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Saturday 24 August 2019

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Click and Collect to hit £10bn by 2023

Written by Peter Walker
07/02/19

The UK Click and Collect market is set to rise 45.8 per cent over the next five years, to reach £9.8 billion by 2023, but growth will slow as the fulfilment method matures and services offered by retailers are optimised, according to GlobalData.

Using data from its 2018 survey of 10,000 online shoppers, the data analysis company revealed that the clothing and footwear sector is by far the largest within the Click and Collect channel, accounting for 59.9 per cent of spend in 2018.

Although the majority of key multichannel retailers have improved their proposition over recent years by extending order cut off times, increasing speed and minimising costs, service enhancements have plateaued as these elements have been optimised.

Emily Salter, retail analyst for GlobalData, explained that while 79.9 per cent of Click and Collect users were satisfied with the services in 2018, this is significantly lower than for home delivery, which stands at 89.5 per cent.

“Retailers continue to introduce measures to meet rising consumer expectations for home delivery, such as offering same day services – led by online pureplays such as Amazon and ASOS.

“Next is one of the few multichannel retailers currently offering a Click and Collect proposition to rival the speed and cost of home delivery, through recently introducing free one hour collection in selected stores,” she added.

Additional purchases increase the importance of Click and Collect to retailers, as 39.2 per cent of customers bought an additional item while collecting their last order.

This varies quite substantially by sector though, GlobalData noted, with food and grocery items being the sector that more customers purchase an extra item from, due to the low prices and essential nature of many products, and presence in a range of stores.

Salter concluded that a number of factors will inhibit growth of the Click and Collect channel, including store closures.

“The growing number of retailers closing stores and implementing CVAs will reduce the availability of collection points, increasing usage of alternative delivery options.

“Additionally, delivery saver schemes encourage customers to predominantly use home delivery as express deliveries are included in the vast majority of schemes, driving up usage of express home delivery,” she commented.

In October, analysis of sales data from UK retailers showed that shoppers spend an average of 14 per cent more when they opt for Click and Collect delivery.



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