Fujitsu asks How Omni-channel Ready are Europe’s Retailers

Luxembourg, September 17, 2015 New industry research released today by PAC¹ shows that customer expectations are driving the widespread adoption of omni-channel retail which – when done right – will give shoppers the flexibility they demand to collect product information, check availability, make purchases, and arrange collection or delivery using the most convenient mix of in-store, online/web shop, mobile, catalogue or social media.

However, the study, which was sponsored by Fujitsu, found that omni-channel maturity varies greatly. For example, Nordic-based retailers have the highest store-to-online integration in place (at 75 percent), with 66 percent of respondents already selling via mobile channels. Over half of UK retailers also place relatively high importance on digital channels, in stark contrast to Germany (less than one third favour digital over the store) and only 25 percent of Italian retailers. Fujitsu asks: how omni-channel ready are Europe’s retailers?

Richard Clarke, Vice President, Global Retail at Fujitsu says: “It is clear that retail brands must get real-time, accurate data into the hands of store associates as soon as possible. But care needs to be taken when choosing omni-channel solutions. Speed, efficiency and ease are made possible by providing information in a single interface that each staff member knows, understands, and uses regularly. The technology’s ease of use is one element, but regular in-store staff training is equally important. Retail is fast-moving and can be complex, so it is essential that an omni-channel solution – such as FUJITSU Retail Solution Market Place – has the ability to evolve and respond to every change – and stay ahead of customer expectations. Having a great retail brand is a massive advantage. Employing excellent staff provides an edge. But choosing the right omni-channel solution is equally important for ambitious retailers that want to stay ahead of the competition.”

In fact, PAC’s study found that almost 70 percent of retailers state that the expansion of their digital presence is a top short-term priority. This highlights that effectively managing and integrating multiple channels is a vital success factor for retailers. For example, FUJITSU Retail Solution Market Place achieves this by supporting enterprise-wide transaction and order fulfilment to deliver a consistent and seamless buying experience to customers via traditional PoS, online and mobile channels using a single user interface (UI).

Nick Mayes, Principal Analyst at PAC, said: “Europe’s retailers will have to make some big changes in order to give increasingly demanding customers what they want – a seamless experience across a diverse set of channels. But it is encouraging that they recognize that achieving their omni-channel goals requires shifts in both culture and organization, as well as investment in underlying technology platforms."

Fujitsu works with retailers to help them master these kinds of challenges, using IT to take the customer experience and business efficiency to the next level. Building on a deep understanding of retailing gained over the past 50 years with more than 500 customers and 82,000 stores in 52 countries worldwide, Fujitsu’s mission is to deliver a differentiated customer experience that will increase sales, operational effectiveness and customer satisfaction for retail clients.

Business challenges associated with omni-channel are holding back many retailers

Omni-channel is viewed by European retailers as a business (rather than IT) challenge: more than 90 percent stated that their omni-channel strategy is led either by the CEO, or the sales and marketing leadership teams (the latter the largest group, at 45 percent). This relates closely to the top three challenges to implementing an omni-channel strategy: developing a long-term channel integration strategy (80 percent); making changes to the organizational structure (70 percent); and understanding client activity across the different channels (70 percent).

Today, very few of the retailers surveyed have deployed cross-channel integration solutions (6 percent) that would support business leaders to address these challenges, with the Nordic retailers again leading the way. However, almost half of retailers plan significant IT investment in the next two years to support their omni-channel strategies. Main areas of spend include: webshop systems (67 percent), online/mobile payment software (62 percent), customer relationship management (54 percent), and mobile shopping apps (43 percent).