Case Study: Implementing an Omnichannel Strategy for a Mid-Market Fashion Retailer
The Client
A fashion retailer with 150 physical stores and an e-commerce platform
The Challenge
The client approached us with issues in integrating its online and offline channels, resulting in inventory management issues, inconsistent customer experiences, and declining sales. E-commerce accounted for only 15% of total sales, well below the industry average of 25%. In-store sales were declining at 3% year-over-year, and overall customer retention rate was at 22%, down from 28% two years prior.
Solution
Over an 18-month period, we:
- Developed an integrated omnichannel strategy, aligning online and offline operations.
- Implemented a unified inventory management system across all 150 stores and the e-commerce warehouse.
- Created a mobile app with features including in-store item location, online ordering with in-store pickup, and a loyalty program.
- Introduced AR technology for virtual try-ons, integrated into both the mobile app and in-store smart mirrors.
- Established a data analytics platform for personalized marketing, analyzing data from 1.2 million customer profiles.
- Trained 1,500 store staff on the new systems and omnichannel customer service approach.
Results
After 24 months:
• Increased overall sales by 12% year-over-year.
• E-commerce revenue grew from 15% to 28% of total sales.
• Improved inventory turnover by 22%, reducing stock holding costs by $3.5 million annually.
• Reduced returns by 18% through virtual try-ons and better size recommendations.
• Increased customer retention rate from 22% to 31%.
• In-store sales decline reversed, showing 2% growth year-over-year.
• Click-and-collect orders grew to represent 35% of online sales.
• Customer satisfaction scores improved from 72 to 81 (out of 100).