Digital IQ Index®: Big Box 2015

We see two types of winners in Big Box retail - those who invested in digital early and often, and those in categories that, at least for now, are mostly immune to the shift to digital, due to the high ship-to-weight ratios of their products or price points that make shipping uneconomical. The rest will continue to lose share in an environment plagued by slowing sales growth, declining foot traffic and the threat of Amazon. Omnichannel retailing is triggering a renewed focus on the store. 72 percent of digital shoppers claim the in-store experience is the most important factor in their purchase decision. A retailer’s mobile site and/or app is the critical link. Seventy-five percent of U.S. shoppers use a mobile device in the store, and 61 percent of those consumers compare prices, 52 percent use shopping lists, and 45 percent are looking for coupons or discounts. Over two-thirds of big box retailers offer a mobile app and mobile-optimized site and four out of ten display in-store inventory via mobile site. However, the majority of Big Box retailers miss the opportunity to enhance customer loyalty and drive incremental purchase by improving the in-store experience. Of the 43 brands with mobile apps, only 16 percent offer in-store notifications, only 12 percent offer in-store mapping, and only 7 percent offer scan and deliver. Home Depot retained its top rank with its best-in-class site features across devices, strong in-store integration through its mobile app, and superior email marketing program with compelling content, bold calls-to-action and seamless path to purchase on site product pages. Our second annual Digital IQ index® Big Box attempts to quantify the digital competence of 61 Big Box Retail brands operating in the U.S. Members can download the full report at L2inc.com.