Retailers are omnichanneling
More and more retailers are increasingly employing the so-called omnichannel strategy, utilizing modern technology means such as voice orders, simulators and chatbots.
The use of the internet in shopping is now much more than just looking for brick-and-mortar stores; it involves providing a complete shopping experience and range of services to consumers, whether they make their purchases from the physical or the online store. That strategy can range from trying on clothes and shoes in simulators to receiving personalized offers the moment the customer enters the physical store, and from suggesting purchases based on profile and personal style, to the simple, but hugely important and environmentally friendly issue of electronic invoices simply by using a cellphone.
Why are all these needed? Firstly, with the pandemic and technological avalanche modern consumers are much better informed and more demanding. Second, because the new generations of consumers not only consider all screens to be touch screens, but that the cellphone can do almost anything, either by pressing buttons or simply by voice commands. Thirdly, because it is estimated that in 2026, one in four retail sales will be made online, a percentage expected to reach 95% in 2040.
The question is what happens now, in 2023, with retail and consumer habits having been affected by the lockdowns as well as the inflationary crisis. Last year in Greece the rate of those who made at least one purchase online increased by 10 percentage points, from 58% in 2021 to 68% in 2022. In addition, in the first half of 2022, average spending on online purchases increased to 869 euros from €806 euros in 2021. At the same time, the normal reopening of physical stores also led to a significant increase in the turnover of conventional retail.
What appears to be prevailing in 2023 is a balance between the two forms of retail, complementing each other. According to Nielsen IQ data, e-commerce grew 8.3% globally last year, from 16.2% in 2021. Yet omnichannel sales, resulting from the combination of online and of physical stores, outperformed, rising 9.5% in the US.
