DEATH OF PUREPLAY RETAIL

INTELLIGENCE REPORT DEATH OF PUREPLAY RETAIL LAST MILE

More Stores = More Sophisticated L2 collects data on omnichannel retailers’ propensity to push consumers from site to store. As evolved retailers expand their physical footprint, their in-store and omnichannel execution becomes more sophisticated. Based on the criteria used to evaluate site-to-store incentives, a significant positive relationship emerges between an evolved retailer’s number of stores and its integrated fulfillment score. The transition to stores is difficult; retailers must learn to balance in-store and online inventory, train sales associates and staff, implement backend website changes, and create a seamless multi-channel experience. Yet as evolved retailers scale, implementation becomes easier and relatively cheaper, with a more gradual learning curve at each new store.

Death of Pureplay Retail: Integrated Fulfillment Score vs. Number of Stores October 2015, n=19 Evolved Pureplay Retailers

12

R 2 = 0.30542

Yogibo

10

Rent the Runway

8

Frank and Oak

Athleta

6

Integrated Fulfillment Score Data Points Online Purchase / In-Store Pickup Online Reservation / In-Store Pickup Online Purchase / In-Store Return Real-Time Store Inventory on PDP Real Time Store Inventory during Checkout Curbside Pickup Displays Online Stock Availability Uses Zip Code to Estimate Delivery Date on PDP Ship-From-Store

Bonobos Fulfillment/Integrated Inventory Score 4

2

Warby Parker

0

0

20

40

60

80

100

120

Number of Stores

Source: L2 Intelligence Report: Death of Pureplay Retail, January 2016.

26

January 12, 2016

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