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Click & collect market in the UK to grow nearly 50% over the next five years

| International retailers

The UK click & collect market is set to grow 45.8% over the next five years to reach £9.8bn by 2023, but growth will slow as the fulfillment method matures and services offered by retailers are optimised, according to data and analytics company GlobalData.

Its latest report ‘Click & Collect in the UK 2018 – 2023’ reveals that the clothing & footwear sector is by far the largest within the click & collect channel, accounting for 59.9% of spend in 2018. Although the majority of key multichannel retailers have finely tuned their proposition over recent years by extending order cut off times, increasing speed and minimising costs, service enhancements have plateaued as these elements have been optimised.

Citing data from a recent shopper survey, Emily Salter, Retail Analyst for GlobalData, said: “Although 79.9% 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%.

“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.”

GlobalData found that additional purchases increase the importance of click & collect to retailers, as 39.2% of customers bought an additional item while collecting their last order. This varies quite substantially by sector though, with food & grocery items being the sector that more customers purchase an extra item from, due to the low prices and essential nature of many products, and presence in a range of stores.

Salter concluded: “A number of factors will inhibit growth of the click & collect channel, including store closures. 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.”




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