As digital retailing evolves, it is quickly morphing into something so different that it requires a new name: Omnichannel retailing. The name reflects the fact that retailers will be able to interact with customers through countless channels—websites, physical stores, kiosks, direct mail and catalogues, call centres, social media, mobile devices, gaming consoles, televisions, networked appliances, home services and more. Retailers must bear in mind that consumers don't think in terms of channels but brands, the brand promise has to be consistent everywhere. Unless conventional merchants adopt an entirely new perspective - one that allows them to integrate disparate channels into a single, seamless, Omnichannel experience - they are likely to be swept away.

Improved search tools, access to user reviews, instant price comparisons, active social networks and more are fundamentally changing shopping. Computers, smartphones and tablets provide access to endless sources of information that help consumers decide what to buy and where to buy it. And retailers increasingly rely on evolving technologies such as integrated inventory software, radio frequency identification (RFID) tags and quick response (QR) codes to better manage inventory and offer new services.

But technology alone is not innovation. Too many retailers are spending on technology without transforming the customer experience—buying iPads for their sales associates, for example, without a vision of how that will enable them to win in an omni-channel world. And the pace of change is increasing; retailers’ choices on how to deploy technology across channels and throughout their supply chains are becoming more complex.

Customers are out in front of this omni-channel revolution. By 2014 almost every mobile phone in the United States will be a smartphone connected to the internet, and an estimated 40% of Americans will use tablets such as the iPad. If you doubt whether consumers are ready for technology-driven retail solutions, find a “dumb” video display in any public location and look for fingerprints on the screen—evidence that people expected it to be an interactive touchscreen experience.

A successful omnichannel strategy should not only guarantee a retailer’s survival—no small matter in today’s environment. It should deliver the kind of revolution in customer expectations and experiences that comes along every 50 years or so. Retailers will find that the digital and physical arenas complement instead of compete with each other, thereby increasing sales and lowering costs. Ultimately, we are likely to see more new ideas being implemented as customers and employees propose innovations of their own. In today’s environment, information and ideas can flow freely and retailers that learn to take advantage of both will be well positioned for success.

IBM ran a great session about data – did you know, 90% of all global data was generated in the last two years and that 80% of all data is completely unstructured? One thing I found myself asking was – where does your business see itself in managing data? Is it historical, real-time or predictive and how relevant is the data you collect?
An intriguing survey grabbed my attention on the second day of the show; of 28,500 people from 15 different countries, 76% of the respondents said they would welcome more communication from retailers – this has got to come as a surprise to businesses. The survey also found that customers are willing to share information about themselves, with three quarters saying they would divulge media usage, 73% willing to tell demographic information and 61% fine with sharing identifying information such as a name and an address.

Consumers between the ages of 18 and 25 would rather shop in brick-and-mortar stores for clothing and shoes, according to a study, although two thirds said they head online to do product research and price comparisons first – a fact that has been evident almost since the beginning of ecommerce. So, whilst social media plays a role in brand awareness, 88% said they opt not to shop on Facebook or Twitter.

With the growing number of selling channels, product choices and unprecedented access to information, retailers are challenged to keep pace with changing consumer buying behaviours. The omni-channel retail environment is making it more difficult for companies to meet increasing service-level expectations while minimising inventory costs and maximising margins. Solving these challenges was a huge focus of many vendors in the Expo, and is certainly the focus of our core campaigns for 2012 as a leading Microsoft Dynamics AX for 2012 Retail partner which launches virtually on 1st February this year.

Tom Allason, founder of Shutl

1. What is the greatest opportunity for your business?
Becoming the delivery standard. I would like to see Shutl influencing consumer buying behavior globally with shoppers gravitating towards retailers that offer ‘shutl’ and away from those that don’t.

2. What is the biggest challenge to your business?
Integration with retailers because while the ROI for Shutl makes offering it a no-brainer commercially (increased customers, conversion and profits) the implementation is not simple. It involves integration with the web front-end, stock management systems, changes to store processes and particularly in the case of a large retailer it will cross many different areas of responsibility. Our challenge is getting through to the right person within a retailer who has the vision to understand the impact of the proposition on their customers and who also values the commercial benefits of this impact over the work that is required to implement Shutl properly. We usually find ourselves competing for space in a retailer’s development roadmap with a number of other projects which while not having the same impact on a retailer’s business are much simpler to implement.

3. With the benefit of hindsight what would you have done differently so far?
I’d have taken Shutl live much sooner - albeit with a far less refined product. In some ways we spent too much time ensuring that we went live with the best possible service. But had we come to market six months earlier - albeit with a far more basic product - we would have given ourselves another Christmas and we would be six months closer to world domination.

4. What is the future of the physical store?
As this market becomes even more competitive retailers are going to work even harder at satisfying shoppers’ needs as well as their shareholders demands. In my mind this means giving customers what they want when and where they want it, which will necessitate changes across all of a retailer’s business and not just their stores.  This means having all channels (web, store, phone, mobile, social etcetera) equally good at helping customers discover/buy/return products. For me this means physical stores will need to be much smarter (at knowing who customers are and where stock is) and also much leaner (selling more goods without buying more by being more efficient with distribution of stock). This will mean smaller stock positions in each store. Stores will also need to be more flexible at being able to fulfill a lot of the back office functions like fulfillment.

5. What will the high street look like in a decade?
Although the stores themselves will evolve rapidly in response to customers’ expectations increasing as a result of what the retail innovators are doing (expectations only go 1 way), the high-street will probably not change too much.  There will always be the experiential and social part of shopping that cannot be satisfied digitally.

6. Will mobile devices be the primary sales channel in the future?
I don’t think there will be a primary sales channel in the future. There will just be customers and retailers and different means of satisfying customer needs.

7. What other retail business do you admire?
Apple for transforming what people thought was possible through retail. John Lewis for establishing a culture and values that are meaningful and evident in everything they do. And also Amazon: for not being afraid of anything, putting retailers and manufacturers onto the back foot, and for forcing innovation.

8. If you hadn't been a retailer what would you have liked to do? [rather silly question for a non-retailer – ed]
Found a company that could enable immediate delivery of online purchases.

9. What marks out of 10 do you give yourself so far for achievement?
A 6. By most measures 2011 was a good year as we took our service live across multiple (very different) major retailers and established that our value proposition makes sense to shoppers, retailers, couriers and our shareholders. We have also demonstrated that our service can operate beyond London. However, we would have liked to have done all of the above much quicker. I think there is room for a 50+% improvement this year and so I’m aiming for 9+.

When on line retail began at the end of the 90s, predictions were that the high street would be deserted, but it isn’t. And even though stats say online shopping spend is growing faster than on the high street, the fact that the high street still exists is surely positive in itself. While the internet has become the obvious place for most people to order books and gadgets, most food and fashion shopping still takes place in-store, with customers preferring to see their goods before they buy.

The cost of running retail premises are continuing to increase, with Retailers spending £14.5 billion in rent every year and sadly, one in seven UK shops lies empty – and this is expected to rise in 2012. Online retail bears its own running costs, though minimal in comparison, but as ecommerce growth continues, stores may be forced to close in favour of this more financially viable option.

High street shopping has been pin-pointed as an important social activity, which can only be seen as positive. But the question still remains as to whether customers are now using stores merely as a means to browse their product before they purchase online or as a means of picking up or returning items. As a sole online store, Amazon released a US app last year which enabled the customer to scan in-store items to determine how much cheaper they could get the same product online – this may just be mirroring what the customer was already doing themselves.

Mary Portas’ recommendations to the government have highlighted some worthy points, but will they ultimately make a difference? Time will be the teller, and 2012 could be the turning point for retail as we know it today.

*Research house - Verdict

1. What is the greatest opportunity for your business?

CRM, and the continuing journey towards being a truly integrated cross channel retailer.  White Stuff now has the technology to create a single view of our customers across all channels, and this will enable all our channels to deliver even better, more relevant and personal customer experience s and communications to our lovely customers.

2. What is the biggest challenge to your business?

Too much to do, and never enough time to do it all!  At the same time, the economy and consumer confidence is slowing growth down so existing resources get a little more stretched. But we have great people who really want to be different, make a difference and make the world a little happier!

3. With the benefit of hindsight what would you have done differently so far?

I would have liked to have accelerated and developed our International web proposition sooner so we could have built a bigger international customer database and be selling more overseas online by now.

4. What is the future of the physical store?

A happy one! Shops are the major element in our cross channel strategy and are very much the physical representation of our brand and they consistently deliver a really super shopping experience. We have 80 shops and plan to open more in key UK customer locations. We are also just opening our first two International shops in Northern Europe. With our ‘4 new ways to shop’ we expect more existing and new customers to browse and research online but buy in-store, or choose the new Click and Collect option in addition to buying online or via the phone. I can see the leading pure plays opening shops or having a physical retail brand presence in the future too.

5. What will the high street look like in a decade?

White Stuff is all about ‘local shops for local people’ and we love to be an integral part of our local community, and deliver remarkable personal shopping experiences and service.  I think the high street will need to create more retail theatre and brand  ‘showcases’  to deliver exciting, original, differentiated and entertaining customer experiences. The key malls will be the major regional or national shopping ‘entertainment and leisure destinations’ for groups and crowds to gather on a grand scale and be fully wired to exploit all the new potential with emerging mobile and social technology, tools and media.

6. Will mobile devices be the primary sales channel in the future?

I can see shop staff using mobile devices and social commerce more as part of the in-store brand and customer experience.  Another benefit of mobile devices in shops will be to gather retail customer opinions and feedback to enhance user-generated content on the web and via social networks.

7. What other retail business do you admire?

I admire ASOS, Net- a-Porter and Zappos for making a step change in creating new customer shopping experiences, service, choice and delivery over the last decade. I also love the retail ‘theatre’, entertainment, sheer scale and brand choice of shopping in Harrods, and the consistently good service and value at John Lewis.

8. What marks out of 10 do you give yourself so far for achievement?

You should ask my team that one as I always want to do more, faster, quicker, and my ‘to do’ list is never completed! There’s always so much to do, and loads of new stuff – it could never be a perfect score. It’s a bit like painting the Golden Gate Bridge – just as you think you’re reaching the end, there’s a new bit to start over again, and you never finish it.  (However, if pushed, I’d be happy to say probably 9/10 for fun and working with great people along the way).

9. Who would you place in the Top 30 Multi-channel/e-commerce Movers & Shakers?

The Top 30 features the great and the good of the industry! It’s inspiring to see so many of the names I respect and admire so much like Nick Robertson, Natalie Massenet, Scott Weavers-Wright, Robin Terrell, Laura Wade-Gery, Peter Fitzgerald, Clare Gilmartin, Miriam Lahage up there with the best!

10. If you hadn't been a retailer what would you have liked to do?

I originally wanted to be a vet, but knowing what I know now, I think I’d liked to have been a business psychologist!

The high street store of the future will have to keep pace with on line by implementing the latest technologies as a way of enticing consumers back in-store, not just so they buy there and then but so they continue the positive experience they have of the retailer that they have almost certainly started elsewhere, on the retailer’s web site or through social media. And the store will have to replicate and complement the value added services available to online customers.

Entrepreneur Theo Paphitis is more than willing to embrace the changing retail dynamic – which he described in a recent interview as the ‘fastest in living history’ – and is incorporating a great deal of technology for use in his latest venture, a lingerie brand that trades both online and on the high street.

To keep up with the sophisticated online world, the ‘Dragon’ has implemented a large computer screen featuring the brand’s website as its main window display, along with finely tuned video cameras throughout the store that enable him to oversee his operation at all times – to the point where he can read the labels off the clothes and see if they are on the right rack!

With this, and other Business Intelligence technology now available, retail entrepreneurs such as Paphitis can now manage promotions, alter point-of-sale screens, and even change the lighting, all from the luxury of their head office. By being able to respond ‘live’ to purchasing trends and having the ability to alter promotions during the day, the overall experience becomes much smarter and more customer-oriented.

All of this is vital to ensure consistent footfall in-store as ecommerce becomes increasingly popular and successful. Whilst other drivers can also be advantageous to stores – such as the addition of a click and collect service, for instance – it’s the incorporation of online tools into the shop floor environment, allowing for more intuitive and detailed analysis of what the customer is seeking, that will truly make the difference.

1. What is the greatest opportunity for your business?

Being a truly multi channel/ Omni channel retailer – and ensuring we create great channel experiences which customers interact with and between seamlessly.

2. What is the biggest challenge to your business?

There isn’t enough time – and customers’ expectations are continually shifting – and we hate letting them down in anyway, and time is of the essence and patience isn’t a quality of mine

3. With the benefit of hindsight what would you have done differently so far?

Gone faster and hired faster and more. And stopped to thank all the people in our brands and in group to thank them for being so great more frequently!

4. What is the future of the physical store?

The future is bright – the future is multi channel – so you need them – but to work in a different way. To be a shop, to be a place to hold stock, to be a brand showcase and to give a great experience – it’s now more than just a store.

5. What will the high street look like in a decade?

In my view the cities will be dominated by big brands, new brands, on line brands who were brave and went off line too, international brands, and the High Street will be an exciting experiential based social experience. It will be technology enabled with amazing consumer experiences. The smaller towns will be authentic local propositions with a sense of community and modern tradition.

6. Will mobile devices be the primary sales channel in the future?

No. There will be no primary sales channel as customers use many channels with one brand before they transact in the one they choose. So it will be important, as the population is mobile, but you will need to win the hearts and minds of consumers in every channel – just to close the sale!

7. What other retail business do you admire?

The obvious one is Apple, but I love John Lewis and Starbucks

8. If you hadn't been a retailer what would you have liked to do?

My career destination was to be a lawyer – I studied Law – however thankfully a lucky break brought me into retail. When I look back and wonder what else I would have liked to have done – I would love to have invented something.

9. What marks out of 10 do you give yourself so far for achievement?

I'm my worst critic. I look at the non-conversion rates of websites not conversation, I look at how many hours we are late on things not days. So I have huge moments of feeling I haven’t achieved anything. Thankfully I have an amazing boss who points out my achievements to me regularly, which I often dismiss as day job. Besides even those things, my team and all the people who work on multi channel achieve them not me. So my score is 1 out of 10 of all I want to achieve.

10. Who would you place in the Top 30 Multi-channel/e-commerce Movers & Shakers?

It is an esteemed list and I was flattered to be included – the 29 people on there are all people I admire – so no new entry from me, that’s up to the judges.

This video humorously demonstrates how some consumers view the e-commerce platform – frustrating and time consuming.

But will in-store processes go in the same direction? With e-commerce platforms constantly evolving and improving, will it actually be the in-store process that drives customers crazy as retailers look to identify and interact with them. As their thirst for consumer knowledge grows, could they introduce e-commerce logic at the store point of sale.

From a consumer point of view, buying online provides you with all the tools and information you need to make a successful purchase including fast comparisons, stock check and deals and offers. Once you have shopped online, you are instantly recognisable to the retailer, perhaps making the purchase route much more straight forward as time goes on. How will retailers provide this level of intimacy in store without slowing down the buying process or annoying the customer?

The talk is all about new types of loyalty schemes, in store Wi-Fi linking directly to customers’ smartphones, on line promotions, and kiosks that enable customer log in, but we’d love to hear your thoughts and opinions so please post any comments below.

Another report by IMRG notes that sales via mobile have jumped from 0.4% to 3.3% from the start of 2010 to Q2 2011/12, and that checkout abandonment rates also dropped during this period – from an average of 37% to 32% - suggesting that consumers are becoming more confident and secure in shopping through this channel. However, basket abandonment rates still remain high, and nearly double that of checkout abandonment.

Today, m-commerce purchases already contribute £1.3 billion towards annual UK sales, but in ten years’ time, it is believed that this figure will sky-rocket to £19.3 billion – with shoppers becoming more and more likely to use their mobile phones and tablets over this time.

In the report, it was revealed that the most popular m-commerce purchase at present is food and grocery orders, which will tally to nearly £300m for supermarkets and grocers this current year. In-line with the anticipated growth, it is more than plausible that this figure will rise to £5 billion in the next decade.

Richard Lowe of Barclays Corporate noted: “M-commerce is still a relatively niche channel accounting for 0.5% of total retail spend. However, with little new shop space coming into play, the real growth opportunities lie on the virtual high street; and those retailers which are prepared to invest will be at a significant advantage to the competition”.

Barclays predicts that during the next five years m-commerce will grow by 55%, the fastest of any retail channel. This compares to expected growth of 8% for online sales and 1.6% for in-store sales. Mail order is expected to shrink by 1.2%. The growth of mobile sales will, in part, be driven by increases in smart phone penetration and technological improvements such as 4G and Near Field Communications. Total 2021 total retail sales are expected to be worth some £390 billion with m-commerce accounting for 4.9% of sales.

All of this underlines just how important the role of technology is, and with more and more consumers expected to utilise m-commerce to make their purchases, it is critical that retailers spend the time to focus on this channel to fully engage their customers and deliver a consistently strong brand across every aspect of their operation. The days of m-commerce being thought of as a novelty are seemingly in the past, and retailers now need to put as much thought into their offering in this area as they do in-store and online. Those that don’t may well get left behind and will miss out on this extremely profitable sales channel.

It also goes without saying that reliable technology is essential – customers are not as tolerant of downtime as they perhaps once were, so it’s vital to provide a consistent service that is available around the clock. With some retailers having up to 12% of their total traffic coming from mobile, it’s crucial that this channel is giving the attention it deserves.

K3 are an IMRG supplier member

Having the ability to add customer ratings and reviews onto a product page, for instance, can add significant value to any ecommerce procedure, bringing to life a community type environment that can be both useful and enjoyable for the consumer.

And retailers are becoming increasingly aware of this. A recent study conducted amongst Australia’s online retailers (by Forrester) notes that many businesses in the country are looking to bolster their online presence by upping their technology spend in the coming years. Replacing core ecommerce platforms, back office integration and technology is something that approximately 50% of those surveyed intend to do, many in the next two years.

With more complex and developed ecommerce platforms coming to the fore, it makes perfect sense for retailers to capitalise and stay ahead of their competition. However, it appears now - perhaps for the first time - that the value and importance of a strong ecommerce offering is being recognised; and that retailers are also realising how an effective web site can also assist with its overall brand consistency. The focus is now on scale, flexibility, development timeframes and cost versus value delivered. The vendors, but not all, are rising to the challenge to deliver:

1. Mobile commerce not just apps
2. Geo-location targeted content
3. User Generated Content tighter Social Media interaction
4. Customer Behavioural content and personalisation