Yesterday, Retail Brew hosted its first 2022 edition of The Checkout, a conversation about the evolution of omnichannel retail.

I (Katishi here) spoke with Bill Kiss, Ace Hardware’s head of digital and retail strategy, about the company’s omnichannel reboot, which predated the pandemic in many ways.

When he first joined Ace in 2016, Kiss said that a major challenge was creating an integrated retail model that was “channel agnostic”—one that allowed customers to shop, purchase, and return items freely without disrupting the existing business model. Here’s some of what they did.

• Ace replatformed its website to make sure it was fully integrated into stores.
• In 2019, Ace introduced a buy online, deliver from store option, after it saw a shift toward free and fast delivery.

“This omnichannel, channel-agnostic model is really just a way to better serve our customers on their terms,” Kiss told us. “A lot of the burden is beared by our stores. When the rubber meets the road and product needs to be fulfilled, that helpful promise must be delivered.”

Kiss admitted that Ace does face some challenges in replicating its in-store shopping experience among its digital assets. Curbside pickup wasn’t on the company’s roadmap before the pandemic, but once that offering exploded, he said the company created its version within 72 hours. It started out “as a 5% or 10% opportunity of the business and became 20% and 30%.”

Eyes open: Kiss said Ace pays attention to what other retailers are doing right when it comes to bolstering their omnichannel strategy, pointing to Best Buy as a model for curbside pickup.

• “If you placed an order and picked it up in store, you found out how they reconfigured their store environment such that they still have checkout lanes…but they also created and expanded their service hub,” Kiss noted.

Looking ahead…Ace is investing in its supply chain to bring more products to the consumer faster—and also telling them that it’s better done online or picked up in a nearby store.

“We’re thinking about the entire value chain. Honestly, that’s where really good companies evolve their model,” Kiss said. “When I hear the word ‘user experience,’ especially in a digital context, it’s ‘Well, this is the website.’ It stops when you hit the checkout button. That’s not how we think about it. It’s the full fulfillment chain.”

Check out the full interview with Ace Hardware’s Bill Kiss here.—KM

As the pandemic was changing the way consumers shop and think about fashion, former Stitch Fix COO Julie Bornstein and Google alum Amit Aggarwal were waiting in the wings with a tech alternative: The Yes, which takes an algorithm-driven approach to online shopping with quizzes that fine-tune product recommendations.

Two years in, the company is now focusing on loyalty. And with Bornstein on board—who helped create Sephora’s Beauty Insider program, a gold standard in the industry for customer rewards—The Yes has a handy blueprint.

Bornstein spoke with Retail Brew about what makes a compelling loyalty program.

Start small: Simplicity is the first step to getting consumers on board. “It has to be easy to understand,” Bornstein told us. “The more complicated the program is, the more you just lose people. And the harder it is to sign up, the more hoops you have, you lose people.”

• The Yes essentially removed the added to-do: When a shopper creates an account, they’re automatically enrolled in rewards as well.

Retain and reward: For a loyalty program to succeed, Bornstein said that retailers must focus on their most-engaged customers. “If you look at pretty much any retail business, the majority of the business is done by a subset of the customers,” she said. “Those people are critical to retain, and they’re critical to reward.”

Bornstein said it’s a mistake to favor new customers when it comes to rewards. Repeat customers want to be acknowledged for their business, and they might look elsewhere if they don’t get that recognition.

• “You learn there’s a separation. There are some people who are super users…they’re going to be looking for more over time,” Bornstein said.

Click here to read more.—JG

Today’s top retail reads.

If you build it: The founders of accessories brand Dagne Dover talk about creating a “product-first” company. (Glossy)

Scale school: Amazon aggregators and holding companies are buying up beauty brands that are sold exclusively on the online marketplace. But how do they grow beyond the platform? (Business of Fashion)

Charge it: Gen Z has options when it comes to payment methods, but are slowly adopting credit cards. (Retail Dive)

Close the experience gap. The 2022 Ecommerce Relevance Report from Coveo shows that consumers are looking for a personalized online-shopping experience and the ability to find what they’re looking for in just a few clicks. Get the full report here.*

^{*This is sponsored advertising content.}

The numbers you need to know.

Consumers want their goods delivered to their door, and they want them to arrive, like, yesterday. According to a new report from UPS Capital, 97% of SMBs think that consumers will want direct control over their shipping experience in the future. Better yet, 80% of consumers reported favoring shipping perks—like real-time tracking and the ability to choose a delivery date—over the classic two-day or free shipping options.

• The report shows that 69% of consumers will even pay for enhanced personalization when it comes to shipping.

Drop, ship, and jump: Drop-shipping, which involves moving goods directly from manufacturer to consumer, is a strategy many SMBs (86%) are utilizing to meet demands. That said, 66% of surveyed SMBs reported more loss, theft, or damage with drop-shipments compared to shipments from their business.

Not for nothing: Forget “don’t blame the messenger,” 66% of consumers are more likely to leave a negative review for an SMB if a package never arrives or arrives damaged. Meanwhile, 40% would write a bad review for an SMB if a shipment was delayed or took longer than expected.—JG

Catch up on the Retail Brew stories you may have missed.

• Buy online, ship to store doesn’t get much glory. Here’s why it should
• Can QR codes help cut down on lines?
• What to watch at Shoptalk 2022