Retail Margins Boosted by Omnichannel Maturity, Says Survey

13th January 2020

Logistics BusinessRetail Margins Boosted by Omnichannel Maturity, Says Survey

A recent survey by Manhattan Associates and IHL Group has uncovered a strong correlation between omnichannel fulfilment maturity and margins. The survey found retailers that optimize digital customer journeys see substantial improvements in their margins — anywhere from 3 to 8 points higher than retailers who have not optimised. However, despite these results, less than thirty percent of the retailers surveyed have optimized these processes.

Consumer demand for more personalised shopping experiences is driving the creation and expansion of omnichannel fulfillment services, such as buy online pickup in-store (BOPIS), ship from store and kerbside pickup. Historically, retailers scrambled to patch together multiple, disparate legacy systems in an attempt to satisfy growing fulfilment demands. However, many retailers have realized that these fulfillment methods often carry additional costs and complexity which have cut into their margins, creating the need to optimize digital customer journeys.

“With expanding fulfilment options and rising customer expectations, the retail market is rapidly growing in complexity,” said Greg Buzek, president of IHL. “Retailers need to quickly pivot to solutions designed and engineered for the way consumers shop today and into the future. Those who have optimized these customer journeys are racing ahead in profitability. Those who have not are losing many points of margin on every sale.”

Chris Shaw, senior director, Product Marketing and Analyst Relations for Manhattan Associates, added: “The best way to deliver profitable and effective omnichannel experiences is through the use of a unified commerce platform that was created specifically for the way we shop today. Manhattan Active®Omni is the most advanced unified commerce solution ever engineered. It is the first of its kind and specifically designed to deliver profitably on every omnichannel promise.”

Commissioned by Manhattan Associates and conducted by IHL, a global research and advisory firm, the survey was completed by over 300 retail brands in North America.To learn more about the findings, visit