Argos has narrowly outperformed Tesco in the Digital Capability Index (DCI), a new ranking by Retail Week and The Grocer of 65 leading high street retailers. The DCI assesses how closely retailers' shopping features align with consumer demands. Argos, a pioneer of omnichannel shopping, excels in matching consumer preferences for in-store and online shopping experiences. With a multi-year transformation plan, Argos is set to launch a marketplace, offering a wider range of products and enhancing convenience. Graham Biggart, MD at Argos, expressed enthusiasm for the recognition of their efforts in improving the shopping experience, emphasizing the focus on products, value, and speed.
Tesco, Britain's largest retailer and owner of the Clubcard loyalty scheme, has long been an innovator. It offers features like rapid delivery, a membership scheme for online savings, and a marketplace for non-grocery products. Seven major grocers feature in the top 20 of the DCI, with some excelling across all metrics, like self-checkout and scan & shop options, while others excel in specific areas.
Sainsbury's, which is undergoing technology and data changes, ranks fifth in digital capability. It outperforms Tesco in customer experience and communication, offering more contact channels. Sainsbury's and Waitrose tie with Tesco in personalisation, with Tesco recently restructuring its head office to enhance personalisation capabilities. Lidl and Co-op score highly in customer communication, and Marks & Spencer and Iceland offer a wide range of payment options.
Adidas and Ikea complete the top five. Argos, despite being a potential acquisition target for JD.com, offers the most sophisticated high street shopping operation, with same-day delivery and a high website visit count. It is one of two retailers advertising British Sign Language (BSL) as a customer service option. The DCI is a joint ranking by Retail Week and The Grocer, combining research on features like returns, delivery speeds, and payment functions with a survey of 2,000 British adults.
The survey highlights a mismatch between consumer expectations and realistic brand offerings. Free online returns are the most demanded feature, penalising fashion retailers. Generative AI features are not a priority for shoppers, with only a small percentage valuing product advice chatbots. The DCI focuses on the alignment of advertised capabilities with consumer priorities, rather than digital strength.
