Click & collect services will achieve faster growth than online channel by 2021 in the UK, says a report by Verdict.
Titled ‘Click & Collect in the UK 2016’, the report states that click & collect will grow by 64% between last year and 2021, compared with 38% for online channels.
Click & collect is projected to grow across all sectors with the clothing and footwear category being the major driving force. The clothing and footwear category accounted for 54% of all click & collect expenditure last year. The category is projected to grow by 85% over the next five years, adds the report.
However, growth of click & collect will be dependent on consumer frequency and retailer adoption. Future growth of the channel is projected to decline with the market maturing as retailers explore other methods of fulfilment.
Click & collect was earlier favoured by retailers as it led to additional purchases. In 2013, 29% of consumers made additional purchases while collecting their delivery and by 2015, this percentage increased to 39%.
The returns generated by additional purchases, however, outweighed the cost of click & collect, which includes the cost picking, handling and transporting of goods. Some retailers are, therefore, in favour of home delivery subscription services that encourage loyalty among customers.
Many companies such as Amazon Prime, ASOS and boohoo.com have launched subscription services, which usually sign up consumers for one year with a retailer and do not require to pay additional delivery charges.
As a result, consumers are more likely to purchase from that retailer during the subscription period. Subscription services, therefore, encourage loyalty, while that’s not the case with click & collect.
Consumers are mainly choosing click & collect to avoid delivery charges. Retailers providing click & collect need to enhance their offerings by providing services such as same-day collection to counter competition from retailers offering subscription services, opines Zoe Mills, Analyst at Verdict Retail.