Omnichannel Retail Brings Together Online and Offline Shopping

CIO — The smell of the perfume, the drape of the fabric, the grain of the leather--these sensory experiences are about the only advantage that brick-and-mortar retailers have over online stores when trying to sell merchandise.

[Related: Retail CIOs Need to Step Up Their Game]

Unfortunately for traditional stores, today's shopper carries a smartphone that allows her to scan the price tag in the store and then buy the same thing online for less. The phenomenon, called "showrooming," causes store managers to harrumph about the "scan and scram" shopper.

CIO — The smell of the perfume, the drape of the fabric, the grain of the leather--these sensory experiences are about the only advantage that brick-and-mortar retailers have over online stores when trying to sell merchandise.

[Related: Retail CIOs Need to Step Up Their Game]

Unfortunately for traditional stores, today's shopper carries a smartphone that allows her to scan the price tag in the store and then buy the same thing online for less. The phenomenon, called "showrooming," causes store managers to harrumph about the "scan and scram" shopper.

But what if physical stores had both: the sensory experience of a boutique plus the click-click shopping efficiency and seemingly endless inventory of Amazon.com? What if a sales associate could use a mobile device to order a garment in a different color or size right when the shopper is in the dressing room?

Many of the bellwether retail companies, such as The Home Depot, Lowe's, Macy's, Nordstrom, Sears and Staples, are spending millions of dollars on IT to bring online capabilities into stores. The tactics include adding in-store Web kiosks, arming sales associates with mobile devices such as iPads, and (paradoxically) encouraging shoppers to use their smartphones in the store.

But this approach is only one step toward an even more ambitious goal that pundits call "omnichannel" retail, which unites physical stores, e-commerce, mobile and social selling into one seamless experience for the customer.

For Sears, that means customers can order products online and pick them up in stores. They can have online-purchased items shipped to them, and can return unwanted items at stores. They can get text messages alerting them to special deals, or use Sears smartphone or tablet apps to manage their shopping lists or find product reviews.

"Technology plays a massive part in delivering an integrated customer experience, so we're doing a lot more around servicing you as a customer and delivering products the way you want to be serviced," says Keith Sherwell, senior vice president and CIO for Sears Holdings.

Consider the role technology plays in how Sears works with a customer looking to buy a lawn tractor. That customer could start with his desktop PC to research which tractor is best for his yard, using the Yard Guru buying guide at Sears.com. Or he could use the Sears app on his smartphone, or in the store at a Web terminal or while working with a sales associate who might have one of the more than 400 iPads and iPod Touches deployed as part of a chain-wide pilot program.