Click & collect to be worth £4bn in 2018
Click & collect purchases will grow by more than two thirds to be worth over £4 billion in 2018, according to a new report by retail analyst Verdict.
Although the growth in click & collect will be rapid, it will still only be worth around 8% of online sales in 2018, and just 1.2% of total retail sales.
Matthew Rubin, analyst at Verdict, said the growth will be tempered by improvements to other fulfilment options. “Home delivery companies, and pureplay online retailers are monitoring the development of click & collect and are reacting accordingly,” he added. “They are looking to offer collection points at convenience stores and lockers, same day delivery, narrower delivery time slots, and improved tracking and updates of estimated delivery times.”
The research found that clothing and footwear has the highest penetration of click & collect, with 23.5% of online shoppers and 46.5% of click & collect users having used the service in the sector. Rubin explained: “This is down to the frequent nature of clothing purchases and the ability to ensure size and range availability compared to store shopping as well as the shortened lead time compared to home delivery which can be crucial in some clothing transactions.”
The second-placed sector is electricals, which has 15.4% penetration of online shoppers and 30.6% of click & collect users.
The research found that women are more likely to pick up online purchases from stores than men, making up 54% of users. The typical click & collect user is between 25 and 44 years old, and in the most affluent AB socio-economic group.
Verdict surveyed 10,000 online shoppers and 27% of respondents said they expected to increase their use of click & collect. Rubin said: “This represents both an opportunity and a warning for retailers. With so many potential new users, retailers must invest in having adequate space, stock maintenance, and logistics to cope with the pressure.”
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