The click & collect market in the UK is set to rise by about 45.8% over the next five years, to be valued at £9.8 billion, according to a new report from GlobalData.
The Click & Collect in the UK 2018 – 2023 report found that while click & collect is set to gain in prominence, growth is likely to slow, as fulfilment method matures and services offered by retailers are optimised.
“Although 79.9% of click & collect users were satisfied with click & collect services in 2018, this is significantly lower than for home delivery, which stands at 89.5%," commented Emily Salter, retail analyst for GlobalData.
“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 & collect proposition to rival the speed and cost of home delivery, through recently introducing free one hour collection in selected stores.”
Some 39.2% of shoppers bought an additional purchase when collecting their last order using click & collect, which GlobalData says offers an opportunity for the channel to drive discretionary spend.
The prevalence for additional purchases varies quite substantially by sector though, 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.
“A number of factors will inhibit growth of the click & collect channel, including store closures," Salter added.
"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.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.