Retail Recalibration Key to Success in Hybrid Customer Era
- 11 October 2022
Today at its 2022 European Exchange customer conference, Manhattan Associates Inc. (NASDAQ: MANH) announced the findings of its latest international research, highlighting the need for retailers to keep up with the pace of evolving consumer expectations. It also revealed a retail landscape where the lines between physical and digital commerce are becoming increasingly opaque and complicated.
The global retail industry has grown accustomed to disruption. Over the past decade, it has witnessed seismic structural shifts as the sector transformed for the digital era and the pandemic upended shopping habits further, thrusting billions of consumers into a more digital world.
We are witnessing a period of evolution and recalibration, as it becomes increasingly difficult to distinguish between physical and digital retail.
“Shopping habits have changed forever,” commented Henri Seroux, SVP EMEA at Manhattan Associates. “There can be no return to the status quo, with 83% of retailers now claiming they operate a level of interconnection between their online and in-store functions.”
“As the retail industry recalibrates for this next normal, the ability to navigate disruption, while enhancing the physical and digital customer experience will become increasingly important; as will the technologies that allow retailers to fulfil in-store and online orders in an agile, sustainable and profitable fashion,” Seroux continued.
A Single View of Inventory
When it comes to fulfilment, the ‘one size fits all’ approach no longer works and retailers are reacting to this.
Natalie Berg, retail analyst, author and founder of NBK Retail added. “While the vast majority of surveyed retailers stated that they have a level of interconnection between their online and in-store functions (83%), only around half are offering buy in-store and return online (50%), or buy online and return in- store (46%). And, only 6% of retailers believed that they had an accurate overview of their inventory across their entire business (in-store and online) 100% of the time.
“Shoppers today expect to shop on their own terms with more than a third (34%) considering click & collect to be the most important delivery method, followed by contactless/curbside pickup at 19%. This finding highlights the importance of offering consumers choice when it comes to fulfilment options and the need for a retailers to possess a single view of inventory, as keeping that all important customer promise just got a whole lot more complicated,” Berg commented.
Modern Stores Mirror the Modern Consumer
Almost a quarter of consumers (24%) now expect shop assistants to be able to check availability in a nearby store if a product is out of stock, or order that product for home delivery or collection, highlighting the blending of the physical and digital retail spaces.
Seroux continued: “40% of consumers still favour traditional sales checkout in-store, whereas, 19% would like to use more digital methods such as self-checkout on the shop floor with a shop assistant via a mobile device (8%). Interestingly, almost two-thirds (63%) of retailers agreed that checking stock availability was the most important customer-facing duty performed by their shop assistants in 2022.
“Over the last decade bricks & mortar spaces were seen as liabilities in a digital era. However, the perception of the physical store has been fundamentally changed by the impact of the pandemic.
“Today, many retailers are revaluating the roles of their stores, recognising their added value as strategic hubs for online sales, not least as a fulfilment hub for click & collect, returns, endless aisles, same-day delivery and more. While digitalisation and frictionless shopping are certainly two of the big winners from the pandemic, the research shows that we should not be too quick to discount the importance of human interaction or the role of the physical store in the era of digital commerce,” finished Seroux.
Deliver On Your Promise to Customers
Contact the Manhattan team to learn more.