New omnichannel benchmark study reveals significant opportunity for AUS/NZ retail transformation in 2021

Over December 2020 to January 2021, Retail Express conducted an omnichannel benchmarking study of Australian and New Zealand retailers across multiple sectors comprising a total of 22,000 stores. The purpose of the study was to understand the degree of adoption of key omnichannel best practices that will be critical for retailers planning to position their business for future growth.

The inaugural Retail Express Omnichannel Benchmark Study revealed encouraging evidence of omnichannel best practice from some retailers in certain sectors.

However, the overall finding was that there is a significant opportunity for improvement and need for large-scale business transformation in 2021 for the vast majority of retailers.

The enclosed table provides a summary of the key findings.

›    For all key practices, less than half of the retailers studied have implemented them.

›    For most of the best practices, less than a quarter of retailers had adopted them.

The study also looked at Wait Time for Click & Collect (32% same day, 24% next day, 34% 2-4 days and 5% more than 5 days) and Speed of Home Delivery (0.3% within 3 hours, 1% same day, 1% next day, 46% 2-4 days and 25% more than 5 days).

“At the start of 2020, the concept of omnichannel retailing was nothing new – consumer behaviour and buying trends were changing and most retailers aspired to provide a seamless integrated online and in-store experience – even if their aspirations didn’t always match their current capabilities” said Aaron Blackman, Founder and CEO, Retail Express.

“In the space of less than a year COVID-19 has rapidly created a demand on retailers to deliver online-centric shopping experiences and introduce fulfilment processes that are no longer a ‘nice to have’ but are central to meeting customer expectations for safety and convenience”

Mr Blackman added “The quality of a retailer’s eCommerce store, Click & Collect services and home delivery speed have become key factors in who consumers decide to shop with. COVID-19 has raised the bar on the omni-channel experience expectations of consumers for good. It has divided retailers into those who are able to step up and leverage this as an opportunity to grow market share and those who have struggled to adapt”

“Just offering online shopping with Click & Collect will no longer be a competitive advantage, same day Click & Collect, and the speed of home delivery will be the benchmark”

“One thing we have learned through 2020 is that disruption is the new normal – in 2021, digital transformation will be the number one priority as retailers look for ways to create agile businesses built to adapt to future disruptions.”

“Omnichannel will naturally be high on the agenda, said Mr Blackman “with investment in the right technology stack and business processes to enable these capabilities. By utilising agile, integrated omni-channel software systems, retailers can switch different practices on and off based on what is happening out in the market”.

“Rather than backing off on IT spend in 2021, retailers may need to double down and keep digital transformation at the top of the investment agenda – now is the time for retailers to plan and design a robust and flexible operating model including a review of current systems and technology looking for all possible efficiency gains.”

“Those retailers that have embraced the latest omni-channel capabilities along with lean, agile operating models should be feeling very optimistic for 2021.”

-Ends-

About Retail Express

Retail Express is the market leader in cloud retail software. Founded by CEO Aaron Blackman who started his journey as a multi-store retailer and knows what it takes to run a successful retail business. We have been in the industry for over 15 years and were the first company in the world to pioneer cloud retail software. The Retail Express mission is to help retailers profitably expand their operations and deliver unique omni-channel shopping experiences. Key areas of functionality include Point of Sale, integrated eCommerce, Inventory Management, Fulfilment, Loyalty, Marketing and Business Intelligence.

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Wendy Robertson
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Retail Express
E: wendy.r@retailexpress.com.au 
M: 0401 712 615