UK’s Click & Collect to grow by 45 per cent in the next five years
The click & collect market in the UK is predicted to grow to £10 billion by 2023, despite customer satisfaction being significantly lower than that for home delivery, according to research by GlobalData.
The company’s latest report ‘Click & Collect in the UK 2018 – 2023 revealed that the market is set to rise 45.8 per cent over the next five years and highlighted the additional purchases benefit for the food and grocery sector.
Almost 40 per cent of customers bought an additional item while collecting their last order, with food & grocery being the sector that more customers purchase an extra item from, due to low prices and essential nature of many products.
Emily Salter, retail analyst for GlobalData said that despite the growth, consumers still prefer the experience of home delivery.
“Although 79.9 per cent 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 per cent,” Salter said.
“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.”
While many retailers have improved their service in recent years by extending order cut off times, increasing speed and minimising costs, service enhancements have plateaued as these elements have been optimised.
“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,” Salter added.