From Omnichannel Onward

Over the past few years, omnichannel experiences have emerged as a pivotal element of retailers’ customer journey strategies. Though the majority of retail purchasing still happens at store registers, online buying options continue to grow in popularity — and it's happening quickly. Less than 25 years ago, online purchases accounted for under 1 percent of retail sales in the U.S. By 2009, that number had grown 4 percent. Today, just over 20 percent of retail purchases happen online, with experts projecting that number to grow to 23 percent by 2027.

Despite initial speculation that the rise of online sales could spell trouble for in-store retailers, the market has proven the strength of brick-and-mortar. A 2024 research report found that most shoppers would choose an in-person experience over a digital-only experience if they had to pick just one. However, given the option, three-quarters of shoppers prefer to engage with both online and in-person touchpoints to get the information they need.

Consumers now expect to be able to shop whenever and however they prefer, and they’re willing to walk away from retailers that don’t deliver. An IDC survey revealed that consumers are likely to choose a different retailer if their first option doesn’t offer multichannel returns (53 percent), online inventory insights (44 percent), and both online and in-store purchasing (43 percent).

So, how do you ensure a positive omnichannel experience for shoppers? It starts with insight.

Cloud-enabled, radio-frequency identification (RFID) programs are a critical track-and-trace tool for retailers hoping to gain visibility across their entire value chains. They're the beating heart of an effective and efficient omnichannel program as they allow retailers to see how, when and where products move from source to store (i.e., end-to-end inventory visibility), and throughout the sales floor. RFID systems paint a clear picture of performance both online and in aisles, helping retailers:

• Synchronize inventory and communicate with shoppers about what’s in stock.
• Develop trust through real-time order tracking.
• Address bottlenecks in processes.
• Keep same-day deliveries and alternative fulfilment operations such as buy online, pick up in-store (BOPIS) on track.

Many retailers are already catching on to the ways that RFID-enabled insights, artificial intelligence and computer vision can enhance track-and-trace capabilities, and how operational adjustments (e.g., source tagging) improve omnichannel operations. The majority (90 percent) of retailer respondents to a recent Sensormatic Solutions and VDC Research survey on retail technology spending and applications say they plan to use RFID in the next three years, and nearly half (46 percent) say they plan to deploy RFID-based track-and-trace systems in the next 12 months.

Insight is merely the first step; it’s what retailers do with it that will dictate the future. Retailers looking to get omnichannel right will likely need to invest in other changes to their models. For some, the next step may be source-tagging initiatives, which can help ensure that all items are tagged when they arrive to the store; for others, it may be new distribution and fulfillment models. What follows will depend on what the RFID system reveals, and so will everything that comes after.

That’s the key to attaining omnichannel excellence: letting data lead. Rather than scrambling to implement the latest technologies, retailers should work to identify the most compelling elements of in-store and online shopping so they can put them back together in a way that makes sense for modern shoppers. Luckily, today’s technology is up to the task of helping retailers create it.

Christa Anz is the global leader of marketing at Sensormatic Solutions, a provider of retail systems including RFID, EAS, anti-theft tags and labels, detachers, inventory management and retail traffic solutions.