· Significant revenue growth opportunities created by consumer cross-channel shopping behaviour
· Retailers cannot tap into this growth until they create cross-channel customer touch-points
London – June 30, 2009 – Growth in the retail sector is still achievable despite current economic trends according to new research from Ipsos MORI commissioned by Sterling Commerce. The online study, carried out across Great Britain, France, Germany and Sweden, revealed that consumers are researching and shopping more online and expect the conveniences of online shopping in their in-store shopping experience. These findings highlight opportunities for retailers who can integrate customer touch-points across channels to improve the customer experience and increase revenues.
The online study found that on average over half (54 percent) of respondents research consumer items online and 42 percent regularly purchase goods online. For those respondents shopping in stores, an average of 72 percent state that it is useful, or even vital, to be able to easily order out-of-stock products when they are in the store and have them delivered to their local store or home, demonstrating how cross-channel touch-points can help retailers face “out of stocks.”
David Hogg Retail / CPG Marketing Manager at Sterling Commerce said: “Retailers with a true cross-channel strategy can leverage the Internet to drive in-store sales. Today’s spoilt customer appreciates the convenience of being able to collect and return goods via nearby stores, and this increases store traffic. The opportunities are there for retailers to minimise lost sales by stopping customers leaving the store empty-handed. However, it is still rare to find robust in-store processes for order collection and returns that have been designed to seamlessly integrate with home shopping Websites and order fulfillment capabilities.”
The research also revealed that consumer channel shopping habits vary by retail segment:
- Online – The book, DVD and music market has become a predominantly online channel. An average of 64 percent of consumers in Great Britain, Germany and Sweden now buy these products online. France revealed considerably lower figures, with only 43 percent of consumers choosing to buy these products online.
- Cross-Channel – The consumer electronics market has nearly two thirds (60 percent) of consumers choosing to research a product online first before purchasing it in-store (37 percent)
- In-Store – In the apparel market, in-store purchases lead across the board. In Sweden and France, in-store purchases are high (79 percent and 77 percent, respectively); lagging behind are 74 percent of consumers in Great Britain and 64 percent of consumers in Germany making purchases in the store. French shoppers take the lead when researching apparel purchases online (40 percent), followed by those in Great Britain (35 percent) and then 32 percent in both Germany and Sweden.
According to Ivano Ortis, EMEA Research director, IDC Retail Insights: “We believe that the apparel retail segment may be the next big boomer for online shopping - our recommendation to retailers is to continue to support technology investments that enable immersive shopping experiences and improved channels' performance and efficiencies. The development of state-of-the art Web-user interfaces and embedded order management features that can result in improved cross-channel synergy and total inventory visibility will continue to drive the growth of online sales in the segment[1].”
“The different retail segments need to learn from each other,” concludes David Hogg. “For example, book, DVD and music stores can learn from consumer electronics retailers who have implemented innovations such as in-store returns, save-the-sale, or click-and-collect capabilities to maximise revenue by taking advantage of impulse purchases. However, until all retailers address their customers’ buying and purchasing preferences and create cross-channel touch points that support these preferences, many of them will not be able to tap into these potential revenues.”
Ipsos MORI’s online omnibus service, i:omnibus, polled 1,000 consumers aged between 16 and 64 in the UK, Germany, France and Sweden. The research focused on the most popular consumer merchandise: consumer electronics, apparel (clothing and accessories) and books, DVDs and music. The study was rolled out in April 2009.
About Sterling Commerce
Sterling Commerce, an AT&T Inc (NYSE:T) company, Sterling helps companies optimize and transform their Business Collaboration Network to accelerate revenues and reduce costs. More than 30,000 customers worldwide use Sterling Commerce applications and integration solutions to connect, communicate and collaborate inside and outside their enterprise. Headquartered in Columbus, Ohio, Sterling Commerce has offices in 24 countries. More information can be found at www.sterlingcommerce.co.uk
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For media enquiries please contact:
Willemijn Steegenga
Sterling Commerce Tel:
+31 (0) 20 560 5794
willemijn_steegenga@stercomm.com
Lindsey Marsh / Kate Luke
Nelson Bostock Communications
Tel. +44 (0) 20 7792 7446
lindsey.marsh@nelsonbostock.com katherine.luke@nelsonbostock.com
[1] Business Strategy: eCommerce and Omni–Channel Retailing Directions, May 2009, Doc # GRRS01R9)