Omnichannel Excellence in the Nordics: Overcoming Investment Barriers and Driving Profitability

The Nordic Retail Challenge: Knowing What to Do, Struggling to Act

Retailers across Denmark, Norway, and Sweden have long been recognized for their digital maturity and forward-thinking consumer experiences. Yet, recent research reveals a paradox: while Nordic retail leaders overwhelmingly understand the steps needed to improve e-commerce profitability, they face above-average barriers to making the necessary investments and executing at scale. In fact, 71% of Nordic retail decision-makers report struggling to invest in the improvements they know are required—significantly higher than the global average.

This gap between strategic intent and operational reality is particularly acute in the Nordics, where expectations for e-commerce profit growth are among the lowest globally. Only 59% of Nordic retailers expect e-commerce profit to improve in the coming year, compared to 73% globally. The result? A region where digital ambition is high, but the path to profitable omnichannel transformation is fraught with unique market, consumer, and operational challenges.

Market Dynamics and Consumer Behaviors in the Nordics

Nordic consumers are among the world’s most digitally savvy, with high rates of internet penetration, mobile usage, and openness to new retail formats. However, their expectations are equally elevated:

• Seamless omnichannel experiences: Nordic shoppers expect to move effortlessly between digital and physical channels, with real-time inventory visibility, flexible fulfillment, and consistent service.
• Sustainability and transparency: Environmental and ethical considerations are deeply embedded in purchasing decisions, influencing both product selection and delivery preferences.
• Value and convenience: While willing to pay for quality, Nordic consumers are price-conscious and demand frictionless, reliable service—especially in logistics and returns.

These expectations put pressure on retailers to deliver integrated, data-driven experiences while maintaining cost discipline and operational efficiency.

Operational Barriers: Why Investment Lags Execution

Despite clear strategic priorities, Nordic retailers face several barriers to executing profitable digital transformation:

• Cost pressures and margin erosion: High labor costs, expensive last-mile logistics (especially in sparsely populated areas), and rising return rates make e-commerce less profitable than in-store sales for many Nordic retailers. In the region, 42% say e-commerce is less profitable than brick-and-mortar, and 34% report it is not currently profitable.
• Legacy systems and organizational silos: Many retailers struggle with fragmented technology stacks and siloed teams, making it difficult to deliver unified customer experiences or optimize supply chains end-to-end.
• Talent and skills gaps: The rapid pace of digital innovation has outstripped the availability of specialized talent in areas like data analytics, AI, and supply chain optimization.
• Investment prioritization: With limited resources, retailers often face tough choices between upgrading core systems, investing in new customer experiences, or modernizing logistics.

Where Nordic Retailers See the Greatest Potential

Despite these challenges, Nordic retail leaders are clear on where investments will have the most impact:

• Digital customer experience: 53% of decision-makers cite this as the top area for boosting profitability, with a focus on holistic omnichannel journeys, mobile apps, and social selling.
• Omnichannel commerce: 50% see this as critical, prioritizing replatforming, marketplace expansion, and dynamic pricing.
• Supply chain modernization: 43% highlight the need for shipping optimization, multiple delivery options, and micro-fulfillment centers to reduce costs and improve service.

Strategies for Omnichannel Excellence: Nordic Success Stories and Recommendations

1. Holistic Omnichannel Integration

Nordic retailers who excel are those who break down silos between digital and physical channels, creating a single view of the customer and inventory. This enables:

• Real-time inventory visibility across stores and online
• Flexible fulfillment options (BOPIS, curbside, home delivery)
• Consistent promotions and loyalty programs across channels

Actionable Recommendation:

• Invest in unified commerce platforms that connect POS, e-commerce, and supply chain data. Prioritize projects that enable seamless customer journeys and empower store associates with digital tools.

2. Supply Chain and Fulfillment Optimization

Given the high cost of logistics in the Nordics, leading retailers are:

• Optimizing shipping and delivery partner networks
• Offering multiple shipping options to balance speed and cost
• Exploring micro-fulfillment centers and automated solutions to improve efficiency

Actionable Recommendation:

• Use data analytics to identify cost drivers in the supply chain. Pilot micro-fulfillment or regional hubs to reduce last-mile costs, and incentivize customers to choose more cost-effective delivery or pickup options.

3. Data-Driven Personalization and Loyalty

Nordic consumers respond to personalized offers and experiences, but only when they are relevant and respectful of privacy. Retailers are leveraging first-party data to:

• Deliver targeted promotions and product recommendations
• Enhance loyalty programs with exclusive benefits and sustainability rewards
• Improve customer service through self-service tools and chat-based support

Actionable Recommendation:

• Build robust data governance and analytics capabilities. Use AI to personalize experiences, but ensure transparency and control for customers regarding their data.

4. Agile Organizational Models

To close the gap between strategy and execution, successful Nordic retailers are:

• Creating cross-functional teams that span digital, store operations, and supply chain
• Empowering local teams to test and scale new initiatives quickly
• Investing in upskilling and attracting digital talent

Actionable Recommendation:

• Foster a culture of experimentation and continuous improvement. Break down silos by aligning incentives and KPIs across channels and functions.

Case Example: Nordic Retailers Leading the Way

While many Nordic retailers face investment barriers, some are setting the standard for omnichannel excellence:

• Grocery chains in the region have prioritized digitizing the store, with investments in robotics for inventory management and in-store fulfillment, as well as supply chain modernization to support rapid delivery and click-and-collect.
• Apparel and specialty retailers are leveraging unified commerce platforms to offer real-time inventory, flexible returns, and personalized mobile experiences, driving both customer satisfaction and operational efficiency.

Closing the Gap: From Knowing to Doing

The Nordic retail sector is at a crossroads. The path to profitable omnichannel transformation is clear, but execution requires overcoming entrenched barriers. By focusing on integrated technology, supply chain innovation, data-driven personalization, and agile ways of working, Nordic retailers can bridge the gap between knowing what to do and actually delivering profitable, customer-centric digital experiences.

Publicis Sapient partners with leading Nordic retailers to unlock this potential—helping them prioritize investments, modernize operations, and build the capabilities needed to thrive in a rapidly evolving market. The time to act is now: those who move decisively will set the standard for omnichannel excellence in the Nordics and beyond.