Retail Week Indicator, launched last week, highlights the best digital retailers in the UK. Here we look at what it takes to get into the top 20.

It’s only been 20 years since the leading retailer in Retail Week Indicator’s study, Asos, was founded, in contrast to the many traditional retailers placed lower down in our inaugural ranking.

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Indicator reviews the customer-facing digital capabilities of the top 180 retailers in the UK – across marketing, logistics and customer service, cross-channel and ecommerce – offering a comprehensive view of what is important in the customer’s shopping journey today.

Customers’ expectations have never been so high, and many retailers are struggling to understand and deliver what is right for their customer now – and in the future.

As we embrace the digital revolution, retailers’ profit margins are coming under pressure almost without exception – many are faced with increased investment costs in their bid to deliver digital-first strategies in an industry fuelled by diminishing customer loyalty.

Amid additional unwelcome cost pressures from adverse exchange rates and the introduction of the national living wage, reports of staff redundancies, store closures and liquidation are becoming the norm.

Recently, beleaguered department store group House of Fraser announce the closure of 31 stores – over half its estate – admitting its failure to innovate, while New Look’s CVA paves the way for 60 of its UK stores to shut.

These two weren’t the first and won’t be the last.

Delivery game-changers

It is vital for retailers to understand how they can invest well to win in the digital economy and turn their fortunes around.

They can learn from the digital strategies of leading 20 retailers in Indicator’s digital capabilities’ ranking.

Thanks to the likes of Amazon, the first to offer same-day delivery back in 2014, customers have become accustomed to a world of convenience, ease and speed. The arrival of Amazon’s exemplary delivery offer prompted many retailers to up their game, with half of the top 20 now offering same-day delivery, while six offer it in 90 minutes or less.

Aside from convenience in delivery, customers also want guarantee, with 80% of the top 20 offering named-day delivery and 65% providing time-slot delivery.

For the grocery sector, convenience goes beyond a retailer’s fulfilment offer, with convenience in-store crucial for customers today. While all four of the grocers in the top 20 offer self-service checkouts, reducing queue times, some food retailers are also experimenting with scan-as-you-go apps, skipping checkout queues almost completely.

Breaking barriers

The role of the store has also evolved. The division between the online and offline channels no longer exists and retailers’ digital strategies should also be focused on understanding the role that digital plays in driving footfall to stores.

For example, over a third of the top 20 are driving customers to store by offering store stock visibility online.

But with three pureplay retailers in Indicator’s top 20, offering a connected online and offline experience goes beyond the store, with 65% of the top 20 partnering with third party logistics providers for returns, while half have partnered for click and collect delivery.

Eliminating barriers to purchase is key to deter customers from going elsewhere when shopping online. Website download speed on desktop is 0.8 seconds faster than average across the top 20 and 1.5 seconds faster on mobile.

With some retailers assessed in Indicator’s study yet to accept online returns to store, and others having over six checkout steps online, it is no wonder the top 20 excel in grabbing the customer’s attention.

Think of a powerhouse like Amazon – another relative newcomer, founded only 24 years ago. While it does not necessarily have the lowest prices, customers can find the product they want and purchase it within a matter of seconds, and in some cases have it delivered within the hour.

Explore the full findings of Retail Week Indicator, including the winners of the rankings in all each category, sector reviews, case studies and in-depth analysis.