How Omnichannel and In-Store Pickup Strategies Are Giving Retailers a Competitive Edge

Jan 08, 2025 • 10 min read

How Omnichannel and In-Store Pickup Strategies Are Giving Retailers a Competitive Edge

Not long ago, the typical shopping journey ended with a cashier scanning a barcode. Now, consumers expect to seamlessly jump between devices, apps, and physical stores—an evolution that retailers adopting an omnichannel approach are harnessing to their advantage. From click-and-collect models that shave down shipping times to hyper-personalized mobile apps, these integrated strategies are helping retailers drive sales, deepen loyalty, and, crucially, quantify the impact on their bottom line.

Omnichannel by the Numbers A 2024 Deloitte Global Omnichannel Report suggests that retailers who have fully integrated their channels can see revenue growth rates 6–8% higher than their single-channel peers. Meanwhile, the National Retail Federation (NRF) notes that 75% of shoppers now use multiple channels—web, mobile, or in-store—before committing to a purchase. “Omnichannel is no longer a buzzword,” says Leila Goodman, Senior Vice President of Digital Strategy at an international retail consultancy. “It’s what today’s consumer expects. You’re either meeting them where they are—or you’re losing them to someone else who will.”

In-Store Pickup Drives Incremental Sales One of the most tangible benefits of an omnichannel overhaul is the ability to offer in-store pickup, often referred to as BOPIS (Buy Online, Pick Up In-Store). According to eMarketer’s 2025 Retail Fulfillment Study, retailers offering BOPIS options see an average 28% boost in online order volumes. The reason? Convenience, along with instant gratification.

But in-store pickup doesn’t just increase e-commerce demand—it also elevates in-store revenue. A 2024 McKinsey analysis found that 70% of customers who pick up a purchase in-store end up buying additional items while there, often making unplanned or impulse purchases. Target’s CFO, Michael Fiddelke, has repeatedly pointed to the company’s Drive Up and Order Pickup programs as significant drivers of incremental sales and margin gains. “Guests might come in to grab their online order but leave with two or three more items—beauty products, groceries, or seasonal décor,” he told investors on a midyear earnings call. “Every time we reduce friction, we see it pay off in the basket size.”

Lower Shipping Costs, Higher Margins Shipping expenses eat into margins, especially for mid-tier and big-box retailers where free shipping has become table stakes. When customers opt for in-store pickup, brands circumvent hefty last-mile delivery costs, boosting profit per transaction. According to a 2025 RBC Capital Markets survey, retailers that shifted at least 30% of their online orders to in-store pickup saw an 8–12% reduction in average shipping expenditure.

“We run the numbers every quarter,” says Tina Nguyen, Director of E-Commerce at a national home-goods chain. “Every BOPIS transaction saves us around $4 in shipping fees. Multiply that by tens of thousands of orders a week, and the margin lift is real.”

Real-Time Inventory Visibility Omnichannel success hinges on robust inventory management. Store associates and online shoppers alike need accurate, real-time visibility into what’s available and where. “That typically means RFID tagging, integrated warehouse systems, and some sophisticated forecasting algorithms,” explains Joseph Hsu, CEO of LogiForecast, a supply chain tech startup.

An IBM study from early 2024 showed that retailers investing in real-time inventory systems saw 25% fewer stock-outs and a 20% reduction in overstock. The net effect: higher sales from fewer lost opportunities and lower costs from unsold inventory. “When you know you can fulfill that online order from a nearby store,” Hsu notes, “you streamline your supply chain and boost profit. It’s a win-win.”

Personalization and Loyalty A less visible but equally potent benefit of omnichannel is the data retailers gain on shopper behavior across channels. This treasure trove of information allows for targeted marketing and personalized recommendations. Research from the Harvard Business Review found that 73% of customers prefer brands that use personal data to craft more relevant shopping experiences, leading to a 29% uptick in loyalty program sign-ups when retailers tailor offers to individual tastes and history.

From Starbucks’ app-based rewards (where purchases in-store, drive-thru, and online feed into the same loyalty wallet) to Nike’s membership model that merges physical store checkouts with app data, personalization drives repeat engagement. “The brilliance of omnichannel is that we can see the consumer’s entire journey—what they browse online, what they add to cart but don’t buy, how often they walk into the store,” says Daniel Webster, Head of Retail Innovation at a leading athletic footwear brand. “That insight translates to marketing that feels tailored, not spammy, and promotions that land at exactly the right moment.”

Standalone Concepts and Micro-Fulfillment Some retailers have taken the omnichannel leap by creating standalone pickup hubs or micro-fulfillment centers within existing footprints. Walmart’s automated pickup towers (rolling out to nearly 1,500 stores) illustrate this trend. Customers simply scan a code to retrieve their online order from a giant vending machine in the store’s lobby—speeding up collection times and freeing staff for other tasks. Walmart’s pilot program in Arkansas showed a 12% increase in online grocery sales in the first six months after deploying these pickup towers, accompanied by a double-digit reduction in wait times.

In the grocery sphere, micro-fulfillment centers are rising in popularity. Kroger’s partnership with Ocado to build high-tech warehouses means orders can be picked and packed in minutes, then shipped to a store or made ready for curbside pickup. Early trials suggest up to a 30% boost in e-commerce capacity, enabling these supermarkets to handle more orders simultaneously.

Beyond 2025: Sustaining Omnichannel Momentum While the benefits are clear, experts caution that success requires consistent investments. An omnichannel approach without top-tier analytics or staff training can quickly devolve into confusion—lost orders, product mismatches, and frustrated customers. “Execution is everything,” says Leila Goodman. “Retailers who treat omnichannel as a bolt-on function risk diminishing returns. Those who embed it deeply in supply chain, marketing, and store ops are the ones reaping big dividends.”

An NRF forecast for 2026 indicates that retailers who integrate advanced AI-driven fulfillment solutions stand to reduce operational costs by up to 10% while lifting overall sales 5–7%. Done correctly, omnichannel can evolve beyond pick-up counters to robust consumer ecosystems, bridging the digital and physical worlds in a way that fosters meaningful brand loyalty.

At a time when consumers are reevaluating their spending habits, retailers must offer convenience and value across every channel. The ability to order online, pick up in-store, and possibly discover new items on-site forms a flywheel of revenue generation—one that’s quantifiable in higher average order values, lower shipping costs, and stronger brand engagement. As 2025 unfolds, those who’ve made the leap to omnichannel will likely find themselves well-equipped to adapt—no matter how quickly consumer preferences change.