News

Report says most retailers are lagging on omnichannel

Overall, the majority of retailers are struggling to implement technologies now regularly expected by consumers, which prevents them from exploring future retail opportunities.

October 22, 2014

E-commerce provider Mozu has announced findings from its benchmark report gauging retailer readiness in implementing new retail technologies. Overall, the majority of retailers surveyed are struggling to implement technologies now regularly expected by consumers, which prevents them from exploring future retail opportunities.

Highlights from the report include:

• 69 percent of retailers indicate they are not omnichannel integrated, with 29 percent stating they have not considered omnichannel capabilities.
• Consumers indicate that bridging the online and in-store experience matter to them most, ranking their most desired online shopping features as: 1) Buy online, pick up in-store same day; 2) Buy online, exchange in-store; 3) Same-day delivery.
• Of those retailers who do plan to invest in retail technology, 49 percent plan to invest in mobile payments, 29 percent look to offer buy online, pick up in-store capabilities, and 28 percent are working to create a dedicated mobile application.
• 85 percent of consumers indicate that they use their mobile device while shopping in a retail store.

According to the report, retailers and consumers generally agree that implementing basic omnichannel capabilities is a top priority, including the abilities to purchase online and pick up or exchange in-store. In terms of shopping experiences within a retail store, consumers expressed they would like to see more mobile capabilities, such as receiving personalized discounts based on their location.

When it comes to implementing new retail technologies, retailers say their top barriers include: 1) Insufficient financial resources; 2) Difficulty implementing back-end technology; and 3) Lack of education and training of employees. These barriers were consistent among organizations of all sizes — from those generating high revenues ($300M-$500M+) to those with lower revenues (less than $1M-$299M).

The study also reports a widening technology gap among retailers who consider themselves to be omnichannel integrated and those who do not. Forty percent of respondents, most of whom are not omnichannel integrated, indicate they have no intention of implementing new consumer-facing retail technologies in the next 12 months.