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Click and collect spend to grow by nearly two thirds over next five years


Click and collect expenditure is expected to grow by nearly two-thirds (64%) between now and 2021, according to new figures from Verdict Retail’s Channel Series report: Click & Collect in the UK 2016.
The growth compares to an online growth of 38% over the same period.

The study forecasts that click and collect will grow across all categories but will principally be driven by clothing and footwear which is expected to grow by 85% over the next five years. Clothing and footwear already accounts for more than half (54%) of all click and collect expenditure in the UK this year.

The channel seems to be working for retailers in boosting in-store spend. Almost two-fifths (39%) of consumers make an additional purchase when collecting an online order from a store. This compares to 29% in 2013. However, the amount spent on additional purchases is down from 2013 at an average of £13.

Despite its forecasted growth, Verdict believes other delivery models may see more of a focus by retailers as they try to improve their fulfilment offers. It believes many retailers will follow the lead of the likes of Amazon, ASOS and Boohoo who launched home delivery subscription services in 2005, 2009 and 2016 respectively.

In November fashion retailer New Look also launched a delivery subscription service. Its service, The Delivery Pass, costs £9.99 a year and offers unlimited delivery and collection on all options including precise next day and evening deliveries as well as free returns.

Such services allow customers to save on delivery charges and as such are likely to increase loyalty and drive more of that customer’s spend to the retailer concerned.

Other fulfilment offers are also expected to grow rapidly. These include PUDO – Pick Up Drop Off, which includes lockers and collection from neighbourhood stores – which is expected to grow by 117% by 2021.

“A growing number of consumers choose click & collect when purchasing online – though largely to avoid delivery charges,” said Zoe Mills, analyst at Verdict Retail. “Retailers must ensure that click & collect is as efficient as possible, particularly by offering same-day collection, to ensure it doesn’t lose out to retailers with delivery subscriptions propositions.”

Image credit: Fotolia

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