E-commerce drives 11.5 percent of specialty retail sales and is responsible for 41 percent of incremental revenue growth over the past five years.
Retailers benefiting from this growth are adapting to an altered landscape where online sales outpace total sales fourfold—and store openings elevenfold.
With the decline of foot traffic, retailers are turning to digital with 100% supporting e-commerce, and 77% offering some form of free shipping.
However, the majority of retailers are missing an opportunity to move customers fluidly between site and store.
Only 16 percent offer the ability to pick up in store items bought online,
and only 18 percent leverage their email newsletters to offer in-store redemption of promotions.
Despite near-universal mobile site optimization, only 22 percent leverage mobile search engine marketing to direct shoppers to a nearby store,
and 38 percent promote an offline path to purchase from their mobile product pages.
While mobile apps are prevalent among retailers, two thirds miss the opportunity to offer in-store utility like barcode scanning.
For the third consecutive year, Sephora leads our Index as the sole genius brand.
The retailer dominates organic search, and continues to innovate on mobile.
Sephora’s best-in-class product pages provide find-in-store functionality, comprehensive video tutorials, and a user-generated “Beauty Board”.
And in a direct response to Amazon Prime, in March Sephora launched its own subscription shipping service, Flash.
This study attempts to quantify the digital competence of 73 specialty retail brands in the U.S. market. Members can download the full report at L2inc.com.