Petco's Connected Retail experience is designed for maximum convenience while leveraging the pet category's high-engagement nature. Digital and in-store channels are smoothly shoppable for those making quick repeat purchases for their pet's favorite products and those interested in discovering new items to add to their regimen. Simultaneously, the retailer's app is significantly customizable, depending specifically on the pet for whom you're browsing. After downloading the app, there is the opportunity upfront to provide detailed information regarding the end user, ensuring a tailored, educational and enjoyable experience. The ability to sort items by same-day delivery and day-of onsite pickup is also helpful, considering this is often a space where running out of kibble creates an urgent need. Now that consumers are returning to brick-and-mortar stores at near pre-pandemic levels, we expect to see Petco's digital channels further augment physical store shopping. For example, customers could use the app to book more than grooming appointments, like in-store treat-making classes or hosted mixers for owners of a particular type of pet. On the digital side, owners could join online Q&A sessions via the app or the site to get their concerns answered by an expert holding office hours for individual species or breeds.

Best Buy's shopping experiences across all channels are organized for efficient browsing. They're creatively designed for the way resourceful consumers shop in this space. The ability to "build your bundle" by opting into smart suggested supplementary items and browse "open box" and outlet items within the same platform are just a few examples of how the shopper journey is designed to align with consumer behaviors. Tutorials for product setups and virtual interactions with sales associates for further installation questions prove that the retailer understands the importance of providing seamless customer service. Overall, Best Buy's model has evolved with the times while retaining some of the conventional tactics that keep customers engaged. While consumers will still need to test and compare some of Best Buy's most expensive items in stores, looking forward, digital channels could be better facilitators of that in-store experience. In the future, we expect the virtual channels to encourage bookable brick-and-mortar visits where shoppers are able to test different items in private appointments.

We were not surprised to see Home Depot among our best practice brands again this year. The app and site are advanced, quickly navigating shoppers to the aisles and materials they need for home improvement. From consultations to installation, Home Depot has a reputation for empowering its shoppers in a category where that feeling can be rare. However, Home Depot shoppers are usually on mission-oriented trips, and store associates are often tied up in time-consuming conversations with customers, causing delays in stores. We believe the next wave of the app could better support in-person, store-based interactions with employees. If the app matched customers and their needs with free associates on the floor with the relevant areas of expertise, wait times for assistance could decrease, and conversations could be efficiently optimized.

Target continues to impress us year after year. They perpetually demonstrate that they fully understand their customers' shopping behaviors and needs. The ability to easily shop past orders, set up "My Usuals" in the app, and browse #TargetStyle on the website are stand-out features that exemplify how aware Target is of the fact that it is a retailer for both commoditized necessities and trendy, fun purchases. Given how loyal consumers are to the brand, we anticipate social and/or content-based commerce to be the next big frontier for this cutting-edge retailer to conquer in a never-before-seen way. Whether that's via sponsored, shoppable streaming or building a TV-like channel into its app- we know Target fans would tune into a branded content platform.

Apple’s brick-and-mortar and digital channels make shopping seamless and engaging. The retailer’s instructional videos walking consumers through various product spec decisions on the website significantly differentiate Apple, and we’d love to see that content on the app. That’s not to say that the app lacks visual appeal and interactivity. The app, understandably, is designed less like a shopping app and more like a game, which also maintains Apple’s status as non-conforming in retail. Apple’s footprint is increasingly empowering to the customer, and we expect all channels to become so utilitarian in the future that they are as close to self-service as the category allows.

Sephora consistently wins customers over with its loyalty program and premium in-store experience. The retailer repeatedly fosters a sense of community among patrons, and the app and website augment that sense of belonging. Pragmatically, there are productive ways consumers can filter their path to purchase, which is a testament to their signature efficient creativity for which the brand is known. Now that pandemic restrictions have lifted, and consumers are increasingly interested in visiting brick-and-mortar, we would love to see store associates given the ability to support shoppers by making product recommendations within the app. Sephora is known for hiring talented, sociable staff, so leveraging technology to extend customer relationships feels like a winning next step.

Nike famously has a pristinely beautiful visual experience for shoppers across all channels. And with an intricate help section and chat function on its desktop and mobile sites, the retailer is dedicated to assisting shoppers. Being a Nike member has wide-ranging perks, from exclusive drop information to free shipping. We commend the retailer for being so persuasive in building and retaining loyalty. Overall, Nike is unwaveringly one of our favorite retailers because of how the channels operate, like a social media account we’d love to follow. The “How others are wearing it” section below an item on a product page, showcasing user-generated content from customers who have posted pictures of the item, further sends the message that the retailers’ channels are meant to function like social media. Considering that Nike was among the first to provide one-to-one customization, we hope to see more innovation at the personalized level for loyal customers when it comes to product development in shoes, sizing, and apparel.

Ulta has made aesthetic changes to its site and app since last year that make for easy, educated decision-making. Beauty is a category where product details matter greatly. The upgrades made to the retailer’s digital channels greatly facilitate the learning journey. The newer “Conscious Beauty” labels on items facilitate values-based shopping, and the comprehensive list-like product breakdowns brilliantly circumvent the need for hopping over to a third-party platform in search of key research to solidify the buy. We’re also big fans of the “SPARKED” section, where users can discover emerging brands disrupting the beauty space. Since ULTA is so strong at bundling and suggesting items aligned to the shopper, we would be delighted to see a future that includes uploading a soon-to-be-worn outfit to the retailer’s app so that the brand could match color cosmetics to the upcoming look.

Simply put, IKEA's virtual channels and in-store experiences are fun. For those heavily involved in the decorating and furnishing decisions of the household, there are ample opportunities to experiment. Both brick-and-mortar and digital are designed to inspire. They are also effective for those who want a purely efficient purchase path. The IKEA Kreativ destination within the app, where shoppers can scan their own spaces and design them by dropping in IKEA furniture, is impressive. It's the type of innovation home retailers need to encourage customers to play. Furthermore, this retailer has truly delved into how customers may want more from the brand, from the marketplace to bookable service appointments. Regarding what could be next, this is one retailer where more innovation could favor the logistical components of the shopping and post-purchase stages. For example, given how busy stores trend on weekends, location-specific data would be helpful to share digitally so that shoppers can most conveniently plan their visits.

Abercromie's presence in our top rankings is a testament to the impressive comeback the retailer has made over the last couple of years. Both the app and site offer great suggestions for styling each piece, and the customer ratings empower shoppers to settle on the correct size. The ability to filter search results based on availability at a customer's local store and an option for same-day delivery is ultra-convenient. It crystallizes the message that this is the brand to shop for specific fashion moments. The app's modern capabilities, such as incentivizing loyalty users with more reward points by adding to their profile and allowing payment via Venmo, demonstrate the ease baked into the design. Knowing that influencers and social media are such an important aspect of Abercrombie’s strategy, we’d love to see the tastemakers they leverage play more of a role on their site and app.