In its annual omnichannel leadership report, NewStore, the turnkey omnichannel store solution, looked at the omnichannel competence of 250 luxury, premium and lifestyle brands.
Notably, while technology investments surged at the beginning of the pandemic as companies sought to bolster digital capabilities, NewStore’s latest report revealed that the spike in omnichannel innovation in 2021 has since stalled. Still, the authors of the report said, customers continue to want more and in order for brands to meet these expectations, “they need to increase the rate and depth of their transformations.”
“The 2022 Omnichannel Leadership Report found that many brands took the path of least resistance when it comes to embracing omnichannel. Unfortunately for them, short-term solutions will only lead to long-term problems,” said Stephan Schambach, founder and chief executive officer of NewStore. “On the other end of the spectrum, this year’s omnichannel leaders have shown they understand that the customer experience is not only the biggest competitive advantage, but also today’s most important barometer of success. This is reflected in the technology investments they have made and continue to make. Going forward they will serve as the benchmark for the rest of the industry.”
NewStore’s research was conducted through mystery shopping which audited brands’ websites, mobile applications, call centers and in-store experience. Points were earned across four categories: digital engagement, omnichannel convenience, customer experience and associate enablement. Additionally, the company factored in results from its recent Ideal Associate Profile Survey, which identified the associate capabilities valued most by consumers.
The top five brands from the evaluation are Nordstrom, DSW, Louis Vuitton, Bergdorf Goodman and Fabletics. According to NewStore, these retailers are at the forefront of omnichannel, having successfully unified digital and physical channels while making shopping simple and seamless for the consumer.
While these retailers exhibited great progress for the industry, ultimately, NewStore’s report concluded that there is still work to do for brands to reach the potential growth in retail today with 80 percent of the brands evaluated having received 50 percent or less of the possible points on the scoring scale.
Looking across all brands, the report revealed that 74 percent of brands offer contactless payment options down from 83 percent in the year prior. However, brands offering in-store pickup (53 percent) and brands offering endless aisle purchases (57 percent) both saw an increase year-over-year.
Customer experience also saw some increases with the brands offering store-to-door shopping reaching 73 percent compared to just 46 percent last year. Stores offering cash wrap in-store remained stable.
Looking across associate enablement, the data showed 48 percent of brands are giving associates mobile deceives — down from 68 percent in 2020 — and a decrease to just 19 percent of brands offer mobile checkout.