STOCK TITAN

Research Provides Retailers With Roadmap to Post-Pandemic Growth

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Manhattan Associates has reported significant insights from a study conducted with Incisiv, highlighting challenges and opportunities in retail fulfillment amidst rising e-commerce trends. The pandemic spurred a five-fold increase in e-commerce volume in 2020, pressuring retailers to enhance profitability in order fulfillment methods like BOPIS and curbside pickup. Key findings reveal that 79% of retailers reported decreased profitability in store-based fulfillment, while 80% expect an uptick in shopper demand for these services. The study emphasizes the need for frictionless customer experiences and improved inventory accuracy.

Positive
  • Significant increase in e-commerce volume by five-fold in 2020.
  • 80% of shoppers likely to increase BOPIS and curbside pickup interactions.
  • Highlighting the importance of omnichannel strategies for retailers.
Negative
  • 79% of retailers noted reduced profitability in store-based fulfillment.
  • 54% of retailers lack digital tools for store associates to engage customers.
  • 60% of retailers do not allow returns or exchanges during checkout.

Latest data from Manhattan Associates and Incisiv study finds fulfillment margins and frictionless customer experience top of mind for retail executives

ATLANTA, March 04, 2021 (GLOBE NEWSWIRE) -- The dramatic increase in ecommerce volume triggered by the pandemic has had an accompanying impact on retailers' abilities to provide profitable new forms of order fulfillment, such as buy online pickup in-store (BOPIS), ship-from-store, and curbside pickup, according to the latest report from Incisiv, commissioned by Manhattan Associates Inc. (NASDAQ: MANH).

Data revealed that the pandemic triggered a five-fold increase in ecommerce volume in 2020 compared to the same period in 2019. Amid the significant shift to online stores, many retailers struggled to grow profit margins through order fulfillment, according to the "The New Store Experience Imperatives in High-Touch Retail" report. It also identified the pressing need for retailers to create frictionless customer experiences across physical and digital touchpoints.

"The ecommerce uptick of the last twelve months has necessitated a realignment of how retailers approach leveraging store associates, locations and inventory," commented Kevin Swanwick, vice president, store solutions, Manhattan Associates. "Associates became pickers and shippers; stores turned into mini fulfillment centers, and in-store inventory was increasingly made available online."

As the pandemic's impact continues to accelerate the transformation of brick-and-mortar retailers, the research revealed some key findings for retailers looking to chart a path to success in a post-pandemic world:

  • Retailers must make store-based fulfillment more profitable. The significant growth in BOPIS, curbside pickup and other modes of fulfillment has squeezed margins. Seventy-nine percent of surveyed retailers say the profitability of orders fulfilled from stores was reduced somewhat or significantly between Q1 and Q2 2020. With 80% of shoppers expecting to increase BOPIS and curbside pickup over the next six months, it's critical that retailers identify and address the inefficiencies causing this loss to improve profitability. 

  • Unified customer experience across touchpoints is key. Eighty percent of shoppers said they were likely or very likely to have digital interactions with store associates over the next six months. Yet 54% of retailers don't currently equip their associates with the digital tools to reach out via email, text or social media, and 81% do not enable store associates to contact a customer about an online order.

  • Frictionless experience is critical. The survey found that returning an item ranked as the number two motivator for future store visits by customers, second only to the need for same-day products. However, 60% of retailers surveyed do not allow shoppers to return or exchange an item during checkout, adding an unnecessary obstacle to flipping the return interaction from a loss to a profit. 

  • In-store inventory management needs to match warehouse accuracy. Eighty-five percent of surveyed retailers ranked inventory accuracy as a top priority to improve BOPIS and curbside pickup options. Retailers faced challenges with in-store inventory numbers that were not nearly as accurate as warehouse numbers.

“Brick-and-mortar retailers still hold an important place in the evolving retail landscape, and how well brands embrace these changes to the store footprint will directly impact their overall profitability,” said Gaurav Pant, chief insights officer, Incisiv. “We recommend retailers focus on delivering safe, convenient in-store order fulfillment options. Equally important is enabling associates to communicate with shoppers digitally and providing a high-quality, consistent cross-channel experience.”

Download the Point-of-Sale Software for High-Touch Retailers Buyers’ Guideto learn more about the report. Incisiv conducted a hybrid online and computer aided telephonic interview (CATI) survey of 140+ U.S. retail executives whose stores offered at least one method of store-based online order fulfillment.

Receive up-to-date product, customer and partner news directly from Manhattan Associates on TwitterLinkedIn and Facebook.

ABOUT MANHATTAN ASSOCIATES
Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.

Manhattan Associates designs, builds and delivers leading edge cloud and on-premises solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

ABOUT INCISIV
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact and profitability. More information is available at incisiv.com.



FAQ

What does the recent report by Manhattan Associates and Incisiv reveal?

The report highlights challenges retailers face in order fulfillment due to the pandemic, emphasizing the need for improved profitability and customer experience.

How much did e-commerce volume increase in 2020 according to the report?

The report states that e-commerce volume increased five-fold in 2020 compared to 2019.

What percentage of retailers saw a drop in fulfillment profitability?

79% of surveyed retailers reported a reduction in profitability for store-based fulfillment methods.

What do shoppers expect regarding BOPIS and curbside pickup?

80% of shoppers expect to increase their use of BOPIS and curbside pickup in the coming months.

What improvements are suggested for retail fulfillment?

The report suggests enhancing digital tools for associates, improving inventory accuracy, and allowing easier return processes to increase profitability.

Manhattan Associates Inc

NASDAQ:MANH

MANH Rankings

MANH Latest News

MANH Stock Data

16.76B
60.34M
1.2%
101.98%
3.92%
Software - Application
Services-prepackaged Software
Link
United States of America
ATLANTA