Editor's Note: Announcing the Release of Total Retail’s 2nd Annual Top 100 Omnichannel Retailers
Total Retail is excited to present to you its second annual Top 100 Omnichannel Retailers. The report, produced in conjunction with Radial, a leading omnichannel commerce technology and operations provider, features a ranking of 100 publicly traded retailers based on their omnichannel retail programs offered as well as the execution of said programs.
Why focus on omnichannel retail? Today's consumers are channel blind, seeking out great retail experiences regardless of the touchpoint. Furthermore, retailers that persist with fragmented omnichannel strategies that ultimately don't give consumers the single, perfect experiences they crave will be left in the dust. This report is designed to help retailers see how they compare against their competitors when it comes to the omnichannel services they offer, as well as help them create the successful omnichannel strategies they need to survive.
Like our first annual ranking of the top 100 omnichannel retailers, this year's report identifies the brands leading the way in omnichannel retailing. Likewise, we’ve exposed the brands that have a lot of work to do in giving their customers the omnichannel experiences they've come to expect and demand.
The retailers were judged on the following seven omnichannel criteria: does it offer buy online, pick up in-store (BOPIS); does it offer the ability to search for in-store products on its website, including access to stock availability; does it offer a shared cart across channels (e.g., mobile to desktop, and vice versa); can loyalty points be earned and redeemed across channels; can products be returned across channels (e.g., return online purchases in-store); does it offer five or more channels for customers to engage customer service staff; and is product pricing consistent across channels. The research was compiled in the first quarter of 2018.
Omnichannel Strategy Leaders
Which retailers were the omnichannel leaders this year? Which brands offer the greatest omnichannel customer experiences? For the second year in a row, DSW and UGG tied for the top spot (along with LIDS). These companies have shown a willingness to invest in technologies that enable the types of seamless omnichannel shopping experiences that consumers demand. On the flip side, for the second straight year, off-price retail chains can be found at the bottom of the rankings. Ross Stores, Marshalls and T.J. Maxx (the latter two both part of TJX Cos.) can be found in the bottom half of the rankings, in large part due to their lack of e-commerce websites.
Additional trends to emerge from this year’s research include the following:
- The proliferation of buy online, pick up in-store programs. In 2017, 63 percent of the retailers studied didn’t have a BOPIS program in place. This year, that number was cut to 48 percent.
- Retailers are focused on increasing customer loyalty. Nearly three-quarters (74 percent) of the retailers enable customers to earn and redeem loyalty points across channels (22 percent did have exceptions within their loyalty programs) vs. just 42 that did so in 2017.
- Product returns are a pain point for retailers. The number of retailers that offer cross-channel returns actually decreased year-over-year (85 percent in 2017 vs. 78 percent in 2018).
Use the 2018 Top 100 Omnichannel Retailers report as a resource to benchmark your business against its competition. See the areas in which they’re strong and, conversely, where they’re deficient, and then create a plan to take advantage of your potential opportunities. Your company’s financial health may very well depend on it.
Related story: Total Retail's 2017 Top 100 Omnichannel Retailers