Enterprise retailers today are increasingly realizing that a mobile-friendly website alone is not enough. While a responsive website is essential for reaching customers on smartphones, the mobile app has emerged as a core revenue and loyalty channel in retail. In this deep-dive, we’ll explain why having an enterprise retail app is critical – and how it goes beyond what a mobile website can offer. We’ll look at the growth of mobile commerce, compare native apps vs. mobile web experiences, and showcase how top retail brands leverage apps to drive sales and customer loyalty.

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The Mobile Commerce Boom in Retail

Mobile commerce (or m-commerce) has surged over the past few years and is now mainstream in retail. Smartphones have become the primary way many consumers shop, research products, and interact with brands. A few stats put this in perspective:

• Majority of Online Sales on Mobile: Globally, around 59% of all online retail sales are now happening on mobile devices in 2025 – roughly a $4 trillion market. In the US, mobile is expected to account for about 44% of e-commerce sales this year, up from just over 40% a couple of years ago.
• Traffic Dominated by Mobile: Retailers are seeing as much as 70–80% of their web traffic coming from smartphones and tablets. Shoppers are browsing on mobile devices more than desktops, even if they may complete some purchases later on larger screens.
• Mobile Shopping Behavior: Approximately 76% of adults in the US (and well over 1.5 billion people worldwide) have made a purchase on their smartphone. Consumers regularly use phones to compare prices, read reviews, and search for stores – even when standing in a physical store aisle.

In short, mobile isn’t a niche channel – it’s now the default. For enterprise retailers, this means a mobile-first approach is crucial. But does a mobile website alone suffice? The data suggests otherwise. Mobile websites capture broad traffic, but native apps are where the most engaged and valuable customers tend to migrate. Retailers that only rely on a mobile site could be missing out on higher conversions and loyalty-driven sales that apps deliver.

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Native App vs. Mobile Website: Key Differences

Before diving into results, it’s important to understand why a native app offers a different experience than a mobile website. Both serve shoppers on a phone, but the capabilities and user experience differ significantly:

• Installation & Icon Presence: A native app is downloaded and installed on the user’s device, living as an icon on their home screen. This means your brand is always front-of-mind whenever they scroll through their phone. In contrast, a mobile website requires the user to open a browser and navigate to your site; there’s no persistent presence or one-tap access.
• Performance & Speed: Mobile apps are typically faster and smoother. Once installed, an app can preload content and use device hardware optimisations. Apps load pages 2–3× quicker than mobile web pages on average. In comparison, even responsive websites depend on network each time and can feel sluggish or clunky on small screens, especially if not perfectly optimised.
• Personalised Experience: Apps allow customers to stay logged in and maintain personal preferences by default. This enables highly personalised content – product recommendations, saved carts, loyalty points, etc. While a mobile web can also personalise to an extent, users often have to log in each visit. The app provides a tailored, logged-in experience every time, with data stored locally and in the cloud.
• Using Device Features: A native app can directly leverage smartphone features like the camera (for scanning barcodes or credit cards), GPS (for store location and curbside pickup), microphone, push notifications, and more. For example, a retail app might let users scan their credit card with the camera to enter payment details in seconds – avoiding tedious typing on a small screen. It might use GPS to show nearby store inventory or send location-based offers. Mobile websites have limited access to these native features and cannot integrate as deeply with the device.
• Offline Capability: If a customer is offline or on a spotty connection, a mobile website essentially doesn’t work. An app, however, can cache content and offer offline functionality. For instance, an app can save a user’s browsing history, wishlist, or even enable browsing of preloaded product catalogs without internet. This makes the shopping experience more continuous and reliable.
• Push Notifications: Perhaps one of the biggest differentiators, apps can send push notifications – brief alerts that pop up on the user’s phone screen. This direct communication channel is a game-changer for engagement (more on this later). Mobile websites cannot reach out to users proactively in the same way (aside from more limited email or SMS, which require separate opt-ins).
• User Interface & Convenience: Apps offer more flexibility in UI design for small screens. Retail apps can implement intuitive gestures, custom navigation, and app-specific interfaces that are streamlined for mobile shopping. In contrast, a mobile site is constrained by browser UI (back button, refresh, URL bar) and is essentially a mini web page – which can be less convenient. In surveys, consumers often cite “convenience” and smoother usability as top reasons they prefer apps over mobile sites for shopping.

In summary, a native app provides a faster, more personalised, and engaging experience by leveraging the smartphone’s capabilities, whereas a mobile website is about broad accessibility and discoverability (important for first-time or infrequent visitors, but not as sticky). Both are important in a retailer’s digital strategy, but they serve different purposes. The mobile website casts a wide net for search traffic and casual browsers; the mobile app converts and retains the most loyal customers.

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Apps Drive Higher Conversion and Sales than Mobile Web

One of the most compelling reasons enterprise retailers invest in their own apps is the substantial lift in conversion rates and sales that apps deliver. Shoppers who download a retail app typically exhibit much higher buying intent and frequency. Let’s look at the evidence:

This chart illustrates how retail mobile apps achieve significantly higher conversion rates than mobile websites across industries. For example, in the retail sector (third from left), shopping apps converted almost 94% higher than mobile sites on average, while app conversion lifts in other sectors like on-demand services exceeded 300%. Overall, apps convert about 1.5× to 3× better than mobile web experiences, meaning a far greater percentage of app users end up making purchases.

• Better Conversion Rates: Multiple studies confirm that mobile apps convert at a much higher rate than mobile websites. In one analysis, shopping apps showed conversion rates roughly 157% higher than mobile sites on average. Retailers with both channels have seen, for instance, conversion rates of ~18% in-app vs. 4% on mobile web for the same store. That’s a 4× difference in converting visitors to buyers. Essentially, if a customer is using the app, they are far more likely to complete a purchase than if they were on the mobile site.
• Higher Spend per Customer: Apps often lead to higher basket sizes and repeat purchases. Shoppers tend to browse more items per session in apps (some studies show 4× more products viewed per visit) and as a result, average order values are around 15% higher on apps than on mobile browsers. The app environment encourages deeper engagement – users might scroll through personalised recommendations, see targeted deals, and add more to their cart.
• Lower Cart Abandonment: One of the biggest challenges in e-commerce is cart abandonment, especially on mobile devices where small screens and slow sites deter checkout. Retail apps help solve this. The cart abandonment rate on shopping apps is dramatically lower – about 20% – versus an estimated 85% abandonment rate on mobile websites. In other words, nearly all shoppers drop off before purchase on a typical mobile site, whereas a well-designed app retains most of them through checkout. With an app, features like stored payment info, one-click checkout, and smoother flow lead to more completed orders.
• Faster, Streamlined Checkout: Apps remove many points of friction. Since the user is likely already logged in and their shipping and payment details can be saved securely, checking out on an app can be a few taps. Many retail apps integrate payment options like Apple Pay or one-touch payments. This convenience drastically improves conversion. By contrast, on a mobile site a user might have to re-enter details or navigate multi-step forms, increasing the chances they give up. Speed matters: if pages load slowly or forms are hard to fill, users bail. Apps avoid those issues with snappier performance and a guided, mobile-optimised flow.
• More Frequent Usage: Getting a customer to download your app is effectively securing a loyal user. App users tend to visit and shop more often. In fact, brands report that customers who have their app shop nearly twice as often as those who don’t. For example, Walmart found that shoppers using the Walmart app visited stores 2× more frequently and spent ~40% more overall compared to the average shopper. This increased engagement directly boosts sales. The app becomes a channel to capture a larger share of the customer’s wallet over time.

Why do apps perform so much better? It comes down to user experience and engagement. An app user is typically a more committed customer (they took the effort to download and keep the app), and the app makes it easy for them to buy repeatedly. Everything is a tap away – no logging in, no waiting for pages to load, and often personalised content that matches their interests. The ease and speed mean more browsing and impulse adds.

In essence, the app transforms a casual mobile shopper into a high-value customer by removing friction. Even though mobile web traffic might be higher in volume, the app users drive a disproportionate share of revenue. Many retailers observe that a small percentage of customers using the app can account for the majority of mobile sales. It’s a classic 80/20 rule scenario, where the app engages the top-tier customers who generate more sales.

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Mobile Apps as a Loyalty and Engagement Channel

Beyond immediate conversion lift, a mobile app really shines as a loyalty and engagement platform. Enterprise retailers often use their apps to cultivate deeper relationships with customers, increasing lifetime value and retention. Here’s how apps boost loyalty in ways a mobile site can’t:

• Seamless Loyalty Program Integration: Retail apps typically integrate loyalty cards, points, and rewards right into the experience. Customers can track their points, rewards, and offers in-app without carrying a separate card. For example, many supermarket chains in Australia (e.g. Woolworths Everyday Rewards or Coles Flybuys) have their loyalty programs built into their apps, so shoppers can easily scan a barcode or use the app at checkout to accumulate points. This convenience encourages more people to join and use the loyalty program, leading to higher repeat purchase rates. With an app, the loyalty program is always “on” – customers see their progress every time they open it, which motivates engagement.
• Personalised Offers and Content: Because apps allow fine-grained user data and preferences, retailers can send highly targeted promotions. The app can show a customer personalised product recommendations, curated content, or special discounts based on their purchase history. For instance, if a customer often buys athletic shoes, the app’s home screen can highlight new sneakers or an upcoming sale on running gear. This level of personalisation makes customers feel valued and understood, strengthening their loyalty to the brand. On a generic mobile website, such personalisation is much harder to achieve (especially for unregistered users).
• Push Notifications & Re-Engagement: Push notifications are a powerful tool to drive engagement and loyalty. Retailers use them to nudge customers back to the app with relevant updates – a flash sale starting, an item back in stock, a price drop on something in their wishlist, or a reminder that “you have 100 points to redeem, tap to use them!”. When done thoughtfully, these pushes keep the brand in the customer’s mind and prompt action. Notably, push notification open rates are incredibly high – often around 70–90%, vastly outperforming email open rates. Customers generally respond much faster to pushes (many within minutes) than to emails or other channels. For example, a push about a limited-time deal can create a sense of urgency that brings users back immediately. This direct line of communication is unique to apps – you simply cannot reach customers so effectively via a mobile web browser.
  • Retention impact: Studies show apps that send regular push notifications see significantly higher retention. Users who receive at least one push in the first week or two after installing are far more likely to keep using the app over 3 months. In retail, sending well-timed weekly notifications can boost 90-day retention by 2–5× compared to sending none. By keeping users engaged, apps prevent churn and encourage that next purchase.
  • Customer value: Push alerts can also deliver value – shipping updates, order ready for pickup, new product launches – which enhances customer experience. About a quarter of app users even actively enable and seek out notifications from their favourite shopping apps because they want to stay informed about deals or new releases. This indicates that loyal customers appreciate relevant pushes (as opposed to finding them intrusive), especially when they’re tailored to their interests.
• Community and Exclusive Content: Some enterprise retail apps create a sense of community or exclusivity that strengthens loyalty. For example, Nike’s suite of apps (Nike shopping app, SNKRS for sneaker drops, Nike Training Club) not only sell products but also engage users with content, challenges, and member-exclusive events. The Nike SNKRS app often offers limited-edition sneaker releases (“drops”) only accessible to app users – driving passionate fans to engage frequently so they don’t miss out. This exclusivity makes the app more than a store; it’s a hub for the brand’s most devoted customers. Similarly, beauty retailers like Sephora use their app to offer how-to videos, beauty tutorials, and a community forum where members can ask questions or share looks. These features keep users opening the app regularly, building a habit around the brand beyond just transactions.
• Omnichannel Integration: Enterprise retailers with physical stores can leverage apps to blend in-store and online experiences – a key for loyalty. For instance, an app can support in-store mode: enabling customers to scan product barcodes for reviews and details while browsing in a shop, or to check store inventory in real time. Some retailers (like Walmart and Target) have an in-store map and product locator in their apps, or allow customers to skip checkout lines by scanning items in-app and paying on the phone. These omnichannel features make shopping easier and give loyal customers a reason to always use the app whenever they interact with the brand. An app can also provide digital loyalty cards and receipts, so customers don’t need to carry physical cards and can seamlessly earn points whether they shop online or in person. By making the app a central part of all shopping journeys, retailers increase overall customer satisfaction and repeat visits.
• Direct Customer Feedback and Support: Apps open additional channels for customer service and feedback collection. Many retail apps offer built-in live chat support or quick feedback forms. This immediate access to help can improve customer loyalty – if an issue with an order arises, the customer can resolve it through the app quickly, rather than having to navigate a website or call a support line. Happier customers are more likely to remain loyal. Likewise, apps can run quick polls or ask for product reviews in-app, capturing customer sentiment more effectively. Engaging customers for feedback shows the brand listens and cares, deepening the relationship.

Overall, the mobile app becomes a hub for your best customers – those who download it are often the most invested in your brand. By catering to them with VIP perks (exclusive deals, early access, personalised offers) and convenient features, you reinforce their loyalty. This translates into higher customer lifetime value. Some retailers report that app users have significantly higher retention and spend over time. For example, Starbucks has famously leveraged its mobile app + Rewards program to build fierce loyalty: as of 2024, the Starbucks app had 34 million active members, and nearly 60% of Starbucks’s U.S. sales now come from Rewards members (who typically use the app to order or pay). In fact, about 31% of all Starbucks transactions in the U.S. were made via their mobile app by the end of 2023. This exemplifies how an app with a strong loyalty loop can transform customer behaviour and drive repeat revenue on a massive scale.

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Real-World Examples: Brands Winning with Mobile Apps

Many leading retail brands have made their mobile app the centerpiece of their digital strategy. Here are a few examples of enterprise retailers reaping the benefits of an app-centric approach:

• Starbucks: Starbucks’ mobile app is often cited as the gold standard. It combines convenient mobile ordering, payment, and a rich loyalty program (Starbucks Rewards) in one place. Customers can order ahead, skip the line, and earn rewards points (“Stars”) for each purchase, which can be redeemed for free drinks. The result? Enormous adoption – Starbucks has tens of millions of users on its app. This translates directly into sales and loyalty: as mentioned, roughly one-third of all Starbucks U.S. transactions flow through the app, and the majority of their revenue comes from loyal app-using Rewards members. The app’s ability to send personalised offers (e.g. double-star days, birthday rewards) and reminders around the customer’s usual purchase time helps drive daily engagement. Starbucks essentially created a habit for their customers via the app, strengthening brand loyalty (and even creating stored value – billions are loaded onto Starbucks cards in-app). It showcases how an app can become part of the customer’s routine.
• Walmart: As the world’s largest retailer, Walmart heavily invested in its app to enhance both e-commerce and in-store shopping. The Walmart app allows customers to shop the full online assortment, but also features like a barcode scanner for price checks in store, digital coupons, and Walmart Pay for touch-free in-store checkout. Walmart found that customers using the app were far more valuable – as noted earlier, app users visited twice as often and spent ~40% more. The app integrates the Walmart+ membership benefits, pharmacy services, grocery pickup scheduling, and real-time order tracking – making it a one-stop shop for engaging with Walmart. By making the app so useful (whether you’re at home or at a Walmart store), the company has driven millions to use it regularly. In fact, in recent years Walmart’s app has consistently ranked among the most downloaded shopping apps in the U.S., often right up there with Amazon. This broad app adoption gives Walmart a direct line to push promotions and drive both online sales and foot traffic.
• Nike: Nike views its mobile apps as key to its direct-to-consumer growth. Nike has several apps – the Nike shopping app, SNKRS, Nike Run Club, and Nike Training – all geared toward building a Nike community and funneling sales through its own channels. The strategy has paid off: Nike’s CEO highlighted that demand through Nike’s apps fueled an 18% annual growth in digital revenue, and that their family of apps drives almost half of Nike’s total digital business. By offering exclusive product drops on SNKRS and personalised content on the main app, Nike has deepened engagement with sneaker enthusiasts and fitness fans. The apps also tie into Nike’s membership program, which boasts over 300 million members globally. Members who engage via the app tend to purchase more and more often, contributing to Nike’s rising e-commerce sales. Nike’s leadership even noted that being on customers’ phone home screens is “the most prized real estate” and that increased app engagement correlates with higher repeat buying frequency and average order value. This underscores how crucial the app is to driving loyalty and revenue for Nike’s brand.
• Sephora: The beauty retailer Sephora has been a pioneer in blending digital and physical experiences, and its mobile app is central to that effort. The Sephora app integrates the Beauty Insider loyalty program, allowing users to track points and redeem rewards easily. It also offers innovative features like augmented reality “Virtual Artist” tools (where users can try on makeup shades via the phone’s camera) and a community Q&A forum. In-store, the app can be used to scan products for reviews and product information. By providing content, utility, and community, Sephora’s app keeps beauty enthusiasts engaged beyond just shopping. This has translated into strong customer loyalty – Beauty Insider members (many using the app) reportedly drive a significant portion of Sephora’s sales. The app’s convenience and fun features encourage customers to experiment and spend more with Sephora.
• Amazon: No discussion of retail apps is complete without Amazon. Although Amazon started as an online-only player, its mobile app is a major reason for its dominance in m-commerce. The Amazon app is designed for seamless purchasing – one-click buys, personalised recommendations on the home feed, voice ordering with Alexa, and easy package tracking. Consumers often find it more convenient to open the Amazon app than to use a browser when they have something in mind to buy. Amazon has reported that a large share of its customers’ sessions and orders now come through the app. The lesson for traditional retailers is that Amazon has set a high bar for mobile convenience, and to compete, having a powerful app of your own is key. Customers have grown to expect a frictionless app shopping experience, and they gravitate to the platforms that provide it.

These examples show that whether it’s specialty coffee, general merchandise, sportswear, beauty, or the everything store – mobile apps are driving the future of retail. Companies that leverage apps effectively are enjoying higher customer lifetime value, stronger brand affinity, and integrated omnichannel sales. Importantly, they’re also gathering rich first-party data about how customers browse and buy, which can inform everything from marketing to inventory decisions. That data advantage tends to grow as more interactions happen via logged-in app sessions rather than anonymous web sessions. In an era where understanding and directly reaching your customer is crucial (and third-party data is becoming less reliable), having an app helps enterprise retailers own the customer relationship more fully.

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Don’t Get Left Behind: Mobile Apps as a Strategic Must

For time-pressed retail executives evaluating where to invest, the evidence is clear: a mobile website alone, while necessary, is not sufficient to deliver the best mobile commerce results. An enterprise retail app is no longer just a “nice-to-have” — it’s a strategic must for retailers aiming to foster loyalty and maximise revenue from mobile consumers.

Consider these key takeaways:

• Customer Expectations: Shoppers now expect top retailers to have a convenient app. If your brand doesn’t offer one, you risk appearing less convenient than competitors who do. A mobile site might suffice for one-off visitors, but your regular customers likely want the faster, tailored experience of an app (as long as you provide real value in it). Not providing an app could even send your loyal customers to alternative apps that aggregate retailers or, worse, to competing brands with better mobile engagement.
• Competitive Advantage: Many enterprise retailers are already investing heavily in apps – not doing so could put you at a competitive disadvantage. If your rival can send push notifications about a sale or deliver a seamless 10-second checkout via their app, and you cannot, guess who will capture that purchase? Mobile commerce is a game of removing friction and staying connected to the customer; apps excel at both.
• Revenue and ROI: While building and maintaining an app requires resources, the ROI can be very high. The increased conversion rates, larger basket sizes, and more frequent purchases from app users directly boost revenue. Additionally, modern solutions (like low-code app platforms or adaptable app templates) have made it faster and more cost-effective to launch a high-quality retail app than in the past. The investment today is smaller compared to the opportunity cost of missing out on the app-driven sales uplift.
• Integration with Retail Strategy: An app should be seen as an integral part of your retail mobile strategy, complementing your stores and website. It’s not about apps versus web, but about using each for what they do best. The mobile web draws new customers in via search and lets anyone transact without barriers – it casts a wide net. Your app, on the other hand, keeps the catch, turning shoppers into repeat customers. Together, they cover the full customer journey. Leading retailers design their campaigns and customer journeys to eventually migrate valuable customers to the app (for example, encouraging a web shopper to download the app with a first-purchase discount or exclusive perk).
• Future-Proofing: Trends indicate mobile apps will only become more central to retail. Emerging technologies – from mobile wallets to augmented reality shopping, and increasingly, personal AI assistants – are being integrated into apps. Retail apps are likely to be at the forefront of innovations like in-app AI chat for style advice, or AR overlays in store aisles. By establishing a strong app presence now, retailers set the stage to adopt these innovations quickly and stay ahead of the curve.

In conclusion, enterprise retailers need their own mobile app because it drives stronger customer relationships and higher sales that a mobile website alone cannot match. A well-executed app becomes your most loyal customers’ preferred way to shop – a direct pipeline to revenue and a channel to reinforce brand loyalty daily. As mobile commerce continues its explosive growth, retailers who invest in apps are positioning themselves to capture the bulk of that growth, while those who don’t risk losing their most valuable customers to more mobile-savvy competitors.

Learn how Awayco’s Mobile App Studio helps enterprise retailers launch apps faster. By leveraging a solution like this, even large retail organisations can accelerate their app development and start reaping the benefits of a mobile app in a fraction of the time it used to take. The bottom line: the sooner you can get your own app into customers’ hands, the sooner you turn mobile into a powerhouse revenue and loyalty channel for your retail business.

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Key Mobile Retail Stats (2025)

• Mobile’s Share of Sales: Mobile commerce now accounts for ~59% of all retail e-commerce sales worldwide (over $4 trillion annually). In the US, mobile’s share is nearing 45% and climbing each year.
• Time Spent on Apps: Consumers spend about 88–90% of their mobile device time in apps, vs. only 10–12% on the mobile web. Shoppers gravitate to apps for convenience and speed.
• App vs Web Conversions: Retail apps convert customers at 3–4× the rate of mobile websites. (One study showed 18% conversion in-app vs 4% on mobile web for retailers.) Apps also lead to ~15% higher average order values and far lower cart abandonment (20% vs 85% on mobile web).
• Loyalty Impact: Shoppers who download a retail app tend to visit 2× more often and spend significantly more (e.g. +40%) than those who only use the mobile site. A large portion of many retailers’ sales now comes from app users and loyalty members (e.g. ~60% of Starbucks US sales are from Rewards members using the app).
• Push Notification Engagement: Push notifications on retail apps can see open rates around 70-90%, much higher than email. About 40% of users engage with a push within an hour, making it a highly effective channel to drive immediate action (like flash sale purchases or cart reminders). Users receiving regular push updates show retention rates multiple times higher than those who receive none.
• Customer Preference: Surveys indicate the vast majority of consumers find shopping via apps more convenient – only 12% said mobile websites offer a similarly convenient experience. The top reasons cited for preferring apps include speed, saved login/payment info, and better user experience. Apps, in short, have become the preferred way to shop on mobile for engaged customers.