The foundations of retail are being upended as the race to deliver Unified Commerce gathers pace, influenced and accelerated by technology advances, external socio-economic factors and the expectations of today’s ‘Blue Dot Consumer’.
Today’s consumers are the sun at the centre of their own purchasing universes: they control every aspect of their retail journeys, from where and when they browse and purchase items, to how they chose to pay and receive/collect them.
This cosmic shift in consumer expectations is causing a schism between customer expectations and current brand capabilities. The gap isn’t just a technology challenge—it represents a fundamental reimagining of how specialty retail doesn’t just create, but captures value too, and it’s a gap that needs addressing.
It’s not just theory. There is an empirical, hard-line economic benefit to be had from unifying commerce: for example, retailers who identify as mature Unified Commerce operators deliver 23% higher inventory turnover, 22% lower customer acquisition costs and 70% higher retention of connected customers—this makes the case for Unified Commerce compelling at both c-level and consumer levels.
With only 17% of brands stating that they have achieved Unified Commerce maturity, and 47% assessing themselves as still only being in the early stages, there remains a huge opportunity for the majority of retailers.
While the path to Unified Commerce may seem daunting at first, it is important to recognise that the real winners are the brands who get to the finish line, rather than those who make the fast starts.
Arc’teryx is renowned for its high-quality outdoor apparel and is recognised as being at the forefront of not just innovative outdoor wear but also retail strategies.
Recently, Joe Granato, VP of North America Stores & Global Retail Operations at Arc’teryx talked about the ‘time-value proposition’ with their guests (customers) and the company’s broader Unified Commerce strategy.
Today’s consumers are highly savvy—they shop across multiple channels and have done their research, making the time value proposition critical.
This sets the base for Arc’teryx’s Unified Commerce strategy which serves two key audiences: guests and frontline staff. With Manhattan Active Omni, Arc’teryx gets the right information to its frontline staff, in the fewest number of clicks, because for the customer “10 seconds is an eternity,” Joe added.
For Arc’teryx, success in the future is based on the value it provides the shopper and its frontline users, the store associates. With Manhattan’s POS solution, it has successfully enabled a deeper relationship and immediacy to deliver a seamless experience to both.
We are constantly listening to our store associates, ensuring they are armed with the right tools and technology to serve our guests effectively.
– Joe Granato, VP of North America Stores & Global Retail Operations, Arc’teryx
Furthermore, by leveraging advanced data analytics, Arc’teryx has been able to gain added insights into customer preferences and behaviours too. This data-driven approach allows the team to tailor its offerings, ensuring that both online and in-store experiences are aligned with customer expectations.
PacSun, a leading retailer in youth fashion, has embraced Unified Commerce by focusing on the convergence of digital and physical shopping experiences.
Shirley Gao, Chief Digital and Information Officer at PacSun highlighted the need to identify the most critical technology improvements and transformation opportunities and then unify them from a variety of different perspectives (customer experience, inventory etc.) so there was a ‘single point of truth’ whether fulfilling online or in-store orders.
The use of RFID has certainly increased PacSun’s inventory accuracy, while using Manhattan’s order management and fulfilment, point of sale and store inventory management offerings has resulted in a single, highly accurate view of inventory across its entire retail estate.
This not only allows PacSun to fulfil orders across channels like Pacsun.com, the PacSun App, Instagram checkout, Amazon and TikTok, it provides the opportunity to do a real-time evaluation of certain processes, including shipping handling costs, store labour constraints, store backlog and fulfilment options in relation to the proximity to the customer.
Last year, PacSun rolled out Manhattan’s POS and store inventory management offerings across 300+ stores within three months, just in time to handle the peak holiday shopping season. The ability to work offline with Manhattan’s POS also allowed it to continue transacting in mall locations regardless of server/network challenges.
Today, with one scan, PacSun can process return and refunds to the original payment or to store credit. “
With a unified commerce system, it’s one transaction, one checkout. I think the technology really enables you to unlock and leverage your entire network to provide customers with a consistent brand experience, regardless of what channel they choose to shop through. Some want to have their discovery online; some want to come to the store to engage, and some want to take a selfie and post on social media. Those are all your opportunities as a brand to make a connection and foster that relationship.
– Shirley Gao, Chief Digital and Information Officer, PacSun
The experiences of Arc’teryx and PacSun offer three valuable lessons for retailers aiming to implement Unified Commerce strategies.
First, invest in technologies that facilitate seamless interactions between online and offline channels. The right solutions can equip staff with the knowledge and tools to deliver the best brand experience possible.
Secondly, utilise data analytics to deliver frictionless selling and offer personalised retail experiences, enhancing customer satisfaction, loyalty and profitability.
And, finally, consolidate customer data from all channels and leverage advanced performance insights for smarter decision-making to gain a comprehensive understanding of shopping behaviours and preferences.
