a seamless and efficient customer experience.”

Grocery stores are also taking to the omni-channel action. Grid Dynamics said 3.3% of the current U.S. grocery shopping is done online and is expected to increase to 20% by 2018. Online grocery shopping was very evident in Whole Foods’ holiday strategy this past season. Shoppers were able to call in orders or order online their entire holiday menu. The stores offered ready-to-serve side dishes, like cranberry sauce and mashed potatoes, which were delivered in easy, oven-ready cookware. I am a personal fan of online grocery shopping! With two crazy kids and a full-time job, there is little time left for grocery shopping. The ability to select what I want from the convenience of my own home is a blessing. And they deliver in two hours! Hooray!

What does this all mean for brick- and- mortar stores? It means the opportunity to create a more user-friendly and convenient shopping experience. Allowing customers to source products directly on their smart phones or computers, to select delivery or in-store pickup, and to determine if products are in-stock, along with efficient checkout processes, aids in the overall drive for exceptional customer service and creating long-term loyalty. Retailers no longer need to separate their brick- and- mortar from their online stores. Using companies like Bed, Bath & Beyond as an example, retailers can blend their omni-channel operations and create a more interactive shopping experience.

Sources:

Troy, M. (2015). Grocers get in on omnichannel action. RetailingToday.com.

Troy, M. (2015) Bed Bath & Beyond makes its digital future. RetailingToday.com.

Grannis, K. (2015). Retail holiday sales increase 4 percent. NRF.com.

About the Author

Teresa “Leigh” Buehler-Rappold holds a B.A in History from Texas A&M University, an MBA from University of Phoenix, and is currently pursuing her Ph.D. in Business. She has over 12 years of retail management and customer service experience in several different departments and retail arenas and holds the National Retail Foundation(NRF) Professional Certification in Customer Service. She currently lives and works in Austin, TX with her husband and two children.

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