The Ripple Effect of A Single Purchase Reverberates Bottom Line

ICSC's new report reveals the “multiplying effect” of single transactions and how physical stores catalyze online spending — and vice versa.

Retail’s halo effect is still glowing strong, and if anything, it is multiplying. The International Council of Shopping Centers released its latest report, “Halo Effect II: Quantifying the Impact of Omnichannel,” which further quantifies the relationship between physical stores and incremental increases in online spending, and vice versa.

The report builds off of last year's report, which highlights the relevance of an omnichannel approach to retailing and quantifies its long-term impact. In this year's report, the ICSC probes further, analyzing 41 million credit and debit card transactions in conjunction with data from information technology and services firm, 1010data.

Delineating the differences between the first Halo report, Tom McGee, president and chief executive officer of ICSC, said in a statement: “This follow-up report puts a dollar amount on that relationship.” Identifying a “positive impact on total sales,” the overarching message is that, regardless of medium, consumers want a great experience.

Attributing an increase to the bottom line by way of omnichannel, as well as how online sales drive foot traffic and uplift emerging brands, the key findings from the report mark what is essentially a “multiplying effect” in supplementary spend, with a single transaction yielding notable gains. The research tracked the average “halo consumer” to find they spend $131 in store for every $100 online transaction in a 15-day window.

The ripple effect of one single shopping act means brands may feel the reverberation across multiple days and purchasing platforms. Over a month, an initial $100 online purchase will result in additional net online and in-store spending of $171, and vice versa — that $100 in-store purchase garners added online spend of $163, (over a 30-day period).

Enlisting the hype factor that many streetwear and sneaker brands have tapped for impending “drops,” emerging brands with digital presences can also generate awareness, traffic and excitement — online — with physical store debuts. For brands less than 10 years old, new store openings generate an average increase of 45 percent in web traffic, according to the report.

And the relevance of the clickand-collect shopper is not to be underestimated, as 67 percent of these shoppers buy additional items at the store when they pick up their online purchases.

But retailers be warned, as friction of any kind is inadvisable.

“Consumers today care about convenience and efficiency, so clickand-collect needs to be as seamless as possible,” said Melissa Gonzalez, chief executive officer and founder

The Lionesque Group to WWD, upon commenting on the report.

Regardless, as omnichannel's multiplier effect plays out more advantageously, brands and retailers are tasked with an ultimatum: to “seduce” or “upset” shoppers, as Gonzalez informed.