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Click and collect drives store sales, but retailers need to work together to reap this £10bn bonanza

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Offering Click & Collect is a direct driver of sales, with a third of retailers (34%) seeing in-store revenues go up once they have invested in the service. But shoppers want retailers to team up to make it even more useful, according to new research by Barclaycard.

The UK Click & Collect market set to grow 45% per cent to be worth almost £10bn by 2023, according to GlobalData research, and retailers are planning to capitalise on this demand with 90 per cent intending to invest in the service over the next five years, says Barclaycard.

The Barclaycard study finds that almost nine in ten retailers (87%) say Click & Collect is their fastest growing delivery option, with seven in ten shoppers (68%) now choosing to pick up online orders in-store. Convenience appears to be a driving factor behind this trend, with 42 per cent of consumers saying that they rely on Click & Collect services because they are out during the day, and a further 15% select this option because they cannot have deliveries sent to work. 

Against a backdrop of widespread store closures taking place across the UK, 60% of UK shoppers are calling on businesses to team up so that they can collect purchases in more locations. Nearly three in ten customers (29%) already pick up items ordered online at local shops or lockers, and 68% of retailers expect demand for this to increase in the next year.

The dual benefit of Click & Collect partnerships

By coming together to offer Click & Collect services, more retailers will be able to leverage the mutual benefits that partnerships provide, such as the potential to increase sales and reduce refunds. Indeed, over eight in ten customers (85%) say they buy additional items in store when using the service, while more than three quarters of retailers (77%) report reduced return volumes, which ultimately saves them the cost of processing refunds and restocking goods.

Yet, despite consumer demand, less than one in five retailers (17%) have started offering third-party collection services that allow shoppers to pick up purchases from other locations, such as local corner shops or lockers. 

Kirsty Morris, Director, Barclaycard Payment Solutions, explains: “Not only does Click & Collect offer merchants the opportunity to increase sales, our research shows it can improve the overall customer experience as a complement to online shopping, while reducing return volumes too.”

She adds: “With the retail sector facing unprecedented challenges, investing in Click & Collect partnerships should be part of a long-term strategy for retailers to encourage shoppers into stores and respond to the changing shape of the nation’s high streets.”

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