Omnichannel a winning strategy for department stores
Although omnichannel sales are important to the retail industry, achieving the organization-wide integration and communication necessary for it requires a considerable degree of cooperation throughout all levels of the business. This can be done with versatile retail software that can follow inventory and the point of sale regardless of whether an item is sold in person or online.
The actual advantages of omnichannel are not always as visible, however, and even merchants who are ready to make the move may doubt the decision. As a relatively recent trend, practical results may not be available, at least not among all types of retail.
Achieving omnichannel integration
Macy's recent success with the omnichannel trend may shed some light on its effectiveness. According to The Wall Street Journal, the retailer has been experiencing notable sales growth that is strongly attributed to its omnichannel strategy. Through its "My Macy's" initiative, it has integrated Internet, in-store and warehouse operations into a seamless unit that can provide customers with wanted items in a swift period of time. Using its approach, Macy's believes it could be a leader in same-day delivery. All told, the company's fourth-quarter profits were up 7 percent year-over-year, with online, same-store sales proving a considerable part of its gains.
"We continue to see significant upside opportunity ahead in those strategies that have worked so well since we reorganized the company in 2009," CEO Terry Lundgren told the source.
Standing out from other retailers
Other companies operating in a similar retail market have not seen the boost that Macy's has. MSN noted that Sears has run into trouble of late, suggesting that Macy's management plays strongly into its recent accomplishments.
However, omnichannel may not be the sole source of its success. The Wall Street Journal also noted that Macy's has focused on the millennial market, which could be a key part of its achievements.
As more businesses grow to understand the intricacies and obstacles of omnichannel retail and how to overcome them, providing the service will be even more critical for merchants. For now, those that can bypass the challenges related to the strategy have the potential to lead in their respective markets. Doing this will require retail management software that covers all aspects of a company's sales and inventory, regardless of whether shoppers are using online channels, in-store delivery or the other options open to them.
