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Key retailers missing out due to lack of multichannel platform

Morrisons is missing out on £300m in potential sales because it has yet to develop a multichannel platform that allows customers to shop via integrated mobile, digital or in-store channels, according to a new study.

It is the only major supermarket without a noteworthy online operation, but Morrisons is gearing up to launch online services and is currently trialling an ecommerce operation.

It also has an app which allows shoppers to browse products, but is not yet transactional.

The report by digital agency Head London in partnership with Oxford Economic also identified that Dixons, Phones4u, Homebase, SportsDirect and DFS are the biggest victims of poor digital strategy, and are losing out to rivals that offer a more joined up service.

Despite the efforts made by some retailers to develop integrated multiplatform operations, the top 100 retailers in the UK lost out on £0.5bn between 2007 and 2010 by failing to integrate digital, mobile and traditional stores.

Tesco, came out on top of the survey, and has added £255m thanks to its “superior multichannel performance”.

Boots, which recently launched a mobile commerce site and John Lewis, which is extending its click and collect offering, also ranked highly in the survey.

The research ranked 100 high street retailers on how well they integrated mobile and online with stores and cross referenced it with sales performance, and claims to be the first time that the digital deficit has been quantified.

Sam Moore, director of consulting services at Oxford Economics, says: “We found a clear link between growth and multi-channel performance. This confirms there is a commercial incentive for firms to invest in a digital multi-channel strategy.”

Separately, a study carried out by YouGov on behalf of 2ergo found that 76% of high street retailers do not have a mobile site or mobile-optimised content.

What retailers are missing put on:

Morrisons - £314million
Dixons - £32.6million
Phones 4U - £17.5million
Homebase - £9.6million
Sports Direct - £9.5million
DFS - £5.9million

Source: Rosie Baker - Marketing Week

19 September 2011
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