The Power of Omnichannel Retail in Fashion

Omnichannel represents the future of fashion. This reflects the increased integration of our physical and digital realms — and the expectation that consumers can easily access both environments when or how they see fit.

In fashion, omnichannel means incorporating elements of brick-and-mortar shopping with convenient online solutions, presenting the best of both worlds: personalized, engaging shopping experiences that also achieve the broad selection that online digital solutions can deliver. This strategy helps overcome common fashion industry challenges, such as the perennial mismatch between consumer expectations and e-commerce or in-store experiences. For instance, Customers may feel frustrated when they’re shipped apparel that doesn’t fit quite right, or when fabrics feel stiffer or flimsier than online pictures suggest. 

Meanwhile, physical locations deliver their own fair share of downsides — like limited sizing available on-site, preventing customers from actually taking advantage of changing rooms. Add inconsistent pricing (online versus in-store) and disjointed branding, and it’s evident why many customers feel as if e-commerce and traditional fashion retail still fail to hit the mark. 

Among deeper concerns at play is the customer’s search for a sense of identity and self-expression. This cannot easily be satisfied through one-dimensional (or  fragmented) shopping experiences. Fashion retail could benefit from a new ethos — one that gets at the heart of fashion. 

Enter omnichannel. This hybrid approach enhances convenience and immersion, forming a critical bridge between traditional in-store opportunities and the expansive world of e-commerce (not to mention social media and mobile apps). Omnichannel strategies aim to deliver cohesive shopping experiences that appeal to every type of modern consumer.

Read on as we explore the secrets to omnichannel retail in the fashion industry, revealing why omnichannel is the new normal — and what it takes to excel in this influential realm.

What Is Omnichannel Retail?

The term “omnichannel” describes the availability of multiple channels or points of connection (occupying both the physical and digital space) that are seamlessly integrated so that customers can complete transactions without friction, regardless of where or how they choose to navigate this process.

Sometimes referred to by retailers as a “unified view,” the modern omnichannel ethos suggests that businesses should make retail experiences feel as cohesive as possible. This has fueled improvements not only in overall convenience but also in consumer engagement so that both physical and digital retail environments feel personalized and immersive.

The Benefits of Omnichannel Retail in Fashion

At this point, omnichannel opportunities do not merely provide a competitive edge. Rather, they are outright expected by today’s discerning consumers. Without omnichannel offerings, brands run the risk of seeming outdated.

Speaking to these shifts in expectations, Ryder System Inc. Jeff Wolpov explained in a press release, “The emergence of e-commerce and growth of omnichannel fulfillment … has altered consumer expectations and behavior dramatically,” adding that, “Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success.”

Beyond these changes in customer expectations and brand perceptions, omnichannel has a documented positive impact on both immediate revenue and consumer loyalty, as evidenced by a Forrester Consulting study commissioned by SAP Emarsys: 46% of surveyed businesses indicate that “genuine omnichannel efforts” led to “increased customer lifetime value.”

Below, we highlight core elements of omnichannel retailing that contribute to these tangible advantages in the fashion world:

Enhanced Customer Experience

Many customers take issue with elements of both the in-person retail experience and online shopping. When visiting brick-and-mortar stores, they are often disappointed to encounter long checkout lines or may struggle to find the right items in the first place.

Meanwhile, strictly online shopping can cause shipping delays and limit shoppers’ ability to try on fashion items. Even if they can return products that don’t fit, the return process can be a hassle in and of itself. 

With omnichannel solutions, however, customers can adapt their experience, opting for a hybrid approach that draws on the best of multiple retail solutions. A skeptical online shopper might reserve a dress to try on in-store, for instance, or browse fresh styles online before examining fits and fabrics in person.

Increased Customer Engagement

Empowering customers to connect according to their unique preferences, omnichannel improves overall engagement through the power of personalization. Consumers feel more invested in fashion brands when they can direct their experience and, as a result, are more likely to interact with brands more frequently — and while using multiple channels.

While research confirms that “associations between omnichannel customer experience and customer engagement are complex,” it reveals that omnichannel provides expanded opportunities for engaging via personalization and through offering seamless customer experiences. To that end, experts recommend that omnichannel retailers “implement tailored, actionable strategies that enhance both messaging and customer experiences.” In fashion, this could be as simple as providing curated recommendations that take both online browsing history and in-store purchases into account. Retailers might go above and beyond with lookbooks tied to customers’ preferred sense of style, along with personalized tips they can put into action through in-store try-ons or by recreating favorite looks at home. 

Improved Customer Loyalty and Retention

The advantages outlined above coalesce to create increasingly loyal customers who will make repeat purchases if they feel confident that a given retailer promises maximum convenience and flexibility across all channels. 

Fashion retailers can further capitalize on this by purposefully curating omnichannel-focused loyalty programs that reward consumers for engaging via multiple channels. Insights from Amazon Web Services suggest that today’s discerning consumers need a “bona fide reason to perpetually engage with a preferred brand” and that omnichannel-oriented loyalty programs can serve this function. These might incorporate online invites for in-person experiences, such as styling or try-on events that get them excited about new collections. Meanwhile, online follow-ups encourage ongoing engagement. Styling tips, for example, reveal how customers can make the most of their recent purchases.

Better Inventory Management

Through unifying inventory information across numerous sources or locations, omnichannel strategies optimize overall fashion inventory management. This limits the potential for dead zones (as excess stocks can be used for online order fulfillment) as well as the potential for overstocking, thereby promoting leaner operations and significant savings.

In regard to unified inventory management, consumers generally consider inventory visibility across locations and platforms  to be important. Omnichannel strategies can facilitate this by consistently providing real-time inventory data that extends across all channels. This allows customers to consistently access not only their favorite styles but also the right sizes, materials, and colors. 

Increased Sales and Revenue

By limiting friction, omnichannel setups spark higher checkout and conversion rates. This maximizes transaction completion to such an extent that overall sales and revenues may see a substantial boost. 

Specifically, a popular omnichannel solution known as “buy online, pickup in store” (BOPIS), and especially curbside pickup, yield documented improvements in conversion rates. Chains with curbside opportunities saw conversion rates of nearly 4% in 2024 — a full point higher than those lacking omnichannel solutions.

Average order values (AOVs) also increase as consumers add premium items, such as designer handbags or limited-edition releases, often in response to personalized recommendations. Even small add-ons (prompted by curated recommendations) can make a big difference over time, as those extra accessories purchased at checkout certainly add up. A McKinsey & Company report indicates that promising results from Sephora’s omnichannel strategy reflect this advantage. Consumers who utilize omnichannel offerings spend 13% more than other customers.

Streamlined Marketing and Consistent Messaging

In the effort to adopt omnichannel strategies, many fashion brands may refine their marketing efforts, adopting consistent messaging across numerous touchpoints. Customers should feel confidence that, whether they search for apparel and accessories online or in-store, retailers will consistently offer items that reflect their preferred sense of style. After all, it may be disconcerting to see something like street style and casual language prioritized online but then encounter formal or sophisticated vibes in the store. 

SAP Emarsys recommends leveraging a variety of online and offline marketing channels (such as social media, email, and brick-and-mortar displays) to deliver curated and elevated engagements that culminate in a “consistent, personalized experience to customers throughout the customer journey.”

Omnichannel vs. Multichannel Retailing

Omnichannel and multichannel retail share much in common, including the use of multiple channels or touchpoints to satisfy consumers’ unique needs. That being said, some core differences are worth noting: namely, the comparative lack of integration in multichannel retail.

With omnichannel strategies, fashion retailers aim to create a holistic experience above all else, ensuring that all interactions feel seamless. This emphasizes the collective series of fashion experiences. Browsing new collections online would ideally feel closely linked to trying on styles in the store. 

Multichannel places a greater focus on how customers interact with individual channels —  ensuring, for example, that e-commerce and brick-and-mortar locations are available but not necessarily linked. Customers might appreciate the multiple options that multichannel solutions provide yet may ultimately feel disconnected if they spot differences in online and in-person availability or inconsistencies surrounding pricing or promotional strategies.

Strategies for Implementing Omnichannel Retail in Fashion

Much of omnichannel’s appeal lies in its versatility, with different brands using different strategies to accommodate consumers across various touchpoints. Ideally, these strategies will align with brands’ overarching mission and values. However, a few priorities hold appeal across numerous sectors and are particularly influential in fashion: 

Unified Inventory Management

Drawing upon centralized stock information, unified inventory management promises full visibility, regardless of where data originates or how it is used. This, in turn, limits issues such as stockouts or overstocking, focusing on the big picture of inventory management while driving informed decisions regarding replenishment and stock redistribution. This is particularly important when navigating seasonal styles or limited-edition releases. 

Data-Driven Personalization

Today’s fashion retailers can gather high volumes of consumer data, made available through purchasing history, browsing behavior, or customer surveys. This promotes personalized recommendations: for example, ideas for coordinating for example or even suggestions for completing outfits based on past purchases. 

While data-driven solutions have previously been driven by e-commerce, omnichannel enhances this by also integrating in-person behaviors. For instance, brick-and-mortar retailers can track foot traffic and in-store purchases, and then this information is ultimately merged with online insights to provide a more well-rounded view of consumer preferences.

Mobile Integration

Mobile opportunities bring digital engagement into physical spaces. This effort is largely driven by brand-specific mobile apps, which make it easy for consumers to browse products and make purchases using their mobile devices. Favorites include easy-to-use apps and loyalty programs from retailers such as ASOS and Lululemon. 

Apps provide yet another chance to promote in-store experiences — for instance, through click-and-collect solutions to add an extra layer of convenience while transforming online purchasing into omnichannel interactions. Meanwhile, in-store mobile assistance allows consumers to confirm product availability or look up details that might not be readily available on physical tags or packaging.

Increasingly, fashion retailers leverage virtual try-on solutions to address some of the deficits of online-only shopping, replicating the in-store try-on experience by helping consumers visualize products, for example. In-store smart mirrors up the ante by helping customers visualize different styles, colors, or patterns without the constant need to physically change outfits.

Social Media and Online Engagement

Social media is a driving force behind many current successful omnichannel strategies. While its ability to drive online engagement holds sway in the e-commerce space, social media can also have a powerful impact on brick-and-mortar retail and even hybrid strategies such as BOPIS. 

Social media isn’t just about driving online traffic; it’s a tool for listening and gathering insights so fashion retailers can better understand what customers crave and where current offerings fall short. Social media also builds community between customers. Through comments, they connect over their shared sense of style, all while discovering new trends and even influencing one another to explore new forms of expression.

Integration of In-Store and Online Experiences

Many consumers favor the convenience of click-and-collect or BOPIS, which allows them to explore offerings online but without waiting for items to ship. Instead, they can order online and pick up at preferred retail locations. This is a great option for last-minute fashion finds, such as grabbing the perfect dress before a holiday party or new shoes for an interview. 

Integrating online and in-store offerings, fashion retailers may streamline purchasing processes, improve returns management, or increase commitment through omnichannel loyalty programs.

Real-World Examples of Omnichannel Retail in Fashion

Success stories indicate that omnichannel solutions are not just possible — they can prove downright transformative. Here, we showcase a few promising case studies and what they say specifically about omnichannel as it relates to the fashion industry: 

Nike

Offering the ultimate example of omnichannel success, Nike leverages a diverse array of mobile apps, membership opportunities, and even running clubs to boost both online and community engagement.

The Dream Crazier campaign brought all these elements together while integrating an inspiring message about female athletes and their ability to break barriers. This campaign revealed the storytelling potential of a well-executed omnichannel campaign, leveraging both meaningful videos and in-store experiences while integrating an appealing membership program to encourage in-store traffic.

Zara

Zara’s demand-driven model integrates well with omnichannel solutions, encouraging convenience via in-store scanning and other opportunities to blend online and in-person conveniences. For instance, Zara’s Store Mode allows app users to find relevant information about products of interest, in turn influencing their purchasing decisions. Shoppers can even reserve fitting rooms to help ensure they have the space available to try on items.

Nordstrom

Integrating omnichannel into a luxury market, Nordstrom reveals how high-end retailers can seamlessly promote exclusivity and convenience. For example, Nordstrom Local service hubs allow for easy returns and may even allow consumers to take advantage of express alterations. Additionally, Nordstrom has leveraged advanced inventory management solutions (involving RFID) to improve visibility and overall convenience for both in-store and online customers.

FAQs About Omnichannel Retail

Moving Forward With Omnichannel Retail

Omnichannel retailing presents exciting opportunities to create loyal and highly satisfied customers without sacrificing the convenience of online shopping. Going forward, fashion retailers should expect to integrate numerous channels and technologies to curate seamless experiences that keep consumers continuously engaged.

Shape the Future of Fashion Retail With JWU Online

Embrace new opportunities in the fashion industry through JWU Online’s Bachelor of Science Fashion Merchandising & Retailing program. Exploring innovative solutions, our program encourages you to step into the future of fashion through omnichannel and other cutting-edge models. Get in touch today to learn more about this career-driven program and begin your fashion-focused professional journey.

For more information about completing your degree online, complete the Request Info form, call 855-JWU-1881, or email [email protected].