Retail apps developed with a “shopper-first mentality” can enhance a company’s brand across all phases of the customer journey including research, purchase and engagement, according to App Annie.

Such apps will become essential for retailers’ strategies as they use mobile to drive greater loyalty and spend from customers, the report said, adding that players in the retail space will benefit from a well-executed strategy.

Companies which deliver compelling apps that engage users, aid product discovery and reduce friction will be in a strong position to drive more transactions and higher spend as competition in the retail space in mobile intensifies.

In contrast, those who do will be under threat from their rivals.

Trends in UK, US, Japan
The report focused on three markets, UK, US and Japan, which were noted as key markets that also feature a number of differences. But the trio have one thing in common: Amazon leads the way in terms of downloads and monthly active users.

In Japan, though, Amazon has tough competition from local marketplace Rakuten Ichiba.

Download growth for the top ten retail apps was more than overall market growth in the US, UK and Japan (click image to enlarge).

download growth

The US experienced 1.3x growth year-on-year, driven by Wish and Geek, mobile-first apps from ContextLogic, which also performed well in the UK.

The report says the success of Wish and Geek comes from them using an algorithm to recommend products to customers based on their behaviour while using the app.

Chemist stores Walgreens and CVS Pharmacy made it to the US list, as “both apps enhance the customer journey” by offering features that streamline prescription refills and provide dosage reminders.

In the UK, chemist Boots also performed strongly, having “strengthened engagement by delivering personalised offers to customers for the products they regularly purchase,” the report noted.

Supermarket apps are most popular in the UK, the only market in the report with three such titles making it to the top ten. These apps are doing well because they “feature price comparison tools and online shopping lists that drive customers towards purchase”.

Meanwhile in Japan, point programmes that offer incentives to keep customers engaged and loyal are popular.

Bricks and clicks – retailers that sell goods in both physical brick and mortar stores and online – made up around 40 per cent of the top 10 apps in all three countries.

In the US and UK, mobile-first retailers made up around 20 per cent of downloads in the top 10 retail apps, around five times higher share than in Japan’s list.