SOURCE: EKN Research

EKN Research

November 02, 2015 11:00 ET

Do the Costs of Omnichannel Store Initiatives Outweigh the Benefits?

3rd Annual Future of Stores EKN Research Study

RANDOLPH, NJ--(Marketwired - November 02, 2015) - The retail store has come full circle in the last 10 years. From being called obsolete with the onset of eCommerce to being hailed as the savior for brick & mortar omnichannel retailers as the key differentiator to the customer experience. Stores, in fact, continue to evolve as they move from being a single channel to a hub of retail that enables engagement for the omnichannel consumer. But, at what cost?

According to the 3rd Annual Future of Stores benchmark report by EKN Research, retailers should expect a 25% increase in labor hours and an average 2.4% increase in operations cost by adding such omnichannel initiatives as in-store fulfillment and online returns. However, the study also details key benefits that store-based omnichannel initiatives bring to areas such as attachment rate (+9.2%) and in-store pick up (12.5% sales lift).

"Retailers have found that integrating omnichannel strategies in the store are far more difficult than anticipated," said Sahir Anand, VP research and principal analyst, EKN. "However, the opportunity for brick & mortar retailers to enhance customer satisfaction, share of wallet and attachment rates with a better store experience is tremendous. The data uncovered in this study shows that real revenue gains are available to those retailers who adopt such strategies."

The report, underwritten by Hughes and Tyco, is based on a survey of more than 85 U.S.-based retailers and outlines key actionable recommendations for retailers to transform their stores. In addition, the report provides a link to the first ever Store Network Business Impact QuickScan - a quick, 2-minute quiz to help retailers assess how ready their store network is for the promise of a richer, more digital in-store experience. To access the QuickScan: http://quickscan.eknresearch.com/networkroi/

Click here to download the report. To learn more about how to participate in future EKN surveys or inquire about access to EKN's Advisory Council, please contact David Weinand at dweinand@edgellmail.com.

About EKN

EKN (www.eknresearch.com) is a research and content service that was built based on feedback and advice from retail executives. Part of the Edgell Communications family, EKN is a subscription-based portal that provides retailers with access to the site's powerful decision-support and data analysis tools, allowing them to leverage EKN's industry-leading database of original research, user-generated vendor indexes and market trends. EKN also lets members share insights and real-world experiences through ongoing peer forums, both virtual and in person.

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