Chapter 10: The Future of OMO Strategies for Home Improvement Stores and Drugstores
- Apr 14
- 3 min read
OMO (Online Merge Offline) is no longer simply about connecting channels—it is evolving into a framework for designing how retailers support consumers’ everyday lives. Because drugstores and home improvement stores serve fundamentally different customer needs, their future OMO strategies will continue to diverge in meaningful ways.
This chapter explores the future direction of OMO strategies based on real-world data and practices from leading companies such as Matsumoto Kiyoshi, Tsuruha Holdings, Sundrug, Cosmos Pharmaceutical, as well as Cainz, DCM Holdings, and Kohnan Shoji.
1. The Future of Drugstores: Advancing the “Daily Life Repeat Loop”
The future of OMO in drugstores lies in refining and expanding what can be described as the “daily life repeat loop.”
At Matsumoto Kiyoshi, app members visit stores approximately 1.4 times more frequently than non-members, and their average transaction value is about 15% higher. This reflects a system where inventory checks, reminders, coupons, and health information continuously trigger store visits and additional purchases.
Going forward, this structure is expected to evolve into a more integrated “lifecycle purchasing model,” linking pharmaceuticals, supplements, daily necessities, and food into a seamless experience across online and offline channels. Customers will increasingly plan purchases online and complete them in-store, with both touchpoints functioning as a unified system.
Similarly, Tsuruha Holdings is leveraging data across prescriptions, daily goods, and health products to increase both visit frequency and category breadth. The next stage of development will involve optimizing the entire lifestyle of customers—integrating health management and daily consumption into a single OMO framework.
2. The Future of Home Improvement Stores: Deepening “Project Support”
In contrast, the evolution of OMO in home improvement stores centers on enhancing “project-based support.”
At Cainz, online inventory searches are already driving demand in categories such as DIY, renovation, disaster preparedness, and gardening. High store pickup rates for specialized products indicate that customers are adopting a “plan online, execute in-store” purchasing process.
In the future, this process will go beyond simple inventory checks. Online platforms will increasingly support project planning—including use cases, construction methods, and product combinations—while physical stores will serve as spaces for product verification and expert consultation.
DCM Holdings is also advancing in this direction by integrating search data into merchandising and customer engagement. The next phase will involve more sophisticated, purpose-driven store layouts and advisory services that align with customers’ project needs.
3. Data and AI Integration: The Next Stage of OMO
The next phase of OMO evolution lies in the integration of data and AI.
By combining data from apps, e-commerce platforms, and physical stores, retailers can use AI to predict customer behavior—such as when they are likely to visit, what they are likely to purchase, and what additional items they may need. This enables real-time optimization of inventory, store layouts, and customer interactions.
In drugstores, AI will enhance the precision of repeat purchase timing and health-related recommendations. In home improvement stores, it will enable more accurate project suggestions and product combinations based on past behavior.
OMO is thus shifting from intuition-based operations to data-driven systems with high reproducibility and scalability.
4. The Convergence of Stores and E-Commerce: Redefining the “Life Hub”
Ultimately, the evolution of OMO will redefine the role of physical stores.
In drugstores, stores are becoming “life hubs” that support health management and daily living, with apps and e-commerce acting as complementary tools. In home improvement stores, physical locations are evolving into centers for consultation, experience, and execution, while online channels handle planning and preparation.
In both cases, stores and e-commerce are no longer separate or competing channels—they are integrated touchpoints designed to solve customer problems holistically.
5. Conclusion: The Future of OMO Lies in Experience Design
The future of OMO is not about connecting channels—it is about designing customer experiences.
Drugstores will continue to refine the “repeat loop” of daily consumption, while home improvement stores will deepen their “project support” capabilities. Each sector will evolve OMO strategies based on its unique strengths, leading to a tighter integration of online and offline experiences.
OMO is not merely a digital initiative. It is a framework for designing how customers think, act, and purchase. The true competitive landscape is no longer defined by “where to buy,” but by “how to support everyday life.”
References
Ministry of Economy, Trade and Industry, FY2024 E-Commerce Market Survey
https://www.meti.go.jp/press/2024/08/20240830005/20240830005.html
MatsukiyoCocokara & Co., Investor Relations / Integrated Reports
Tsuruha Holdings, Investor Relations / Financial Reports
Sundrug, Investor Relations
Cosmos Pharmaceutical, Investor Relations
Cainz Corporation, Corporate Information
DCM Holdings, Investor Relations / Medium-Term Management Plan
Kohnan Shoji, Investor Relations
Japan DIY Homecenter Association, Market Statistics and Industry Reports
Ministry of Internal Affairs and Communications, Family Income and Expenditure Survey
Dentsu Digital, OMO / Customer Experience Reports
Nomura Research Institute, Retail DX and AI Utilization Reports
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