Retailers with brick-and-motor stores who are finally figuring out how use the internet for online sales to increase their revenue are doing so and Wall Street is responding with rises in their stock value.
A new term, ‘omnichannel,’is being used to describe this utilization by retailers of online sales to boost their brick-and-motor business and vice versa.
Retailers are finally utilizing online ordering and providing speedy deliveries like Amazon or in-store or cub-side pick-ups of the purchases customers have made online. Many customers also will go on-line to review what’s available in-store before going out to do their purchases, so its imperative for retailers to have that on-line presence.
Retailers are discovering that having a brick-and-motor business is something they can offer customers that Amazon cannot. It not only saves customers in shipping fees it also saves the retailers in shipping costs as well when customers can place and pay for their orders online and then go to the store to pick them up on the same day. Target says it’s 90% cheaper for them when customers do that.
Stores like Walmart, Target, Home Depot, Best Buy, Macy’s, Dick’s Sporting Goods, Kohl’s, Nordstrom, Lowe’s and J.C. Penney, in that order, have been named in a study by Internet Retailer as some of the best ‘omnichannel’retailers.
Walmart reported a 37% in digital growth with a gain of 16% in its stock; Target’s online sales shot up by 42% and Best Buy’s digital business grew by 1.5% in the US.
One of the areas of high growth too for stores like Walmart who have an online presence is groceries. Walmart is finding great success in providing online grocery sales with in-store or curb-side pick ups or even now ‘in-home’deliveries which it found to be successful in its trial stores in New Jersey and will be expanding this service offering in a few more states.
Even restaurants are getting into the picture of reaping ‘omnichannel’benefits. Customers can go on-line to place and pay for an order then have food delivered, picked it up themselves or have their order ready when they arrive to dine in-store.
According to the National Diary Purchase Group (NPD), which is an American market research company based in New York, restaurant digital orders have increased by 23% and expected to keep on growing. NPD also has found that 60% of orders are done using mobile apps.
Convenience is definitely a factor in the benefits of retailers having an ‘omnichannel’inter-connection between on-line presence and a brick-and-motor store, making big differences in their rising sales revenue and stock values.