Retailers to invest £5bn in omnichannel in next five years

Retailers are now spending the equivalent of 3% of their annual turnover on omnichannel, according to a survey of UK and US retailers’ boards including Argos and John Lewis by LCP Consulting.

The report says that creating an omnichannel offer requires significant re-engineering of the retail business operating model.

However, the report states that return on investment in omnichannel remains unclear, with many retailers investing in omnichannel “simply to compete”.

More than a third of board directors stated that an aligned board was essential and that functions such as operations, supply chain and IT need to become more influential in the boardroom.

Fomer Halford chief executive David Wild, who was surveyed for the report, said: “I think that retailers are some way off completing the omnichannel revolution, but no sector is there yet. Change is continuing because technology is evolving so quickly and customers’ habits are adjusting still.”        

LCP Consulting managing director John Lockton said: “UK retail is responding actively with planned investments likely to reach £5bn over the next five years – the question is whether this is sufficient, creates the right level of flexibility for the future, and is fast enough.”