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Matthew Solusod, CX operations manager, Aviator Nation

“This was a problem for us because it took a lot of time,” Solusod says. “It took one or more employees away [to process returns or exchanges] during a time when we had to focus on our online sales channel.”

Aviator Nation’s return rates were on the rise between 2019 and 2020. The 1970s-inspired leisure wear retailer turned to Loop Returns, a returns services vendor. Aviator Nation processed its first return with Loop Returns in April 2021. By 2022, the retailer’s return rate dropped below 12%. It also offered bonus credits (by percentage) and in-store credit incentives to help encourage sales, according to Loop Returns.

After implementing Loop, Aviator Nation’s retained customer lifetime revenue is 63% for existing customers, Solusod says.

From April 2021-2023, the average upsell per return was $11.99. For every return an Aviator Nation customer submits, Aviator Nation earns $11.99 in new revenue.

From April 2021-November 2022, refunds decreased 11% and Aviator Nation retained 56.6% of revenue from returns. The average upsell per return during this period is $10.51.

“I think that’s about a third or half of what [the refund rate] was before,” Solusod says.

Aviator Nation uses ecommerce platform Shopify to run its website. Loop Returns integrates with Shopify.

“[Employees] can be more proactive rather than reactive. They are not spending time on menial tasks like manually processing returns,” Solusod says.

For example, if an item is out of stock, Aviator Nation employees can proactively reach out to customers to let them know and present other options, he says.

Aviator Nation leverages store inventory for online orders

In late 2022, Aviator Nation launched its omnichannel fulfillment option. Aviator Nation has 17 stores throughout the U.S. in California, Colorado, Hawaii, Texas, and Tennessee.

“Now we’re able to unlock all our retail locations and inventory. It gives a lot more availability for people shopping on the website,” Solusod says. “This also means we’re churning through inventory of stores quicker. We have a lot more inventory available for people shopping on the website.”

The retailer plans to launch buy online, pick up in store (BOPIS) in 2023.

“That way, rather than having to wait for something to ship, you can just pop into a store and pick it up,” he says.

Solusod says each store’s inventory is available to fulfill online orders. Fulfilling online orders in store saves shipping costs, he says.

“If a customer near the Miami [store] location places an order, we can have Miami store fulfill that item. That saves us some cost,” Solusod says. “I think it also makes for a better experience. The customer can oftentimes get their item faster with the BOPIS option we’re rolling in.”

Aviator Nation’s mobile customers

The majority of Aviator Nation shoppers shop using their mobile devices, Solusod says. The retailer launched its own app in 2022.

“The app has been really successful,” he says. He did not share what portion of conversions come through the mobile app, but he says about 70% of online shoppers are converting through their mobile devices.

About 70% of Aviator Nation’s shoppers convert through their mobile devices. The retailer launched its own app for mobile devices in 2022.

Aviator Nation’s production and fulfillment centers are both located in California in the fashion/garment district of Los Angeles. The retailer sources its materials within the U.S.

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Target sales

Q1 comparable digital sales dropped 3.4%, versus a 3.2% rise in the year-earlier period.

Target said its digitally originated sales — transactions that can be attributed to its website and apps, including online purchases and buy online, pick up in store — fell to 17.5% of total sales from 18.2% in the comparable period of 2022.

Same-day services (Order Pickup, Drive Up and Shipt) saw mid-single digit growth in the first quarter, led by high-single digit growth in Drive Up.

Net income dropped 5.8% to $950 million from $1.01 billion in Q1 2022.

Organized retail crime

In a written statement, CEO Brian Cornell said the retailer expects that shrink will slash some $500 million from Target’s profitability in 2023.

“While there are many potential sources of inventory shrink, theft and organized retail crime are increasingly important drivers of the issue,” Cornell said. “We are making significant investments in strategies to prevent this from happening in our stores and protect our guests and our team. We’re also focused on managing the financial impact on our business so we can continue to keep our stores open, knowing they create local jobs and offer convenient access to essentials.”

Target ranks No. 5 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

Margins and inventory

First quarter operating income margin rate was 5.2% in 2023, compared with 5.3% in Q1 2022.

A decline in an operating income margin rate is generally seen as evidence of inventory discounting. Target announced in June that it would dramatically reduce inventory by slashing prices after supply-chain woes across the retail industry led to a surge in unsold goods.

Inventory at the end of Q1 was 16% lower than the year-earlier quarter. That reflects a more than 25% reduction in discretionary categories.

Outlook

Target maintained its previous sales and profit outlook for the year.

For comparable sales in the second quarter, Minneapolis-based Target said it’s planning for a wide range of outcomes “centered around a low-single-digit decline,” according to a written statement accompanying the earnings report.

Target’s sober outlook for its fiscal second quarter, which began in late April, will do little to assuage worries about weakening U.S. consumer spending, said Adam Crisafulli, an analyst at Vital Knowledge.

“Target could have been worse, but it’s still not good,” Crisafulli said in a note to clients.

Q1 2023 Target earnings

For the three months ending April 29, 2023, Target reported:

• Revenue from sales of $24.95 billion, a 0.5% rise from the $24.83 billion in sales a year earlier.
• A 0.4% rise in the cost of sales to $18.39 billion from $18.46 billion in the comparable quarter of 2022.
• Net earnings of $950 million, a 5.8% drop from the $1.01 billion reported in Q1 2022.

Bloomberg News contributed to this report.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

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Each year, Digital Commerce 360 and Bizrate Insights looks at the behavior of home goods buyers. We begin with their online buying penetration, assess the user experience they seek and address the role of the store in a category where touch and feel may matter more than others.

I’ve been spending significant time on home sites as I help my daughter think about furnishing her first apartment. Thinking back to a decade ago and the impact of the pandemic on the online home goods experiences, online retailers have elevated their online and omnichannel experiences, driving category growth.

6 in 10 online shoppers purchased 26%+ of their home goods online in the past year

Online shoppers remain active with home goods research and cross-category buying as they upgrade homes, seeking savings along the way.

And online shoppers often have home needs that require researching to make the right selection. Part of those home needs included:

• Upgrades to their homes (47%)
• DIY projects (38%)
• Moving to a new home (13%)
• Kicking off contractor projects (12%)

Gathering information about these activities often meant researching ways to enhance their home online (29%) and perusing social media for ideas (25%). This should suggest to retailers that comprehensive information fosters purchasing for home goods shoppers.

A broad assortment allows for purchasing in many categories and we surveyed online shoppers across 4 particular areas: outdoor (35%), new furniture (33%), appliance/high ticket (26%) and home office (22%).

Remaining competitive with promotions encourages purchasing, and 42% of shoppers showed interest in saving money by taking advantage of promos on interested products.

Price, savings, past experiences and being in stock are the conditions most likely to lead to online purchasing

When online shoppers are asked what drives them to place an order, money talks. That starts with the right price at 68%, along with the always-in-favor free shipping at 61%. Free return shipping continues to see traction with 38%, suggesting it leads to placing an order. 26% cited promotions beyond free shipping, while the ability to finance (at 14%) saw more limited interest.

Past experiences with retailers engender trust for future buying. In fact, 57% suggested that was a reason to buy again. Other factors included trust in the brand (39%), being a member of a loyalty program (29%) and the retailer’s support of causes that resonated with the shopper (among 10%).

Online shoppers have become accustomed to a strong user experience that is efficient and replete with imagery, information and tools. Half of those surveyed cited the overall experience as an important conversion attribute.

Other UX elements focused on speed and included an efficient site search, which 31% cited, fast checkout (21%) and a fast-loading site (18%).

Content that most factored into conversion was the quantity/quality of product reviews at 43%. Others that had more limited impact on conversion were:

• Ample product information/imagery (16%)
• A personalized site based on past behavior (15%)
• Videos (12%)
• Interactive tools (6%)

Fundamentals such as product selection (at 53%) remain atop the list for online shoppers. There is no substitute for being in stock and having timely delivery, as 45% of survey respondents suggested. Logistics also continue to play a role with guaranteed delivery times (27%), BOPIS (16%) and curbside pickup (10%) a more limited factor.

Customer service had some impact as those surveyed cited easy access to customer service information (19%) and the ability to contact customer service via multiple means (18%).

Home goods shoppers require many details when shopping online and like to compare products along the way

Basic information is most important to guide decision-making, from ratings to price and getting a range of views of the product. Customer ratings/reviews topped the list of features at 52%, while access to pricing (51%) was also critical for the majority of online shoppers. Seeing the details was a must in this category and thus having the ability to zoom in on images at 35%, images in the home setting (23%) and photos from other shoppers (21%) also resonated with shoppers. Videos at 12% and livestreaming (5%) were the least important elements.

Product comparison is important in this feature-rich category. Being able to look at products side by side is invaluable for shoppers, as 35% noted. Category-specific content that enriches the experience seems to have more of a niche following. How-to guides were important to 17%, while room design tools (11%), product configure (10%) and product customization (9%) followed behind. Trailing in the end were augmented reality (8%), fabric swatching (7%) and styling profilers (7%). While tools are abundant, only a small group of shoppers see them as important.

Logistics are critical in this category, as it often lends itself to scheduled delivery with more complexity than a typical standard shipment. 30% said accurate delivery windows are important to them. That may be elevated due to supply chain concerns during the pandemic.

Merchandising is about inspiration, and retailers used it extensively to capture online shoppers’ attention. Topping the list were new products and product recommendations, both at 20%. They are often personalized using both similar and related products, making the shopping experience more efficient as well. Top sellers (at 15%) and trending products (9%) also had roles to play.

Add-on services are valuable for shoppers and can be an important revenue generator for retailers

The majority of online home goods shoppers are likely to take advantage of add-on services, with 23% on the fence and only 26% unlikely. The convenience and confidence that comes with being able to leverage such services is invaluable. Additionally, the likely margin among retailers and the growth of partners to help fulfill these needs appears to have grown in past years.

When buying home goods, shoppers increasingly use mobile devices while also watching video and gathering information. 51% indicate they have used smartphones for research and purchasing so certainly a mobile-first mentality is advised for today’s home goods sellers.

Creating videos in support of the buying experience is desirable to shoppers who take advantage of available content. 37% of survey participants watched video about a product in consideration and 26% watched home and garden TV.

Social media has a role to play in gathering information and inspiration, as 24% peruse social media to get ideas and 17% read blogs for design ideas.

Services are integral, but adoption is not universal

Tool usage including A/R came in at 13% and 3D room planners at 12%. While I have found them valuable personally, they’re not always easy to find on the sites and not all buyers have such sophisticated needs.

The same goes for appointments and services, which are often product dependent. From our survey respondents, just 10% booked in-home services while 9% booked Home Advisor/Task Rabbit services and 8% purchased product assembly.

From a design and appointment point-of-view, 8% used in-store design services, and/or a virtual appointment with an associate/designer, so they are still relatively limited among home goods buyers.

Online home goods shoppers have a heightened awareness of where products are available and enjoy the conveniences of an omnichannel experience

Omnichannel-wise, there was a need to know about availability as 44% checked product availability in-store. But unfortunately, from an inventory perspective, 31% encountered out-of-stocks online.

These shoppers have come to enjoy BOPIS (28%) and curbside pickup at 21%. And many like me visit the store in advance of placing an order (26%) for a variety of reasons.

Expectations around logistics continue to grow as 20% ordered for same-day delivery. Complications arose with late deliveries seen among 16% while 14% had orders canceled. And sadly, 13% said they couldn’t reach customer service in a timely manner.

Services-wise, 12% contracted for haul away as it certainly makes things simple, while just 8% used a retailer’s white glove service.

From a design perspective, just 11% took advantage of design services while 10% used AR or 3D tools. Though small in number, I imagine this customer would be of great interest from a dollar contribution standpoint.

Home goods buyers like to visit the physical store to see products in person when they need items quickly and to save money

There is no substitute for the visit as stores allow shoppers to see and experience products first-hand.

The biggest reason shoppers visited the store, 60% said, was to see products in person. 31% also wanted to road test the products. There is also a trust factor in play, too. 24% of online shoppers trust the product more when they buy in person. And of course, there is the experience for 22% as they enjoy seeing how products are displayed, while 18% find they get a full sense of the brand experience.

There is the people factor for 16% as they like to get advice from in-store experts. Some 12% find the website experience inadequate and 8% are not satisfied with online customer service.

A unified experience

Stores allow shoppers to avoid shipping and channel-only promotions are seen as appealing. In fact, 40% didn’t want to pay for shipping. 36% took advantage of in-store sales or promotions and 11% feared dealing with counterfeit goods.

Omnichannel options are convenient for shoppers facilitating pickup and returns. That especially comes into play for the 41% who need items quickly. Additionally, there is a desire among some 24% of those surveyed to support local retailers. Another 21% like the convenience of picking up at the store. Similarly, 16% appreciate being able to return to the stores as well.

Looking ahead, the home category has clear growth opportunities that would benefit online shoppers. The majority of online shoppers said they will at least spend the same (37%) or more (25%) in the first half of 2023.

The home goods category is one that requires investment. Retailers often add new products to the mix. The combination of inspiring merchandising, robust product and category content, and tools is just the start. This, coupled with the logistics and services to compete with the best retailers, will move the growth needle higher once again.

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Its loyalty program, the Neighbor’s Club, surpassed 30 million members last week, Lawton said. During the quarter, he said, Tractor Supply opened its ninth and largest distribution center, located in Navarre, Ohio.

Tractor Supply net sales for the fiscal Q1, which ended April 1, 2023, increased to $3.30 billion. That’s up 9.1% from $3.02 billion in the year-ago quarter. The retailer attributed the growth to its acquisition of Orscheln Farm and Home in the fall, new store openings and growth in comparable store sales.

Comparable store sales increased 2.1%, lower than the increase in the year-ago Q1 (5.2%). Tractor Supply attributed the smaller comparable sales growth to a 2.8% average ticket growth offset by a comparable average transaction count decrease (0.7%).

Tractor Supply ranks No. 102 in the Top 1000, Digital Commerce 360’s database of the largest North American online retailers by web sales.

Omnichannel focus at Tractor Supply

Tractor Supply fulfills 75% of ecommerce transactions through a store location, Digital Commerce 360 reported recently.

“A large percentage of our ecommerce orders — over half — are picked up either in the store or curbside,” said Letitia Webster, senior vice president of ecommerce, omnichannel and master data at Tractor Supply.

With nearly 2,100 store locations, Tractor Supply’s customer is increasingly a hybrid shopper that shops in store and orders online, Webster said.

Tractor Supply Co. earnings

In the fiscal first quarter ended April 1, 2023, Tractor Supply reported:

• Tractor Supply net sales increased to $3.30 billion. That’s up 9.1% from $3.02 billion in the year-ago quarter.
• Gross profit increased 10.7% to $1.17 billion from $1.06 billion in the prior year’s first quarter.
• Mobile app sales account for more than a fifth of digital sales.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

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The furniture retailer says the money will go toward opening new stores and creating new fulfillment networks. It marks the largest ever U.S. investment from Ikea, and the company’s largest investment in a single country.

Ikea ranks No. 3 in the Europe Database, Digital Commerce 360’s rankings of the largest online retailers in the region.

Ikea plans a variety of store formats

The retailer says it will open eight new stores in the next three years, along with nine locations of its “plan and order” format. These locations are smaller than the retailer’s iconic warehouse, dedicated exclusively to kitchen, living room, and bedroom furniture. Customers treat the smaller stores like showrooms and order pieces, but nothing is actually available to purchase in-store and take home immediately.

The furniture retailer says it will also open 900 pickup locations in the U.S. in the next three years, some of which will be attached to larger stores. Ikea plans to hire 2,000 additional U.S. workers to staff these locations. The furniture company did not specify where these new locations would be in the U.S.

“It is in all the states across the U.S. where we see opportunities, but I would say in particular the South, where we see big demand that we have not so far been able to respond to,” head of Ikea Retail Tolga Öncü, told Reuters.

As of April 2023, Ikea has 51 U.S. stores. In 2022, the retailer opened 15 pickup locations and two plan and order stores. Ikea also has San Francisco and Arlington, Virginia locations planned for summer 2023.

The U.S. is a major growth opportunity

Ikea expects the U.S. to surpass Germany as its largest sales market in the near future, Öncü, told the Financial Times.

“The U.S. is one of our most important markets, and we see endless opportunities to grow there and get closer to the many Americans with affordable products and services,” Öncü said in a press release. 

Ikea’s U.S. sales for fiscal 2022 reached $5.9 billion, according to the company’s annual report. This was equal to fiscal 2021 U.S. sales, but ecommerce sales were up nearly 19% in 2022.

The retailer says these new locations will make its budget furniture accessible to more American shoppers. ” Our priority is to become more accessible, while staying as affordable as possible for the many people, which is especially important given the increasing costs of living.” CEO & Chief Sustainability Officer at Ikea US Javier Quiñones said in a statement.

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While some retailers like Kohl’s Corp. discontinued its curbside pickup service in August 2022, and book retail chain Barnes & Noble removed designated parking spots for curbside, others are ramping up services.

Tractor Supply Co. (No. 102 in the Top 500) is investing more in BOPIS and curbside. The retailer’s conversion rate for these omnichannel services is 60% higher compared with home delivery. Men’s big and tall apparel retailer Destination XL Group Inc., (No. 458 in the Top 500) prefers to use its stores as additional fulfillment locations “as a last resort.” And home improvement merchant The Home Depot Inc. (No. 4 in the Top 500) is investing in its mobile app to give shoppers the flexibility to research products while in store as well as navigate BOPIS and curbside.

Omnichannel report findings

US ecommerce growth falls as shoppers opt for in store

Retail chains are giving Amazon a run for market share. Amazon and its third-party marketplace sellers represented 35.7% of digital spending in the U.S. in 2022. That’s down from 36.9% in 2021. While the web giant accounted for a fifth — 20.7% — of all gains in U.S. ecommerce in 2022, according to Digital Commerce 360, that’s a big drop compared with 34.4% in 2021 and 35.1% during the pandemic-fueled ecommerce boom of 2020. There’s ground to be gained by retailers able to leverage technology and strategy — like omnichannel services — to convert a shopper who wants convenience and dependability online and in store.

Digital Commerce 360 projects U.S. retail sales will grow 4.2% in 2023 to $5.08 trillion. Online retail sales will increase 5.8% to $1.08 trillion — the slowest growth for total retail since 2019 and for e-retail since the banking crisis of 2008-2009.

Ecommerce growth has slowed, but it continues to take market share from brick-and-mortar stores. U.S. ecommerce grew 7.7% in 2022. That’s less than half of 2021’s 17.8% and still lower than pre-pandemic 2019 with 12.5% growth.

BOPIS and curbside availability shifts in the Top 500

Retail chains in the Top 500 in 2023 reflect a consumer more comfortable returning to in-store shopping while leveraging online buying capabilities. BOPIS for retail chains in the Top 500 reached 82.7% penetration in 2023, up from 76.3% in 2022.

Curbside for retail chains in the Top 500 declined to 47.5% adoption in 2023, down from 61.2% in 2022. The ability to schedule an in-store appointment also dropped, to 16.5% in 2023 from 24.5% in 2022. This suggests that consumers are returning to impromptu shopping as pandemic-related fears subside and people are no longer fearful of gathering in public.

2023 Omnichannel Report

Analysis of omnichannel trends in today’s evolving retail world. Includes over 25 charts, data on the Top U.S. retail chains, consumer survey results on omnichannel shopping habits, and new developments in the race to fulfill online orders.

View Details

This article is based on Digital Commerce 360’s 2023 Omnichannel Report. Digital Commerce 360 Gold and Platinum Members receive a complimentary copy of this report as part of their membership. Non-members can purchase a downloadable PDF of this report for $399. View the table of contents here.

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Retailers are rethinking how to offer shoppers more options to shop the way they want to.  

Investing in mobile apps to link online and in-store shopping has been particularly successful for hybrid customers. And as the habits of hybrid shoppers become clearer, retailers are strategizing which omnichannel services to expand and which to cut.  

Digital Commerce 360’s 2023 Omnichannel Report is the ultimate guide to understanding how to effectively sell both online and in-store and provide an exceptional shopping experience for customers.  

This report explores case studies on top omnichannel retailers like Home Depot, Tractor Supply Co., DXL, Perry Ellis and more, and analyzes the omnichannel fulfillment methods offered by the 139 retail chains in the Digital Commerce 360 Top 500. 

A helpful guide for both retailers and the vendors that service them, this Omnichannel Report is packed with the latest research and data on the evolving needs of shoppers and immediate changes retailers should make to meet their demands. 

View the table of contents for full details on what’s included in the report.  

Published April 2023

 

WHAT’S INCLUDED 

2023 Omnichannel Trends & Strategies  

A deep dive into what’s changed with BOPIS and curbside pickup, store locators and visibility, and omnichannel returns. 

 

 

25+ Data-Packed Charts  

Start visualizing the power of strategies and trends in omnichannel retailing and share critical data with your colleagues and clients.   

 

 

The Shopper Speakers 

We’re revealing our findings from a 2023 Omnichannel Survey, conducted by Digital Commerce 360 and Bizrate Insights. 

 

 

WHY YOU SHOULD BUY IT 

Digital Commerce 360’s 2023 Omnichannel Report is the industry’s most detailed study of omnichannel strategies. This report is critical for retailers to build effective omnichannel strategies and deliver a seamless shopping experience for customers.

 

OTHER REPORTS YOU MAY LIKE 

Web Design & Customer Experience Report

An analysis of how retailers are innovating in web design to increase sales 

Ecommerce Platforms Report  

An analysis of the top ecommerce platforms and tips for switching providers 

Ecommerce Conversion Report  

An analysis of retailers’ strategies and investments to increase conversion rates  

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But what is also important is that shopper behavior varies by age, as our Digital Commerce 360 and Bizrate Insights survey of 1,069 online shoppers in February 2023 reveals. It illustrates where the greatest behavior differences exist among age groups and what they mean for retailers. A look at how some of our research findings played out should be insightful for understanding how best to serve your customer base.

The 30-39 segment is most aggressive in online activity. One such example is their interest in checking for product availability at a nearby store. Age breakouts are as follows:

• 18-29 (72%)
• 30-39 (75%)
• 40-54 (73%)

This contrasts with those 55-64 (57%) and 65+ (55%).

In terms of age gap – where we look at the difference between the lowest and highest scores among age groups – curbside pickup has the largest gap at 26%. In-store pickup at 20% follows close behind. The 20% gap for picking up online orders in store is also a testament to these impressive numbers.

Post-COVID omnichannel transaction volume was “more” for the young

When it came to omnichannel transactions in 2022 vs. pre-COVID, 79% of shoppers 18-29 and 74% of those 30-39 had completed “more” of these transactions. Meanwhile, just over half of those 55+ made the same level of transactions.

The number of transactions was higher

To take it one step further, younger shoppers more frequently made 11+ omnichannel transactions in the past six months. 40% of those 18-29 were high-volume buyers, as were 37% of those 30-54.

Older segments 55-64 saw 25% in this volume range, which was similar to those 65+, where 24% were at a comparable rate.

They purchased across a wider range of categories

Our research suggests that younger shoppers complete purchases at more of the researched stores and categories we reviewed. This snapshot finds the only exception was hardware/home improvement, which older shoppers favored. Beyond that category, the biggest gaps relative to age were among Target buyers (35%) and the health and beauty segment (25%).

Curbside and BOPIS ratings are strong 

Omnichannel buyers were asked to rate their purchases on a 1-10 scale where 10 is excellent. Though the age gap is exactly the same, when looking at 7-10 scores, younger shoppers give higher scores to curbside. Older shoppers give BOPIS better performance numbers.

To facilitate omnichannel ordering, the app is in favor

We know from this research that 66% of omnichannel shoppers frequently/exclusively use the mobile app for placing and picking up orders.

Omnichannel shoppers from ages 18-54 are more likely to use the app. Those 30-39 are the biggest users (75%) while ages 18-29 (at 70%) are close behind. Those 40-53 follow at 69%. My personal experiences with the app are positive, and it makes me always favor that option. More people are likely to embrace the apps as they continue to improve over time.

Ease drives app usage for younger omnichannel shoppers

Communication emanating from the app is more desirable among older audiences, our data shows. That includes being notified that orders are ready and having the ability to receive texts.

Younger shoppers appreciate the app’s user experience from a shopping perspective and being able to quickly find stores with in-stock products. Additionally, storing phone and vehicle information along with gift cards and coupons has greater appeal among younger segments.

Mobile activities are mainstream for younger shoppers

When it comes to mobile activities that were part of shopping behavior over the past six months, shoppers 30-39 had the highest penetration in six distinct mobile areas. Meanwhile, those 65+ consistently had the lowest.

• Buy a product: 51%
• Locate product in a store: 42%
• Facilitate in-store or curbside pickup: 34%
• Use barcode scanning in a store to get more product information: 32%
• Self-checkout in retail store: 26%
• Make a purchase on a phone while in a store: 23%

Locating product in a store had the biggest gap at 23%. From there, using a mobile app to buy a product while in a store or facilitate the omnichannel pickup both followed at 22%.

Younger shoppers’ omnichannel volume will grow, though the pace may lag behind older counterparts.

Older shoppers are in catch-up mode as they were likely more cautious when it came to omnichannel. They look to be aggressive in 2023 with their omnichannel transactions. 79% of those 55-64 and 76% of those 65+ intend to place more in-store and/or curbside pickups in 2023.

Younger shopper numbers came in at 41% for those 18-29 and 50% for the 30-39 segment. It’s not largely an expression of overall interest, but there is only so much upside on their purchasing potential.

What does age really mean for retail?

All customers are important, but there is an interesting younger segment that has embraced omnichannel and supporting mobile activities. These shoppers have shown time and again that they are willing to test new innovations in the omnichannel world. I’m inclined to conclude that if nurtured, these activities will be important for a long time to come.

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