The annual ‘State of Retail Online’ study, released recently by National Retail Federation (NRF) and Forrester, has revealed that offline and online retailing are increasingly intertwined. It has been found that customers shop across touchpoints and the industry is intended to serve its customers better at both the platforms, be it digital or physical.
32 per cent of those surveyed were “pureplay” online retailers while 57 per cent were multichannel retailers, including traditional brick-and-mortar retailers that also sell online. NRF Vice President for Research Development and Industry Analysis Mark Mathews believes that ‘retail is just retail whether the sale is done physically or digitally’.
Those selling offline have been selling on online platform for some time and e-commerce retailers are also exploring opportunities on online sale as they feel it is the way to success,” added Mathews.
The survey also revealed that 43 per cent of offline retailers anticipate a net boost in active physical stores by year-end and only 16 per cent expect a reduction in brick and mortar store business. While 61 per cent of retailers plan to spend more on employee training in order to support their store associates providing better services to customers.
It was also found that the location of the store is important to retailers as faster delivery of online orders is the top priority for them. Around 21 per cent of those who took part in the survey feel omnichannel services are also on priority for them.
The current retail industry trend shows that customers have now started opting for ‘click and collect’ option while placing an order online and retailers too shipped orders received online from a nearby outlet.
The frequent use of technology at offline stores also let consumers get what they wish for or make the sale even if the product is not available at that time.
Furthermore, Forrester Vice President and Principal Analyst Sucharita Kodali stated that physical retail store is not doomed as retailers plan to start stores as compared to shut them this year.
Online business continues to contribute to overall retail. 70 per cent of retailers noted that digital conversion rate – people who browse an item on the internet and actually make a purchase online – surged last year.
