Winning in e-commerce when every sale counts The retail reckoning: Why deliveriesdefine success Retailers and brands are in a battlefor growth. Consumers are spendingcautiously, competition isintensifying, and margins are And yet, many overlook ahidden goldmine: thedelivery experience. Delivery is no longer just a logisticsfunction. It’s a brand experience, asales driver, and a loyalty engine. It’s The economic reality: Consumers are hesitant,but they’re still buying Macroeconomic shifts have made consumers more selective than ever: Caution is the new normal nShift and Retail Week researchshow that only 1 in 4 consumers feeloptimistic about their finances, and43% now consider themselves “value- Retail growth is sluggish Loyalty is eroding In the UK, retail sales grew just 0.4%year-over-year in Q4 2024iii—belowinflation, signalling restrained Nearly half (48%) of consumers saybrand loyalty no longer influences theirpurchasing decisionsii. They will switch Rising operational costs Supply chain disruptions, increasedVAT in several European countries, andinflationary pressures mean businesses New opportunities in digital transformation Businesses investing in AI-driven logistics, automation, and data-driven customerexperiences are outpacing competitors by improving efficiency and meeting evolving Declining brand loyalty in 2024 % of shoppers that changed retailers for lower price in first quarter of 2024 Source: State of the Consumer 2024: What's now and what's next, June 2024, McKinsey & Company. The takeaway? Consumers are still spending, but they expect brands to meet them wherethey are: with value, convenience, and a seamless shopping experience. Hope on the horizon Despite a diminished economic outlook, there are several reasonsNew retail business models Big plans for growth for optimism in retail and ecommerce during 2025:Several big-name retailers such as are proving fruitful Holland & Barrett and Schwartz Grouphave hinted at ambitious growthRecommerce is showing promise withthe market for second-hand clothing expected to be worth more than $35billion by 2029v. In 2024,Lithuania- Greater access to newtechnologies Strong medium-termecommerce forecasts Tech innovation has exploded inrecent years with the rapid growth ofgenerative AI being the best example. Forecasters predict that the Europeanecommerce market will grow from €389billion in 2024 to €565 billion in 2029ix. Deliveries as a growth engine: The power ofunified commerce Shoppers today browse, compare, and buyacross multiple channels, expecting a seamless,always-on experience. 69% of consumersnow engage in ‘ambient shopping’—making Gartner® identifies unified retail commerceas “the dominant strategy reshaping the retailindustry.”*Businesses that align customer But when the post-purchase experience isfragmented—late deliveries, lack of tracking, orcomplicated returns—loyalty suffers. On the *Gartner, Quick Answer: What Is Unified Retail Commerce, and WhyDoes It Matter?, By Max Panther Hammond, 14 June 2024. GARTNERis a registered trademark and service mark of Gartner, Inc. and/orits affiliates in the U.S. and internationally and is used herein with How brands can unify logistics & CX for stronger growth: •Real-time stock visibilityensures customers get accurate delivery •Tracking as a brand touchpointturns post-purchase updates into •Returns as a retention tool—encouraging exchanges instead of refunds •AI-driven fulfillmentspeeds up deliveries and lowers logistics costs. The takeaway? Retailers that connect front-end experience with back-end logistics don’tjust fulfill orders—they turn deliveries into a competitive advantage. When It’s all in the delivery. Four strategies for growth The delivery experience is a defining example of where a unified commerce approach can driveretail growth. By giving businesses and customers confidence in deliveries, brands, warehouses Strategy #1 Increase cart conversionsto reduce abandonment anddrive salesBusiness leaders are looking for growth now.No matter how much a business must regroup orreengage customers, there’s no time for activities that Cost-effective ways of fuelling growth include: Driving business growth with increased Brands and retailers risk losing a collective $18 billion in 2025through people abandoning their shopping basket.xiHowever, theright range of delivery options can increase cart conversions by Enabling novel retail models Consider models such as direct to consumer (D2C), marketplaces,preloved, vintage, etc. These help the business think laterally aboutnew ways of engaging with customers and create avenues to Show customers you share their values... ...by offering sustainable delivery options and setting up certaindelivery options to trigger charitable donations. Tracking emissionsenables businesses to demonstrate the progress of their reduction Keep it simple Ensure delivery options are presentedintuitively and consistently with