Digiday Research: In-store pickup is still rare among retailers
As physical store retail experiences a resurgence, companies like Old Navy and Lowe’s are making the ability to pick up online purchases in-stores a key part of their long term strategies. But according to a survey of 42 retail executives the Digiday Retail Forum, most retailers haven’t deployed a “buy online pickup in store” strategy.
Companies with in-store pick up options are seeing strong consumer adoption, but 71 percent of the retailers polled by Digiday said that they aren’t using an in-store pickup strategy for online orders.
In-store purchase pickups are increasingly popular because they often lead to customers buying more while they’re there. The Home Depot, which has 47 percent its orders picked up, found that in-store pickups often lead to consumers interacting with in-store experts facilitating trust, and creating a deeper relationship with the store.
“Any time we launch something like [buy online pick up in store], a lot of teams are involved, and that requires a high level of coordination,” said Dave Albracht, director of business applications at the Home Depot. “We’ve spent years improving our online and in-store experiences and fine-tuning our supply chain network to make features like this possible.”
However companies capable of successfully enacting an in-store pickup strategy might be solely limited to big box retailers. Companies like Walmart, Home Depot and Target that have successful in-store pickup strategies have thousand of locations that make such tactics convenient for consumers.
According to Target, which has roughly 15 to 20 percent of its online orders retrieved in stores, 75 percent of U.S. consumers live within 10 miles of a Target retail location that enable the company to fill 95 percent of in-store pickup orders within an hour, according to the company.
Although online-only retailers obviously lack the capacity for in-store pick ups, some major retailers like TJ Maxx have chosen to eschew in-store pickup options, focusing instead on improving experiences within its physical retail locations.
Despite the success in-store pickup has generated companies, don’t expect retailers to suddenly offer it as an option. Facilitating in-store product pickup in a lengthy process that takes years of development and significant resource investment.
For more regional physical retailers and online retailers, that might simply mean they lack the resources and sophisticated processes to make such programs feasible. Having few locations and geographically dispersed consumers present obvious logistical challenges to in-store pickup strategies.
Even e-commerce giant Amazon is just beginning to operate manned physical retail outlets for purchase pickups. However the advantage that physical retailers had over Amazon, thousands of physical locations, is quickly diminishing. Currently, Amazon operates 2,800 locker locations where shoppers can get and return packages.
‘There isn’t a talent pipeline problem’: Confessions of a black advertising exec
In this edition of our Confessions series, in which we exchange anonymity for candor, we hear from a black media buyer who believes brands need to do more to support for Black Lives Matter and that agencies still haven't truly changed their hiring policies.
Member ExclusiveDigiday Research: Over half of brands say they handle marketing ‘mostly’ with internal resources
Digiday’s quarterly benchmarking survey found that about 83% of marketers are managing their marketing either mostly in-house or completely in-house. That's up from the 55% of marketers six months ago who said the same.
Member Exclusive‘Our job is to sell’: Marketers, moving past coronavirus response, return to selling products
Marketers need to get back to the job at hand: Keeping the squeaky wheels of capitalism turning.
SponsoredVideo advertisers are turning to format innovation to push beyond interruptive experiences
In a new video, experts from GumGum, The Martin Agency and Pinterest discuss the future of video advertising — and outline their vision for how video ads can be less disruptive.
‘We lose track of time’: How agencies are helping employees with mental health issues now
Agencies across the country are finding ways to help employees manage their mental health needs now due to the coronavirus pandemic.
The Bundesliga offers sponsors and broadcasters a sanitized glimpse as to how sports will restart
Viewing figures for Germany's top soccer league have soared. The league, clubs and sponsors are adapting with more digital marketing and interactive in-game features.