Omnichannel

Labels: [Sourced] checked against a source listed at the end. [General] standard industry knowledge. [Our view] opinion, labelled as such. [Illustrative] made-up numbers to teach an idea.

1. The story: Target's parking-lot experiment

Target first partnered with San Francisco-based Curbside in 2014, testing pick-up in parking lots at 11 Bay Area stores. In October 2017 it was testing "Drive Up" in 50 Minnesota stores, trailing Wal-Mart. [Sourced: CNBC, Oct 3 2017] By August 30, 2019, Drive Up was in all 50 states and reached 1,750 stores, less than two years after launch. [Sourced: Retail Dive] The store, which looked like a cost, became a tiny warehouse and pickup point. [Our view]

2. The one idea

Shoppers don't think in channels. They want to browse in one place, buy in another and return in a third. Omnichannel means one inventory, one customer, one price story across every door. [General]

3. The kitchen-table version

Your bank: app, branch, ATM. Same account, same balance everywhere. When one door shows a different balance, you stop trusting it.

4. The common services [General]

Ship to home, ship from store, buy online pick up in store (BOPIS), curbside, returns in store, endless aisle (order in store for home delivery).

5. Why it is hard

You need one view of stock (Modules 3, 9). If online shows 4 but the store has 0, the order fails.
Fulfillment choice matters for cost (Modules 8, 12).
Returns cross channels (Module 12B).

6. How big is online?

US retail e-commerce sales in Q2 2026 were estimated at $340.2 billion, seasonally adjusted, out of $1,986.5 billion in total retail sales, about 17% (17.1% when we divide; FRED lists 17.1%). The Census Bureau notes these estimates will be revised with the Q3 2026 release on November 19, 2026, so treat the share as "about 17%". [Sourced: US Census Bureau, Aug 18, 2026 and its Sept 28, 2026 notice; FRED] So most retail still happens in stores, which is why stores matter to online strategy. [Our view]

7. Worked example: pickup versus delivery [Illustrative]

An order of $60 with $22 gross margin. Delivered to home: fulfillment cost $9, leaves $13. Customer picks up in store: cost $2, leaves $20, plus a chance of an extra purchase in store. Pickup earns $7 more (9 minus 2). The numbers are made up, but the direction is why retailers push pickup. [Our view]

8. Where AI fits

Choosing which node fulfills each order; predicting pickup demand by hour; reading intent across channels; assistants that shop across stores (Module 21). [General]

9. Exercise

List every way you can get your favorite item from your favorite retailer. Which is cheapest for them? For you?

10. Quiz

What does omnichannel require? Shared inventory and customer data across doors.
Why do retailers like pickup? Lower fulfillment cost; extra store visits.
Share of US retail sales that is e-commerce in Q2 2026? About 17%.