Click & Collect Market 2013

Click & collect market to grow to £4bn by 2018… • We forecast the value of the click & collect market to increase by almost two thirds from 2013 to 2018.

Shoppers are increasingly valuing the convenience offered by the service, which is proving to be a competitive advantage for physical retailers with a large store estate.

…but it will still be only 1.2% of the overall retail market in 2018 • While the benefits of click & collect are clear to consumers and multichannel retailers, as delivery providers

and pureplay online retailers continue to improve fulfilment services, with collection at convenience stores and lockers, and narrower delivery slots being offered, it may not be the panacea that many store chains hope it to be in the longer term.

Affluent females most likely to use click & collect • Click & collect penetration shows a high proportion of users in the 25–44 age range and in the higher socio-

economic ranges, and slightly higher usage among females. Penetration is high for 25–44 year olds, as they are most likely to adapt to new services on offer that are more convenient to fit around their working hours, and, as there is heavy weighting towards clothing & footwear users, they are also the most likely to be regular fashion purchasers.

• The lowest penetration is in the 15–24 age range and in the DE economic range, which suggests that low income young shoppers are less inclined to use the service. This is likely to be driven by the relatively low value of items being purchased, which shoppers are happy to have delivered and possibly risk not being home.

Click & Collect Market 2013

Tesco and Marks and Spencer lead the way in click & collect • The top five retailers in terms of click & collect shoppers are Tesco, Asda, Marks and Spencer, John Lewis

and Currys/PC World. Marks and Spencer had the highest click & collect penetration of their online shoppers, reflecting the demographic of their customers being aligned with the typical demographic profile of the click & collect shopper – older, more affluent females. The results validate the retailer’s decision to invest in the service providing dedicated collection points within stores and offering short lead times between ordering and availability for collection.

Retailers need to shorten lead times to collection • When comparing the cost, time and prominence of the click & collect offer of the top 10 retailers, there is a

similar trend among the leading retailers versus the bottom 10 for conversion. All of the top retailers offer the service for free, with the majority offering collection within one day of ordering and giving the service prominence on their website's front page. This is in contrast to the bottom 10 retailers, some of which charge for the service, all but three take over one day for collection and the majority do not advertise the service on their front page.

Low added convenience

Slightly faster fulfilment

Store purchases

Click & collect

Store purchases that would otherwise

migrate to online home delivery

Online purchases for home delivery

High added convenience

Much faster fulfilment

Where click & collect cannibalises sales from

Click & collect

purchases

cannibalise home

delivery purchases

more than store

sales due to the

extra levels of

convenience and

speed which are

the key consumer

drivers for

collection

Click & Collect Market 2013

This research is based on our Click & Collect UK 2013, Market Sizes

and Forecasts by Sector | Verdict Channel Report

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For more information on the Click & Collect Market 2013 report Please contact Verdict on +44 (0)20 7551 9664, or by email: enquiries@verdictretail.com