Key Findings

The IQ distribution reveals a significant bifurcation in digital competence, as nearly half of the brands were categorized as Challenged or Feeble. Retailers with lower average price points performed better, suggesting high-end retailers are still hesitant to embrace digital channels.

Eighty-seven percent of the brands support e-commerce. Online-only retailers boast an average Digital IQ of 144 versus 91 for their brick-and-mortar peers. This discrepancy suggests that store-based European retailers lag in digital.

European department stores significantly trail their U.S counterparts in digital. Forty-two percent of department stores in the Index garnered IQ scores in the “Feeble” category, and one-third are not e-commerce enabled.

Retailers headquartered in the U.K. register higher Digital IQs than those from other countries. This finding mirrors macro trends of the nation’s swift e-commerce and digital adoption.

Engagement on Facebook lags. Many European retailers have established Facebook communities numbering in the millions, but they fall behind in creating engaging content and suffer the lowest interaction rates. Additionally, opportunities for monetization on the platform abound: Only four brands in the Index engage in full Facebook commerce.

iOS is the mobile platform of choice. Forty-seven percent and 30 percent of brands in the study offer iPhone and iPad apps, respectively. However, just 24 percent have optimized their sites for mobile.