NewStore Research Finds Retail Reacting Too Slowly to Modern Consumers
The Omnichannel Leadership Report reveals a lack of digitally connected retail experiences, but also recognizes omnichannel excellence from brands including Diesel, Nike, and Aritzia
November 08, 2018
BOSTON, MA – November 8, 2018 – NewStore, Inc., the first to provide Omnichannel-as-a Service, today released its annual research report – The Omnichannel Leadership Report – that benchmarks 150 apparel, luxury, and lifestyle brands. NewStore’s team of researchers analyzed each brand in-store and online, engaging and interacting with in-store technologies and systems, store associates and managers, as well as a brand’s mobile and web presence.
“The top brands in our report are the ones that understand the consumer expects an omnichannel experience – one that is always-on, seamless, consistent, and personalized across all touch points,” said Stephan Schambach, Founder and CEO, NewStore. “Our research finds that many brands are actively working toward this vision, but there’s plenty of room for improvement.”
Each brand in the report received a score from 0 – 100 (100 being the optimal score) in three categories (Search & Discover, Personalization & Engagement, and Path to Purchase & Fulfillment) as well as an overall score. All of the data points were weighted based on their correlation to the customer journey, as well as impact on revenue. The top five brands on the overall leaderboard with their respective overall scores, cited for cohesive customer experience, inventory availability, and store technology are:
- Diesel: 83
- Nike: 80
- Coach: 77
- Aritzia: 74.3
- Kate Spade: 74
Overall industry score for all brands was 43. Other notable findings in the NewStore Omnichannel Leadership Report:
- Search & Discover: Less than half (45%) of store associates have access to their store’s inventory levels, and even fewer (39%) have access to other stores’ inventory.
- Top performing brands in this category include Tory Burch, Vineyard Vines, Abercrombie and Fitch, American Eagle, and Gap.
- Personalization & Engagement: 60% of brands are providing their store associates with mobile devices in-store, which is up 10% from 2017.
- Top performing brands in this category include Aritzia, BVLGARI, Diesel, Thom Brown, and Tiffany & Co.
- Path to Purchase & Fulfillment: Only 29% of brands can process returns for online orders and supply a refund in-store, while another 43% have instituted a “faux” return process, accepting items in-store and later shipping back to the distribution center to be processed and refunded to the customer days later.
- Top performing brands in this category include Coach, Anthropologie, Diesel, Ted Baker, and J Crew.
“Retailers may have gotten tired of the omnichannel buzzword, but they are still investing a great deal of energy trying to make it happen,” said Phil Granof, CMO, NewStore. “The blueprint is out there: create a store experience like Apple with the shopping convenience of Amazon. It seems daunting, but brands that continue to find organizational or technological excuses against omnichannel capabilities will disappear and the ones that embrace it will thrive.”
About the Omnichannel Leadership Report
The Omnichannel Leadership Report chronicles the results of 150 apparel, lifestyle, and luxury retail brands evaluating their omnichannel acuity, capabilities, maturation, and readiness. As secret shoppers, our team of researchers analyzed each brand in-store and online, engaging and interacting with in-store technologies and systems, store associates and managers, as well as brand’s mobile apps and web presence. Data were collected on each brand across three key areas of the modern customer journey; Search & Discover, Personalization & Engagement, Path to Purchase & Fulfillment. Each brand received a score from 0 – 100 (100 being the optimal score) in each category, as well as an overall score. All of the data points were weighted based on their correlation to the customer journey, as well as impact on revenue.
NewStore transforms brick and mortar shopping into app-powered, digitally connected retail experiences. Purpose built for the most demanding consumers, NewStore is the first to provide Omnichannel-as-a Service, integrating a cloud-based order management system and Mobile POS. With intuitive apps on the front-end for store employees and pre-built ecommerce connectors, retailers can easily offer Endless Aisle, Mobile Checkout, Omni Fulfillment, and Clienteling. NewStore was founded by Stephan Schambach, who revolutionized ecommerce by putting it in the cloud with Demandware (now Salesforce Commerce Cloud). The company is located in Boston, New York, and Berlin. Learn more at www.newstore.com.
Director of Corporate Communications, NewStore
Founder, Chatterboss Communications