Omnichannel sales aren’t as buzzy as they were early in the COVID-19 pandemic, but retailers still relied on them to reach customers in the second fiscal quarter of 2023. Walmart Inc. and Target Corp. both credited omnichannel sales for leading online sales in their fiscal second quarters. Both retailers cited their versions of online order pickup as standouts in the quarter.
Walmart ranks No. 2 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading online retailers by web sales, and Target ranks No. 5.
82.70% of retailers in the Top 500 offered BOPIS as of March 2023, more than in any previous year. Fewer retailers have curbside pickup, with just under 50% offering the omnichannel sales option.
Several retailers noted that omnichannel customers tend to be more loyal or make more additional purchases.
Bath & Body Works Inc. (No. 56) reported positive results for BOPIS, which it first implemented in Q1 2023. In its fiscal second quarter, adoption subsequently grew 25%, the retailer said. About 30% of BOPIS customers buy something else when they pick up their orders, driving further sales, it said.
Similarly, BOPIS and curbside pickup were responsible for most of the online sales growth BJ’s Wholesale Club (No. 68) reported, the retailer said.
Ulta Beauty (No. 46) announced intentions of growing its omnichannel business. Its omnichannel customers purchase 2.5 to three times more than single-channel customers.
Other takeaways from Q2 earnings
- Consumers were pickier about spending discretionary income.
- Spending on home improvement and furniture was down.
- Discount retailers were the winners in second-quarter earnings results.
Matt Love contributed to this article.
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