For many years now the dotcom side of the multi-channel retailer house has been treated like a red-headed stepchild. Minimal budget, little focus, no respect.
In 2009 we are at an inflection point.
With a brutal economic environment, a wave of soaring gas prices and ongoing consumer uneasiness all weighing heavily on the bricks and mortar stores, something had to give. Stores have been closing. Retail chains have been filing for bankruptcy. Retailers have been scrambling. Even last night I watched the six o'clock news talk to Starbucks CEO, Howard Schultz as he said "We thought we were recession-proof, but we're not."
Among all this doom and gloom there is a shining star and that star is eCommerce.
Online retail has been doing fine through this holiday season. Channel Intelligence has seen year-over-year sales rise over 15% from what we saw in 2007. Sales are up. Orders are up. Average order value is up. Black Friday sales were up 40% over 2007. People are going online and they are buying.
Discounts, deals and promotions are everywhere enticing consumers to buy. Every Monday is Cyber Monday. Every Friday is Black Friday. Free Shipping. Buy one, get another at half price. These are not sporadic promotions. We see them happening every hour of every day as retailers work to drive online sales.
For multi-channel retailers however, it doesn't end with the online promotion.
Now the realization that the dotcom can drive in-store sales seems to be taking hold. Buy online, pick up in store or "BOPIS" as I like to call it is becoming more than just nice-to-have. It is becoming a must-have. Same price in store as online is a leading message for Circuit City. People are researching online and buying locally. With money being tight in this economy you can't just drive all around town hoping to find the things you want to buy. Retailers have tight inventories this year so they may not have things in stock. People are planning. They're making lists. They're using mobile phones and GPS units to find what they want. They're using the Internet to ensure they are getting a good price, buying the right brand and they know where to go to get it.
2009 is the year that eCommerce comes of age. It is not an after-thought. It is the leading strategy for any successful multi-channel retailer. The dotcom is no longer just another store, it is the store that drives sales to the other stores.
