John Barbee

The rise of omnichannel during the pandemic—fueled, in large part, by the meteoric rise of e-commerce—is no passing fad. In the United States, for example, online-grocery sales penetration as of June 2021 was three times above prepandemic levels, rising from low or middle single digits to low double digits. 1 In addition, consumers have elevated expectations: convenience and value were often cited as top reasons for shopping at a new retailer throughout the COVID-19 pandemic.

The disruptions in the global supply chain are the result of a confluence of factors—which means that retailers have to take action on multiple fronts if they want their store shelves stocked and online orders fulfilled on time. In this episode of the McKinsey on Consumer and Retail podcast, retail supply-chain experts John Barbee and Sarah Touse offer advice to retailers ahead of what’s shaping up to be another unusual holiday season. Subscribe to the podcast.

Retail has experienced more change over the past five years than in the prior 50. Indeed, the pace of change accelerated throughout the COVID-19 pandemic as retailers adapted to changes in consumption, channel shifts, 1 and rising customer expectations around speed and convenience. In fact, the race to shorten click-to-customer cycle time is arguably the single greatest influence on the shape of future omnichannel supply chains.