Despite the continuous upheaval in retail, best-in-class players are deepening integration between their digital and physical properties, championing a channel-agnostic, customer-first position in order to avoid total disruption. Nearly a third of brands analyzed in Gartner L2’s sixth annual omnichannel report claimed a Leader position this year, up from just 9% last year. New investments in fulfillment services and drive-to-store site features played a large role in the surge, as did digital marketing campaigns touting these capabilities.
Discover how each brand stacks up to the competition in our new interactive, which benchmarks retailers on two key dimensions of omnichannel: on-site functionalities and digital marketing. Based on their aggregate performance, brands were divided into Leaders, Streamliners, Undersellers or Laggards.
Leaders (31%) boast high on-site enablement of omnichannel capabilities and ample marketing efforts across email, social media, display advertising and search. Leader designations’ frequency reflects a rise in baseline features as digital retail matures. Furthermore, 74% of brands with above-average site scores also excelled in digital marketing. Large-format retailers overwhelmingly represent Leaders, yet include brands across diverse product assortments, which range from Macy’s to Petco to H-E-B.
Streamliners (22%) have average to below-average deployment of on-site features, but effectively broadcast them on digital marketing channels. These brands therefore have an opportunity for improving their site experience to further capitalize on marketing messages and drive customer conversion. Diverse sectors represent this category, with activewear and beauty falling into it most frequently. Examples include MAC Cosmetics, Sephora, and New Balance.
Undersellers (11%) provide baseline and advanced site features, but often forgo marketing them to audiences on third-party platforms. To strengthen their positions, these brands need to make consumers more aware of their capabilities by amplifying marketing investments. Fashion brands most commonly fall into this quadrant, including the likes of Gucci and Salvatore Ferragamo.
Laggards (36%) lack site sophistication and also fail to market drive-to-store or fulfillment initiatives. As the largest quadrant, a smattering of verticals are represented — most frequently watches & jewelry, beauty and activewear. Laggards need to first improve their sites, then divert funds to marketing revamped capabilities.