Retailers will win holidays with omnichannel

This holiday season will bear witness to a digital shift in the retail world as more retailers and shoppers than ever embrace what's known as the omnichannel experience.

It's a transition that started several years ago, as more consumers have gained access to smartphones and tablets, and are comfortable using them to shop.

Now, more than two-thirds of shoppers can be considered omnichannel consumers, according to PwC's holiday shopping forecast out Tuesday. These shoppers research products and make purchases using a combination of technology, online platforms and physical stores. "It's very clear to us that retailers that are leading in the e-commerce space are starting to win a bigger share of the consumer wallet," says Steve Barr, U.S. retail and consumer practice leader for PwC.

The National Retail Federation expects holiday sales to be up 4.1% this year to $616.9 billion, the organization announced Tuesday. That's the largest jump in three years and up a percentage point over last year's actual sales. The retail group expects online sales to grow between 8% and 11%. But Brad Wilson, founder and CEO of Brad's Deals, says that projection is low. He expects at least double-digit growth, and closer to 20% growth on Cyber Monday.

PwC finds that 41% of shoppers plan to spend more online this year than they did last year, while 43% of all spending will be online, compared with 42% last year. Nearly 40% of consumers are what PwC calls trade-off shoppers: They do most of their research online and will buy online if the product is cheaper than in stores; another 32% are primarily online shoppers; while 29% of shoppers still prefer going into stores, but even they are going online a little bit.

"There's much more online planning of the overall holiday shopping experience," Barr says.

Some retailers have already rolled out new online features with hopes of enticing holiday shoppers.

• Amazon is letting customers connect their Amazon.com accounts to Twitter and automatically add products they discover through tweets to their Amazon wishlist by using the hashtag #AmazonWishList in response to a tweet with a product link in it.

• Staples recently adopted a same-day in-store pickup program for online orders ahead of the fall shopping season. Retailers including Target and Walmart already offer in-store pickup options for online orders.

• Kmart gave early shoppers the chance for no-money-down layaway last month on holiday purchases both online and in stores. Customers can pick out items for purchase but pay for them over time with no interest.

In a retail report out earlier this year, PwC found that technology such as in-store Wi-Fi and sales staff that check out customers away from registers using mobile devices are some of the most popular features with customers.

One thing that won't change this year is the severity of the price competition among retailers. Expect steep discounts and copious coupon codes, Wilson says. Still, retailers that offer superior shopping experiences may gain an edge in the price war, Barr says.

"Some of the most successful omnichannel retailers are winning based on innovation and product selection and not competing on price," he says.