Retailers Have a Long Way to Go to Deliver Seamless Shopping

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Retailers Have a Long Way to Go to Deliver Seamless Shopping

03/03/2016
The rise of omnichannel retailing and the age of customer-centric retailing have led retailers to transform their business models towards a more integrated, seamless experience for consumers, regardless which channel they choose to shop. However, omnichannel success means doing so profitably, no small feat for retailers today.
 
The third annual PwC/JDA survey of more than 300 retailers finds that only 18% have eliminated operational silos and are delivering seamless omnichannel shopping experiences for their customers. This means that the majority of retailers surveyed are still operating in silos, which is taking a toll on retailers’ profitability and ability to create a seamless shopping experience for customers. 
 
This and other findings are highlighted in CEO Viewpoint 2016: The Journey to Profitable Omni-Channel Commerce, which is based on a global survey of more than 300 retail and consumer goods CEOs conducted in late 2015.
 
This year’s report highlights crucial differences between CEOs who eliminated operational silos versus those who had not. Companies without operational silos expressed greater confidence in revenue growth (59% vs. 48%) and profit growth (63% vs. 43%) than their peers. The elimination of such silos speaks not only to stronger positioning for revenue and profit growth in the year ahead, but considerable differences in omnichannel maturity across the companies surveyed. CEOs that have removed silos are also achieving significant competitive advantage though lower costs and increased investments in customer-centric services.  
 
Not only are CEOs who have removed business silos less concerned about the impact of omnichannel operations, they also may have significant cost advantage over those companies still operating in silos. While a staggering 74% of CEOs in companies operating in silos say their costs for omnichannel fulfillment are increasing, only 59% of the companies that have eliminated silos say these costs are increasing.
 
For a deeper dive into the report's findings click here.