Omnichannel 2019-2020

Leadership Report
An assessment of
over 200 luxury,
premium and lifestyle
brands’ omnichannel
competence.
Contents

IN T RO D UC T IO N 2

M E T H O D O LO G Y 4

E XE C UT IV E S UM M A RY 6

O M N I LE A D E RS 12

D IS C O V E RY 14

P URC H A S E 18

F ULF ILLM E N T 22

C O N S UM E R E N G A G E M E NT 28

A S S O C IA T E M O B ILIT Y 32

C O N C LUS IO N 36
Introduction
Retail has been on the omnichannel
track for years now. In fact, the industry
seems to be not only bored with the
term but also frustrated. Why?

Because it’s really hard to pull off.

T he technology trying to make omnichannel

work was built years ago, when online and
offline were separate concepts. We might want
to move on because time has passed, but we’re
not yet in a position to do that. There are still
too many brands grappling with how to wholly
transform their business to accommodate the
modern shopper. They may be aware of the need
to look through an end-to-end lens, but we’re still
seeing a lot of fragmented strategies that address
individual touchpoints versus the entire customer
The
They’ve jumped through those hoops quickly YOUR RESULTS
journey.
and efficiently because they recognize we’re

Omnichannel not in the midst of a trend - this is the future of

Omnichannel Leadership Report

That’s not to say there aren’t brands reaping the
retail. Omnichannel is strategic. Omnichannel is strategic.
rewards of change. A number of brands have
gone all-in to overhaul their operations from the Leadership Let us help you understand how
With the 2019-2020 Omnichannel Leadership
top-down and inside-out. They’ve put mobile,
connected inventory and real-time data at the
Report aims Report, we aim to show how the sum of the your customers experience your
brand across touchpoints.
to show how
customer journey is greater than its parts.
heart of their approaches, making digital and
There has been bias by retailers around certain
physical retail feel like one for today’s customers.
This is what shoppers expect after all. They want the sum of services and solutions, such as mobile point-
of-sale, customer relationship management
Request a custom report today:
to shop at TUMI - not TUMI Online or TUMI In- www.newstore.com/myscore
store. That’s a distinction we make, not them. the customer and store fulfillment. But today’s shoppers
expect the core capabilities and then some.

To be frank, what the outliers have done that the

journey is The challenge is in having a truly differentiated

greater than
omnichannel experience while staying true to
majority of the industry hasn’t is get out of their
your brand promise.
own way. They aren’t stuck on the cultural shifts
required to become an omnichannel organization. its parts.

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Methodology Data Points
The 2019-2020 Omnichannel Leadership
Report is a critical assessment of over 200
RESEARCH OBJECTIVES Discovery
luxury, premium and lifestyle retail brands. The
• Inventory visibility
brands have been classified based on price
• Recommendations & reviews
point and how they sell their product, as well as
Benchmark each brand’s progress • Shoppable mobile apps
categorized by the type of goods. For our fourth
toward becoming an omnichannel • Digital marketing & social media
edition, our team of researchers audited each
organization
brand’s in-store technologies, website, mobile
properties and call center. We visited their New Purchase
York City flagship or full-line retail stores, where Determine which omnichannel • Mobile checkout
we spoke with customer support and store strategies retailers are investing in
• Endless aisle

associates as secret shoppers to understand • Checkout efficiency

and their effectiveness
• Contactless & digital payments
omnichannel competence, looking specifically at
the seamlessness of the end-to-end customer
journey. Review if/how store associates are Fulfillment
using mobile devices to execute store • BOPIS
In the following section, you’ll find an overview of operations • Ship to store/ship from store
the data points we collected on each brand. They • Delivery methods
map to the major junctions in the omnichannel • Returns
customer journey - Discovery, Purchase and Evaluate the connectedness of
Fulfillment - plus the golden threads of Consumer customer, order and inventory
Engagement and Associate Mobility. Each information, and its availability to
Consumer Engagement
brand received a score from 0 - 100 (100 being customer service and store staff • Promotional & purchase notifications
• Profile personalization
the optimal score) for each section, as well as
• Shopping cart curation
an overall score based on the average of the
• Conversational commerce
sections. All data points were weighted on a Examine how brands apply a digital
relevance scale (low to high), which determines perspective to brick-and-mortar,
the significance of the capability, process or integrating technology and innovation Associate Mobility
experience to omnichannel. into their store experiences
• Inventory visibility & endless aisle
• Mobile checkout
• Clienteling information
• Store fulfillment

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 OMNICHANNEL LEADERS VS. INDUSTRY
Executive
Summary INDUSTRY AVERAGE

LEADER AVERAGE

It’s become crystal clear to the industry that in order to survive the new retail world order,
92%
having an omnichannel experience is table stakes. While this knowledge abounds, we’ve
heard more talk than we’ve seen action. That’s not to say there hasn’t been progress. Our 87% 87% 87%
assessment of over 200 brands shows modest growth and some extremely inspiring
bright spots. The trajectory of the industry is in the right direction. 80%

76%

48%
46%
44%

40%

34%
32%

For the bulk of the space, what The purchase phase especially
we’ve observed is that the needs attention, where

The word
behaviors are there — store most brands are grossly
associates and customer support underperforming across channels.

omnichannel want to provide the highest level

of service. They want to be able
Also, despite more associates
having access to mobile devices

has a new to see a 360-degree view of each

shopper, but online and in-store
on the store floor, they are limited
in the tasks they can use them
buzz about it. systems are disparate. They want
to make common retail tasks like
for. This is hindering many brands
from elevating their store staff into
Overall Discovery Purchase Fulfillment Associate
Mobility
Consumer
Engagement
returns and exchanges fast, but a living website, point of sale, call
workflows are cumbersome. center and fulfillment source.

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Notable
Findings
Discovery

 Finding customer or
76% NEW!

of brands do not have a store

Consumer
Engagement
 Engaging with a brand/
25%
of store associates can
12%
from
2018

product information in-store,
online or through apps.
locator on their mobile app, a
truly surprising statistic since
apps are the easiest bridge
between online and offline.
customer before, during contact a customer outside
and after a purchase.
the store, still low given the
popularity of SMS.

Purchase

 Completing the purchase of a

74% 17%
from
2018

of brands allow the use of

Associate
Mobility
 Using mobile to complete
68% 8%
from
2018

of store associates use a

good or goods in-store, online
or on mobile.
digital payments, which is
a big step forward for the
industry.
omnichannel capabilities mobile device or a tablet,
and engage and transact
finally more than the percent-
with customers.
age of consumers using
mobile in-store (60% per
secondary research).

Fulfillment

 Obtaining a product by
56% 33%
from
2018

of brands offer buy online

collecting it in-store or return in-store, although more
having it delivered. suggest they do but they really
hack the process.

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Takeaways

The leaders are

breaking away from the pack.
The truth is in the numbers - the report’s omnichannel leaders are notably more
competent in each category and overall than their industry peers. We’re seeing it
quite significantly when it comes to mobility - the leaders using mobile have only
small gaps in their offering, while the laggards are hardly using mobile at all. WBR
Insights found more than half of retailers feel ill-prepared to support mobile tech.
But it’s time to overcome the paralysis and just do it (like Nike).

Luxury and basic brands

are edging out the market.
Stores are critical to luxury shoppers. More than any other demographic, they
place a high importance on product touch and feel and store inspiration. It makes
sense then that luxury brands had the highest overall score average (41). Not too
far behind is the basic brands category i.e. the ones you find in a traditional shop-
ping mall. As the makeup of malls change, these brands are evolving to stay
relevant. Don’t count out the mid-market brands, though; many are on the cusp
of tech adoption.

Digital natives still

have room to improve.
Some believe superior technology is a qualifier of a DNVB. But reaching this level
takes time. And the brands we analyzed are not there yet. They averaged a 37
in the report with many brands at the bottom. While their stores are fun to shop,
most have entered physical retail with barebone systems that patch together
solutions. As these brands mature, they’ll scale - that’s when we expect to see
them introduce connected and sophisticated platforms.

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 1 . N IKE

Overall
Omni
2. A T H LE T A

Athleta is flexing its muscles

3 . M O N C LE R
in athletic and athleisure wear.

Leaders
4 . LO UIS V UIT T O N

Currently in “high growth mode,” the Gap Inc. gem continues to invest
5 . B A N A N A RE P UB LI C
in business areas that set it apart from its industry counterparts,
such as sustainability and inclusivity. Additionally, it’s one of the first
brands in its parent company’s portfolio to run its stores on mobile,
connecting shoppers with high-demand products and demonstrating
its commitment to socially-responsible activity. Athleta also landed
its first-ever sponsored athlete this year, USATF athlete Allyson Felix.
This will surely help the brand keep its leading position in the race for
athleisure market share.

Nike is just doing it in more than sports retail but now

all of retail. In the last year it has doubled down on its
D2C strategy, spending $1 billion on its omnichannel
transformation.

From front-end mobile tech like its
Nike App to back-of-the-house data
and analytics capabilities, the brand
is writing the playbook for how to
successfully unite digital and physical
retail. Just look at its New York City
flagship, which boasts six floors
of experiences including custom-
izations at the Sneaker Bar and digital
Pick Up Lockers. Nike is winning
at the engagement, efficiency and
experience game, and what it has
built is marveled by consumers and
retailers alike.
Moncler has been on a
mountain-sized mission to
reinvent itself since CEO
Remo Ruffini took the helm
in 2003. The culmination
is the Genius project,
which required significant
capital investment in IT and
omnichannel platforms.
Moncler now has a regular
dialogue with shoppers
through innovative product
drops and designer
collaborations. Much of this
happens in-store, where
associates leverage RFID
technology to track and
access deep inventory as
well as clienteling solutions
to keep shoppers inspired
and wanting more.
Louis Vuitton is well on
its way to matching its
IRL experience with its
online one. The brand has
long prioritized making its
customer journey seamless
across channels, a task most
other luxury brands reserve
for their stores. Louis Vuitton
store associates are able to
see a 360-degree view of
the shopper, both for owned
stores and department
stores. This information
and more is all accessible
from an iPhone, which store
teams carry on the floor to
provide the highest level of
service and personalization.
Banana Republic has
been outfitting itself for an
omnichannel world over
the last few years. This
Gap Inc. brand caters to
its customers’ wants and
needs by offering solutions
that bridge the in-store and
digital realms of shopping.
Most notable is the ability
to reserve in-store items
from the web, as well as
buy online pickup in-store
(BOPIS). These, and then
some, are all in an effort to
keep driving traffic to stores,
where Banana Republic
engages shoppers with a
simplified and information-
rich experience all from a
mobile device.

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 Stuck In-App

24 %
In-app is the new online. Synchrony research found the number of retailer mobile
01 Discovery

apps used by consumers doubled from two per phone to four in 2018. Despite all
the time consumers are spending on native apps, only 24% of brands have a store
locator on their mobile app. Consumers still love to see, touch and feel products -
more than three quarters of brands are missing out on the ripe opportunity to drive of brands have a
foot traffic and ultimately, store sales. store locator on
their mobile app

95
Partly Cloudy Inventory

Time and
Accurate inventory is hard, but shoppers expect it. And they expect it wherever
and however they shop. Retailers are making positive strides in terms of in-store
%
inventory visibility - associates at 95% of brands can check their store’s inventory
accuracy levels with a POS system. However, when you put the shopper in-app, things aren’t of associates can
are of the as clear. Only 26% of brand apps show in-store inventory information for stores check their store’s
essence. near you. inventory levels

Discovery 43
Free To Roam
Over half of consumers that use retail mobile apps use them while shopping in-store.
Likely, they’re looking up product information or want access to exclusive deals
%
and discounts. Kudos then to the 43% of stores that have publicly-available Wi-
ANALYSIS Fi. Having Wi-Fi is a win-win - it drives convenience and experience for customers, of stores
while giving retailers the opportunity to zoom in on customer behavior. have publicly-
It’s all about the advantage. The better you know your available Wi-Fi
This section of the report had the
shopper (past purchase history, style preferences, personal highest overall average at 48%.
milestones) and the better they know your product As brands reinvest in their direct
(specifications, sizing, availability), the more likely they are to
to consumer strategies, they are
shop with you than your competitors. In today’s experience-
prioritizing data and analytics as it
first retail environment, consumers are happy to browse and The Digital Crossover

42
relates to customer and product

be entertained. But when it comes down to business, time and
visibility. With discovery being
accuracy are of the essence. Here we focus on the ease and
the first step on the customer
efficiency of finding customer and/or product information
online, in-store and with mobile. journey, it’s important to add value
off the bat so net-new customers
become loyal repeat ones.
%
Online product recommendation engines can lead to a double digit lift in sales.
Consumers also love these web features, and are more likely to shop on a site that
curates a look for them without much search effort. When it comes to in-store
though, these tools aren’t yet ubiquitous. 55% of associates can’t access related
products on a POS and even more (58%) can’t look up product pairings to make of associates can
recommendations. Time to apply a digital perspective to physical retail. unlock upselling
opportunities

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 1 . LULULE M O N

Discovery
2 . F RE E PE O PLE
Free People has really
B URB E RRY
3 .
unlocked inventory availability.

Leaders
4 . A T H LE T A
When shopping online, once you select a size it automatically tells
5 . A D ID A S you if the item is available for in-store pickup and where. You can look
for availability up to 100 miles away. This same experience exists in
the brand’s mobile app and in-store. Discovering product is core to
the Free People “boutique” vibe - there is even a “Back In Stock” page
online next to the new arrivals, to make sure you never miss out.

It wouldn’t be a stretch to say that

Lululemon has perfected its product
— and also how shoppers discover it.

The brand makes it easy for customers to search Burberry has uncloaked
inventory both on its website and in-store. Online, you product visibility via the
can see which stores near you have items in-stock. In- Burberry app, a new gateway
store, you can search product several ways - by looking to the brand with features
it up on a wall-mounted screen or via a store associate. that allow you to explore
and browse the latest
Associates have access to accurate, enterprise-wide
collections. You can even
inventory all from an iPhone.
find your nearest store in
the app; save an item to your
wish list then pick it up in
person. You also experience
this seamless commerce
in-store - when a store
associate pulls looks for
you, they can add the items
directly to your cart using an
iPhone.
Athleta has exercised
serious innovation in
order to help you discover
apparel and gear for your
next adventure. Its newly
reinvented app lets you
browse and shop when on
the go. But you can use the
app in-store too - with the
scan feature, you can scan
product barcodes to see
item info and find more sizes.
If you don’t want to use your
phone to find what you’re
looking for, store associates
can check inventory at the
brand’s 100 stores from their
mobile device instead.
Adidas has jumped over
hurdles to put its brand
and products right at your
fingertips with its exclusive
app. The live chat feature is
especially noteworthy, as it
connects you with customer
support agents (around
the clock, seven days a
week) who can help guide
you through your shopping
journey - sharing product
details, stock levels and
more. You’ll find the same
helpful sales people in-store.

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 Wrapping It Up
90% of brands still have a traditional cash wrap, even though some
90 %
02 Purchase

don’t need it to complete a checkout. If you’re not using it as intended,

why not transform that real estate into selling space? You can turn of brands have a
it into a dedicated online order pickup location, or install a demo or traditional cash wrap
customization bar.

Checkout
The Forgotten Buying Channel
For unknown shoppers to become loyal customers, you need to offer a broad range
of support services. While calling may no longer be the norm for consumers, call
17 %
of call centers can
is the centers are still a demand source. However, they aren’t evolving at the pace of
look up an online
digital channels. Only 17% can see or look up a customer’s online shopping cart to
make- place an order. shopping cart
or-break
moment.

74
Let’s Get Digital
%
Purchase
By 2025, a majority of shoppers will carry a phone but no physical wallet. Nearly
three quarters of brands have already set themselves up for success by allowing
the use of digital payments, such as Apple Pay, Google Pay, Alipay and more. This is
up from 57% last year, which shows growth toward quick and easy payments. Even of brands allow
ANALYSIS
so, only 23% of brands advertise the option. the use of digital
payments
The purchase experience often determines a customer’s Brands continue to improve the
relationship with a brand. Checkout is the make-or-break overall purchase process. This
moment. If it is long and complicated, shoppers will abandon is especially true in-store where
their online order or walk out of the store empty handed.
mobile point-of-sale systems
Today’s buyers expect checkout to be fast and efficient -
are being used to diminish
whether online or in store, they want to purchase products Help Wanted

2
lines and cater to phone-

%
with nothing more than a tap of a button. In this second There has been a lot of chatter about self-checkout, especially with the launch of
dependent shoppers. We see

<
section we look at how retail brands are removing friction Amazon’s cashierless Go stores. Despite the renewed allure around the concept,
retailers working hard to make
from the buying process, making purchasing goods in-store, and its proliferation in grocery and pharmacy, it’s not catching on for apparel retail
online and on mobile simple. their physical retail locations
- less than 2% of stores offer it as part of their checkout service. As consumers
profitable. But that’s not to
increasingly dictate their shopping experiences, it’s plausible we’ll see this figure of brands offer
leave other properties behind on
increase in the years ahead. self-checkout
the curve. Shoppers don’t see
in channels - they expect the
buying experience to be apples
to apples wherever they buy.

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 1 . N IKE

Purchase
2 . T IM B E RLA N D

3 . M IC H A E L KO RS
Timberland has blazed a trail with its fast,

Leaders
4 . A T H LE T A easy and secure checkout experience, which
5 . S A IN T LA URE N T
exists at purchase touchpoints from the call
center to online to in-store.

Its call center is especially seamless — customer support can look up

wish lists and online shopping carts (and edit or remove items, too) as
well as place an order for in-store pickup.

Nike’s House of Innovation raises

the bar for all brands when it comes
to the customer buying experience.

With Instant Checkout in the Nike App, Nike Plus Michael Kors fashions
members can skip lines by simply scanning an item and memorable service to
tapping the purchase button. In the app and in-store, be the heart of its brand,
you can also pay with Apple Pay and PayPal to ease especially when it comes to
the transaction. Nike truly wants to build up its direct the purchase process. When
shopping online, you can
relationships with customers by making their lives
easily ship one item to an
a little easier.
address and pick up another
in-store, all within the same
transaction. You are also
served up exactly how
many KORSVIP points you
could earn for your order,
putting glamorous perks like
free shipping and birthday
rewards at your fingertips.
Athleta keeps everyone
moving at the register. Its
point-of-sale system is
completely mobile so you
can check out from any
corner of the store. This
isn’t the experience for just
a simple, single transaction
though - store associates
can process endless aisle
transactions from their
iPhone as well as mixed cart.
Athleta is always thinking
about the conveniences that
will be the most valuable to
customers and this is one of
them.
Saint Laurent’s client
service team makes La
Différence - in-store and
online. They can quickly
access your customer
profile, including saved wish
lists and shopping carts.
Furthermore, the brand
happily accepts telephone
and call center orders. The
service representatives even
take the time to provide
product recommendations
and other information while
they have you on the phone.

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 Infinite Shelf Space

47 %
03 Fulfillment

The more inventory associates have access to, the more they can sell. And when
associates are selling, you create a brand relationship built on trust and reliability.
47% of brands are capitalizing on the benefits of endless aisle, selling stock from
any enterprise location. That’s up from 33% last year. Interestingly though, many
of brands can
brands fall back on referring shoppers to their e-commerce site or they request an
often clunky store-to-store item transfer.
perform an endless
aisle purchase

Order Here, Pickup There

25 %
If consumers can save money on shipping and get the instant gratification of same-
day retail, most will do it. While the benefits of BOPIS are becoming increasingly
A modern- clear, the adoption is still low as only 25% of brands offer BOPIS (slightly less than

day retail last year, although remember we surveyed more brands this time around). Brands
of brands offer
are leaving a lot of additional revenue on the table, specifically luxury and premium
battleground. where the average rates are 16% and 19%, respectively. buy online pickup
in-store (BOPIS)

Fulfillment
Retail’s Return Fake Out

56 %
To be customer-first means allowing shoppers to take any action, including returns.
56% of brands offer buy online return in-store (compared to 23% last year).
Originally the number was higher (79%); however, after digging into return policies,
ANALYSIS we found 23% of brands actually hack the process. Meaning, they accept returns
in-store only to send items back to the warehouse and issue the refund days later. of brands offer
Returns are a retail service - if you expect to cross-sell or upsell, consumers should buy online return
Order fulfillment is a modern-day retail battleground. The In the age of Amazon and the be able to get their money back on the spot. in-store (BORIS)
back-end and supply chain complexities are not lost on us, convenience economy, the bar
but these aren’t things a consumer is privy to. After they place is set high for order fulfillment.
an order, they expect to collect it in-store or have it delivered
Out-of-stocks can be a trillion
in the fastest and most cost-effective way possible. If, from
dollar problem, but more and

the consumer perspective, the process is anything less than
more retailers are averting
smooth, you’ve lost out to their expectations. In this third
this dilemma with endless
section, we analyze which omnichannel fulfillment options
aisle - opening up the potential
retailers have implemented to surprise and delight shoppers.
for a double digit lift in sales.
There is still work to do around
BOPIS and BORIS though, two
cornerstones of store fulfillment.
22
Reservation For One, Please
%
Like BOPIS, offering reserve online pickup in-store is a convenience factor that
can’t be beat. Especially for customers that still view shopping as a multi-sensory
experience and want to try on apparel, footwear and accessories. That said, it’s not
of brands allow
a consistent fulfillment option as more than three quarters of brands don’t offer
shoppers to reserve
it. This could potentially alienate the subset of buyers that prefer purchasing in-
person.
items online

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 1 . RE I

Fulfillment
2 . LO F T
LOFT has been riding high for awhile
3 . KA T E S P A D E
in the fulfillment category.

Leaders
4 . N IKE
For several years now its been delighting customers with the ability
5 . L. L. B E A N to order and ship out-of-stock product from other locations or a
nearby warehouse. This endless aisle capability combined with last
mile delivery and the ability to BOPIS is so important for the brand’s
consumer who is usually a working woman on the go.

REI has reached the

peak when it comes
to order fulfillment.

The brand maximizes its inventory across the enterprise, Kate Spade has had BOPIS
using its store stock to ship from store and to fulfill BOPIS in the bag for some time now
orders - the latter of which you can pick up at customer - not only for its convenience
service. On the flipside, it also has a generous return factor for shoppers, but
policy, especially if you have REI membership - you can also the incremental sales
it drives from added store
easily return any time without a receipt.
traffic. Once customers are
in-store, the brand’s store
associates are empowered
with mobile clienteling
information that they use
to ensure the shopper gets
what she wants and by any
means possible.
Nike continues to train
consumers to expect its
Nike App in every part of the
shopper journey. You can
use the app to enjoy all-star
treatment and friction-free
fulfillment in the New York
flagship. In the Speed Shop
specifically, just reserve
items before you enter the
store, then pick them up at
the dedicated lockers using
your member pass. It’ll get
you in and out with your
items in minutes.
Through rain, sleet or snow,
one of L.L. Bean’s core
tenets is to get things to cus-
tomers quickly and accurate-
ly through exceptional logis-
tics and fulfillment. In some
cases, this means shipping
to a nearby store for pickup
- it could take several days
though, so the better bet is
to reserve or order online
and pickup in-store. Sim-
ply go to the store’s pickup
counter to grab your goods.

24 O M N I C H A N N E L L E A D E R S H I P R E P O R T O M N I C H A N N E L L E A D E R S H I P R E P O R T  25
Trend
Watch
Sustainability
Shoppers are more mindful now than
ever before, especially the millennial
constituency.
They have an unwavering expectation that the brands
they buy align with their personal values.
In an effort to stay relevant, leading brands are taking
the pledge of sustainability. It makes sense: the apparel
industry is the second largest environmental polluter in
the world.
Currently, there are 131 certified B Corp fashion and
apparel companies. Brands like Allbirds, Athleta, Cotopaxi,
Eileen Fisher and Patagonia have all committed to making
environmentally-conscious decisions each step in their
retail chain. Today, more than half of their products are
produced from sustainable sources.
Many other brands have been vocal about their
sustainability goals, too. Everlane’s Saitex denim
factory recycles 98% of its water. Zara pledged to
make its collections from 100% sustainable fabrics by
2025. Abercrombie & Fitch Co., Fast Retailing Co., and
Tapestry, Inc. are U.N. Global Compact participants - their
operations align with the organization’s 10 universal
principles for human rights, labor, environment and anti-
corruption.
The Retail Industry Leaders Association (RILA) found
nearly 68 million Americans base purchasing decisions
on their values. They will also spend up to 20% more
on environmentally-sound products. What’s your
sustainability strategy?
26 O M N I C H A N N E L L E A D E R S H I P R E P O R T
Experiential Retail
Is experience per square foot the
new sales per square foot? For many
retailers, it seems so.
It’s hard to capture consumer attention these days, which
is why brands are merging entertainment and technology
with traditional shopping. After all, they need to set their
stores apart from online - immersive and interactive
experiences are such ways to do it.
Most stores today aren’t actually experiential, but there
are some retailers doing it well. When Roots put its, yup,
roots down in Boston, it introduced its gallery concept.
Each section of the store tells a part of the brand’s
story based on a single product. In New York, L’Occitane
en Provence’s Fifth Avenue store (the Retail Design
Institute’s 2018 Store of the Year), features bike rides and
hot air balloons. They’re virtual, but where else in NYC can
you transport yourself to the south of France?
And of course, the Nike House of Innovation 100. The
top retailer in our report has brought the innovation
of its sneakers and apparel to life in the form of
68,000-square-feet of store. As Amazon trains us
to shop from our couches, how will brick-and-mortar
convince us to get up and experience something real?
Subscriptions
Consumers have long appreciated
subscriptions - just look at Netflix,
Spotify and Blue Apron.
McKinsey & Company found the subscription economy
has grown by more than 100 percent a year over the
past five years. Why? Well, for one consumers are fickle
with their time and money - subscriptions are a more
controlled way of shopping. There’s also the element
of surprise and delight, which is a win for the customer
(discovery) and the brand (satisfaction). Finally, exclusivity
- giving shoppers something of value that everyone else
doesn't have.
American Eagle launched a subscription service in the
form of rentals. “Style Drop” is a no-commitment option
for fresh picks delivered directly to your door. Ann Taylor
Inc.’s brands have similar programs, called “Infinite Style”
and “Infinitely LOFT,” where you can enjoy a size-inclusive
rotating wardrobe. The URBN brands have Nuuly - a new
service whereby you pay just $88 for six items a month.
This market is estimated to reach $1.9 billion in global
value by 2023 per Allied Market Research. While cancel
rates are high (up to 40% of subscribers ultimately call it
quits) and the reverse logistics are complex, there’s a big
recurring revenue opportunity here. Are subscriptions
the real deal?
O M N I C H A N N E L
New Store Formats
Brands are feeling the squeeze of
evolving customer expectations
and increased competition.
While stores have closed in the last few years as a
result, it’s a reflection of the individual retailer and
not retail overall. Look at all the digital native brands
expanding into brick-and-mortar. It plays an important
role, but physical retail is not one-size-fit all.
Lululemon is opening four different types of stores -
from pop-up to large format experiential retail centers.
Foot Locker, one of Nike’s most important wholesalers,
is rolling out stores that are four times the size of
existing locations. Abercrombie & Fitch Co. is taking the
opposite approach. Its closing its flagship shops and
focusing on smaller stores. And then you have Glossier,
adding flagships to its fleet but also experimenting with
temporary stores.
What this tells us is that there is no longer a specific
formula to brick-and-mortar. It’s clear physical retail still
matters, but it's up to the individual retailer to make the
most of its real estate - be it 10,000- or 50,000-square-
feet. Will competitive advantage be had in a flagship or
a showroom? It’s ultimately a brand-level decision.
L E A D E R S H I P R E P O R T 27
 Going Way Back In Time

10 %
04 Engagement

Consumers on the receiving end of personalization believe it to positively impact

their purchasing decisions. Yet, personalization wouldn’t be possible without
a complete picture of shoppers. The canvas is only partially painted - 79% of
associates can see in-store purchase history, but only 58% can see online purchase
of associates can
history. This is because, surprisingly, many brands still operate disparate systems
that don’t open up access to all past purchases.
access an online
shopping cart in-store

Data,
technology
What’s In Your Cart?
There’s no online or offline. At least not in the eyes of modern consumers who start
their buying journey in one place and expect to finish it in another. But only 10%
of store associates can see what’s in a shopper’s online cart. Often, to access this
58 %
of associates can
and the information they request the customer look it up themselves on the website. Not see online purchase
history in-store
human touch. exactly seamless shopping.

27
Help Me Help You
%
Consumer
Customer data is a slippery slope, but it is what enables a store associate to
clientele at a high level. To build a rapport with shoppers, you need more than an

Engagement
email address. Most brands are reduced to just that, though — only 27% of store
ANALYSIS associates are able to add notes to a shopper’s profile with a POS system. That of associates can
means they are pretty limited in their ability to help. add notes to a
shopper’s profile
Retail brands are putting genuine
effort into being customer-first.
The changing nature of physical
Every twist and turn in the customer journey is an opportunity
retail is helping in this regard —
to engage shoppers. To engage means to interest, to

25
with more technology and unique
Don’t Leave ‘Em Hanging
%
captivate, to draw attention - and for the retailers doing it right,
store selling points, associates
it means to win. Because at the end of the day, it's the highly
can really be of assistance to The associate to customer relationship isn’t within four walls anymore. Led by
engaged customers who buy more, promote your brand and
shoppers. We’re seeing mobile millennials, consumers prefer text messaging over other forms of communication.
stick around. This fourth section explores the ways in which
It’s why mobile messaging is starting to infiltrate business as a means of marketing
brands leverage data, technology and the human touch to enable this. At the same time,
and customer engagement. Today, a quarter of store associates are able to contact of associates can
engage customers before, during and after a purchase. channel fragmentation still exists.
customers outside the store to share information on new arrivals and events, to contact customers
Eliminating the disconnect will
confirm appointments, and more. outside the store
be key to a frictionless customer
experience.

28 O M N I C H A N N E L L E A D E R S H I P R E P O R T O M N I C H A N N E L L E A D E R S H I P R E P O R T  29
Consumer
1 . E V E RLA N E

Engagement
2 . T H O M B RO W N E

3 . T IF F A N Y & C O . Thom Browne designs in-store

Leaders
4 . F E N D I
experiences that woo you from the
moment you walk through the door.
5 . E RM E N E G ILD O Z E G N A

From their mobile devices store associates are able to access a

customer’s past purchase history, preferred items and browsing
behavior, which helps them deliver a top-notch luxury experience
that matches the brand’s aesthetic.

Everlane goes the extra mile to

engage its shoppers. In fact, the sole
metric the brand tracks on social
media is consumer engagement.

This engagement extends to the store environment as Tiffany & Co. shines brightly
well, where Everlane hosts physical events to promote by combining digital-savvy
in-person interaction and open studios to talk with and white glove customer
Everlaners. As a result, they have access to robust service. It’s store staff use
customer info and are able to add personal notes to mobile to augment their
clienteling efforts. If you
shopper profiles based on their one-to-one relationships.
have an upcoming birthday,
anniversary or wedding, they
want to know it; they want
Tiffany to be part of life’s
biggest celebrations. They
take notes and save items
to your account for later so
you can buy the brand for
all milestone events (or so
someone can gift you!)
Fendi wraps store visitors
with a warm feeling and
wants everyone to leave
satisfied whether you
buy something or not. If
you’re not quite ready to
commit to a purchase, its
store associates offer to
take down your personal
information so they can stay
in touch. Sure enough, you’ll
get an email with product
details on your favorite bag
- they’ll also share info on
that wallet you made a side
comment about, in case it’s
also on your wish list.
Ermenegildo Zegna’s
store associates tailor your
experience efficiently and
personably - and they’ll stick
by your side with an iPad
in hand to make sure your
shopping trip is nothing
short of memorable. This
level of service is at the core
of the brand’s DNA, and it is
powered by customer data
from different channels as
well as marketing.

30 O M N I C H A N N E L L E A D E R S H I P R E P O R T O M N I C H A N N E L L E A D E R S H I P R E P O R T  31
 Make Way For Mobile

68 %
05 Mobility

Retail IT leaders agree mobile makes their brands more competitive. It’s why 68%
of them are providing associates with mobile devices on the store floor, be it a
smartphone or tablet. This is compared to 60% last year, showing gradual growth of associates use
in adoption and an increased understanding about how mobile makes associates a mobile or tablet
more productive and stores more profitable. device

The
heartbeat
Mobile Inventory Management
More than half (51%) of store associates can see local and organization-wide stock
on a mobile device. Sometimes the devices are ruggedized tablets or smartphones
and sometimes they’re consumer devices; regardless, inventory lookup is the most
51 %
of associates can
of a brand. common use of mobile in-store by frontline staff. see inventory via
mobile

Associate
Associates Untethered
Mobile devices are small enough for associates to carry around the store floor, and
46 %
Mobility
46% do. With constant access to a device, they can help customers with everything
ANALYSIS on the fly, from returns to inventory. For the associates that don’t have a device of associates carry
on their person, they have to leave the customer’s side during crucial shopping their mobile devices
interactions. on the floor
We’ve watched mobile make its
way into retail for years now -
from consumer apps to display
Consumers are inseparable from their mobile devices. They
devices to mPOS. Even so, mobile
believe their personal mobility should be matched by every
is still the Achilles heel for many

33
business they come into contact with. In retail, this means

%
brands. Omnichannel means
having a connected store associate with endless intelligence
always connected, so there is Check, Check Me Out
in order to deliver a top-notch customer experience.
no true omnichannel without According to Adyen and 451 Research, retailers lose nearly $1.1 billion in potential
Associates are the heartbeats of a brand - they have a
larger impact on revenue when they use mobile to execute mobility. An improvement to sales due to long lines. Mobile checkout is therefore a brand and a customer’s
omnichannel retail. This final section looks at just that. associate mobility, i.e. putting dream. 33% of brands offer mobile checkout, although most are keeping their of associates can
real-time customer, order and capabilities basic - only 19% can place an endless aisle order and even fewer (14%) complete checkout
inventory information into their can complete a mixed cart transaction. with a mobile device
hands, would help raise scores for
a number of brands in the report.

32 O M N I C H A N N E L L E A D E R S H I P R E P O R T O M N I C H A N N E L L E A D E R S H I P R E P O R T 3 3
Associate
1 . T IF F A N Y & C O .

Theory hypothesized its stores would

Mobility
2 . T H E O RY
feel more expansive and airy without a
3 . S UIT S UPP LY
traditional cash wrap. It was right.

Leaders
4 . N IKE
Having store associates that can do everything from an iPad mini
5 . LO F T gives shoppers more opportunity to interact with the brand’s
modern essentials and minimalistic store setup. The associates
are always nearby and able to assist though, offering mobile
checkout with flexible payment options like Apple Pay.

Tiffany & Co. maximizes its luster

by using every square inch of its
stores as selling space.

It does so by giving all store associates a tablet that they Suitsupply uses mobile to
can use to help customers and personalize the shopping ensure customer data is
experience. From the jewelry counter, they can look up never in, well, short supply.
product inventory, order items from another store and It’s stylists have quick access
complete your checkout. It’s a no fuss, luxury experience. to shoppers’ information like
suit and shirt measurements
from their iPad. They also
use them to show you how
items look on others, giving
more personality to the
garments and revealing
how they wear in real life.
When it comes to checkout,
associates use iPod to make
the process pain-free.
Nike equips store associates
for the big game with iPad
and iPhone. The devices fuel
their store experience in the
same way the Nike App does
the customer. If you can’t
find what you’re looking for,
they can use their phone
to look up all the products
available to try on or buy.
They use mobile to ensure
the customer has a winning
experience, every time.
LOFT elevates their store
associates with phones
that operate as a point-
of-sale. This is perfect for
mobile-savvy millennials,
who already interact with
the brand frequently on
mobile (we’re looking at you,
LOFT Mobile Insiders). The
real-time view into product,
content and community - for
associates and customers
- is what drives the brand’s
ability to provide a more
personalized experience.

34 O M N I C H A N N E L L E A D E R S H I P R E P O R T O M N I C H A N N E L L E A D E R S H I P R E P O R T 3 5
Conclusion
We will never not see change in the
retail industry. While it would be
easier if they weren’t, consumers are
a moving target; always shifting based
on various technology breakthroughs.
Omnichannel isn’t a wait and see game,
though - today’s retailers need to be
proactive in evolving their organizations
at the foundational level. But it isn’t
good enough to take steps that merely
simulate the omni experience. This is
clear enough by the delta between the
leaders and laggards in the report. The
leaders have implemented the core
building blocks and are homing in on
exactly what their customers want and
Your Results
need. Even more, they’re taking action
to be predictive so they can answer the Want to know how your
call of tomorrow’s shoppers.
brand performed in the
So, what does tomorrow look like? We
2019-2020 Omnichannel
Overall, it’s Leadership Report?
suspect in the next report we’ll see
mobility scores on the rise. Consumers
important to
are not laying off their smartphones. In remember omnichannel We can produce a custom
research brief for you, including:
fact, they’re relying on them for just is not one-size-fits-all.
about every utility and before we know
• Your score among the
it they won’t need anything else to go The way to the top is with individual
200+ brands researched
about their day-to-day. The same is innovation and experimentation. Not
true of store associates. Their will to all retailers have the cash flow of Nike • An individual analysis of
omnichannel capabilities
use mobile is there. Time for brands to to make their transformation a reality.
institute the way. This is why we believe But what every brand can do is set • A competitive analysis of
brands in your segment
digital native brands will put pressure goals and be willing to experiment.
on traditional retailers in the not-so- The omnichannel leaders in this report • A breakdown of your technology
and mobile hits and misses
distant future. They may not have have taken chances and embraced
the most sophisticated technology change — whether with store format • Anecdotal commentary based
on our in-store excursions
today, but they do have the makings or technology or marketing. Now is
of a connected retail environment — a the time for every brand to make
reason to not underestimate them, but omnichannel its opportunity. Request a custom
rather learn from them. report today by visiting:

www.newstore.com/myscore

36 O M N I C H A N N E L L E A D E R S H I P R E P O R T
Omnichannel Leadership Report

NewStore operates a platform for

retailers to run their stores on iPhone.

It provides Omnichannel-as-a-Service with the only integrated cloud OMS

and mobile POS. Intuitive store associate apps allow retailers to offer
seamless shopping experiences through endless aisle, mobile checkout,
store fulfillment, real-time inventory and clienteling.

With an API-first architecture and an expansive ecosystem of partners,

retailers can deploy fast and flexible omnichannel with ease. Brands that run
on the NewStore platform include Decathlon, Outdoor Voices, UNTUCKit and
more.

NewStore was founded by Stephan Schambach, who pioneered e-commerce

at Demandware (now Salesforce Commerce Cloud). The company has offices
in Berlin, Boston and New York.

Learn more at www.newstore.com

DISCLAIMER
This report is the result of research done by NewStore, Inc. and reflects NewStore’s analysis and assessments of the subject matter. NewStore does not represent or warrant
that the use of the guidance in this report will lead to any particular outcome or result. Additionally, this report is not intended to provide any legal, taxation or accountancy advice.

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