GUEST COMMENT Why retailers must rethink delivery strategies to meet holiday demand

An increase in online shopping during the holiday season signals a crucial time for UK retailers to rethink their delivery strategies, writes Patrick Eve, head of UK at Nash.

Last year, during Black Friday and the holiday season, 56% of UK shoppers chose to buy online, a clear sign that consumer expectations have shifted. However, many retailers are still relying on traditional methods that make it challenging to meet the growing demands for faster, more reliable delivery.

There’s a real advantage that retailers can take in the UK — with its population density and the fact that our key cities have relative proximity to ecommerce distribution centres, local delivery is not only sustainable but also more achievable than other economies around the world — yet this potential is often underestimated.

To stand out and meet customer expectations, UK retailers need to rethink how they use their stores and approach delivery. Adopting smarter delivery strategies, using stores as distribution hubs, and keeping track of stock in real-time are critical steps retailers need to take in 2024.

Seizing the opportunity with same-day delivery
Consumer demand for same-day delivery has quickly shifted from being a luxury to an expectation, especially in busy urban areas where last-minute gifts and urgent holiday needs are common. To stay competitive, retailers need to offer more than just basic shipping. They must provide a complete logistics solution that meets these rising expectations.

This requires more than just sending out packages. Retailers need a well-organised operation that can manage multiple delivery windows throughout the day, ensure customers’ demands for consistently reliable delivery are met, adapt to changing order volumes, and handle different types of items — from regular packages to fragile, luxury or perishable goods. Key to this is having a range of delivery partners via an orchestration platform like Nash, which acts as the middle layer of your logistics infrastructure to dispatch based on location, cost, reliability metrics, or delivery type.

Additionally, offering real-time tracking through your delivery platform — similar to what consumers expect from delivery apps like Uber Eats or Deliveroo — keeps customers informed and engaged throughout the process. With these tools, retailers can quickly assign deliveries to the most suitable option, make adjustments as new orders come in or conditions change, and help every delivery arrive on time.

Rethinking your store as a warehouse
One way retailers can meet growing demands for faster delivery is by rethinking how they use their physical stores. The concept of using stores as distribution hubs, and coordinating them alongside warehouses, is gaining traction among retailers. By leveraging existing store infrastructure through a Ship-from-Store model, retailers can significantly reduce delivery times, especially for same-day or next-day services. This approach not only maximises the use of physical assets but also brings products closer to the consumer, effectively turning every store into a mini distribution centre.

When stores are utilised as part of the delivery network, products are already closer to where customers are, making it easier to fulfil orders quickly. Coordinating store inventories with central warehouses through an advanced orchestration platform allows retailers to optimise their stock levels and delivery routes. This setup means that customers receive their orders from the most logical and efficient location, whether it’s a nearby store or a central warehouse.

Maintaining accuracy with stock and courier visibility
Accurate and real-time visibility of both stock and delivery capacity is the backbone of any successful Ship-from-Store initiative. Without it, retailers risk over-promising and literally under-delivering, leading to dissatisfied customers and potential revenue loss. Advanced inventory management systems, integrated with delivery orchestration platforms like Nash, keep stock levels and delivery capabilities consistently monitored and updated.

Visibility into inventory means retailers know exactly what products are available and where they are located, allowing for swift and accurate fulfilment. Just as crucial is visibility into which delivery couriers are available at any given moment. This allows retailers to efficiently allocate orders to the right courier based on their current capacity, proximity, and reliability. By balancing inventory levels with real-time courier availability, retailers can meet customer expectations for speed and reliability, reducing the risk of delays and improving the overall shopping experience.

Leveraging click and collect
Following the emphasis on stock visibility, Click and Collect offers consumers the convenience of online shopping with the added benefit of immediate pickup, bypassing the wait for delivery. Accurate and up-to-date inventory insights are crucial here, allowing retailers to confidently present products as available for in-store pickup, knowing that the items are truly on hand.

This approach not only meets customer needs but also eases the burden on delivery networks, particularly during peak shopping periods like Black Friday. To make Click and Collect work efficiently, it’s essential to have a smooth integration between e-commerce platforms and in-store systems. This connection enables retailers to promptly prepare orders for pickup while keeping both online availability and in-store stock levels aligned. By maintaining precise inventory visibility, retailers can make the Click and Collect process seamless and reliable, providing customers with a consistent and dependable shopping experience.

Meeting the moment
As Black Friday and the Christmas holiday shopping season approaches, UK retailers face an urgent need to adapt to changing consumer expectations. The strategies outlined — same-day delivery, using stores as warehouses, maintaining stock and courier visibility, and leveraging Click and Collect — are no longer just competitive advantages, they are necessities.

Retailers who embrace these approaches will be well-positioned to meet the rising demands of their customers, ensuring not just survival but success in an increasingly complex market. Those who hesitate may find themselves outpaced by competitors who have already begun to rethink and reshape their delivery strategies. It’s not too late to adopt these strategies ahead of the holiday rush. Now is the time to act, and the retailers who do will set the standard for the future.

Patrick Eve, Head of UK at Nash