Company News • 05.04.2017

Click & Collect: the future of online grocery shopping

Smart services and techniques are constantly improving the customer experience

Click & Collect is a smart solution for both busy shoppers and profit-seeking retailers. It solves many of the problems that have prevented online shopping for groceries from taking off, such as costly deliveries and the small range of available products.

E-commerce has made shopping convenient, and smarter services and techniques are constantly improving the customer experience. Today, 75 percent of buyers in Western Europe use the Internet to purchase goods and services. So far, the most common process is to order a product and get it delivered at home. However, that is rarely the most convenient solution. The risk is that the delivery takes place when the customer is not at home, which means that the distributor must either find a new time or leave the goods at the Post office – solutions that can be inconvenient for customers and expensive for distributors. Click & Collect is therefore often a better option for both retailers and customers. With Click & Collect, customers order online and pick up their purchases in lockers, placed at convenient locations such as shops, supermarkets, post offices and public transportation stations.

Supplier
Logo: StrongPoint

StrongPoint

Schießstrasse 35
40549 Düsseldorf
Germany
Photo: Click & Collect: the future of online grocery shopping...
Source: Strongpoint

Maximising the number of deliveries

Andrew Starkey, head of e-Logistics at IMRG, an organisation based in the UK that frequently publishes studies on online retail, says that the click-and-collect increase is about proximity. “Shoppers will only use click-and-collect if the collection location is close to home or on a regularly travelled route. It also requires that the customers can combine the pick-up with other ‘high street’ activity.”

Starkey says that markets with large commuter populations and dense populations, such as France and the UK, will move faster to the click-and-collect solutions than other markets.

“It’s all about maximising the number of deliveries to the largest percent of population through the optimal number of locations,” he explains.

Supply, convenience and price

Already, more than half of customers across Europe use click-and-collect as their preferred delivery option for online orders, according to a Forrester study. However, Click & Collect is not yet that popular for grocery shopping. According to a report from McKinsey and Company, the reason is that customers are not willing to sacrifice the price, quality, or range of products that they have grown accustomed to in the supermarket.

Supply, convenience and price are the most important drivers for e-commerce. Families in Western Europe are often pressed for time, and could, if done the right way, welcome an alternative to pushing a shopping cart around in a crowded supermarket. But they also have a lot of activities to run to and don’t want to tie themselves down to having to be at home for a delivery. Especially since most deliveries work in slots, which means you have to book a whole evening for your weekly groceries.

“Families have less and less time. Often both parents work and weekdays and weekends are filled with activities. There is simply no time for shopping. Or staying at home to wait for a delivery, when the time slot is a range between six and ten in the evening. Some people find that solution convenient, but others don’t. This is where click-and-collect collect comes in. It is the solution for today’s modern families,” says Ove Teigen, Global Product Director Click & Collect at Strongpoint.

The expensive last mile drives the move towards click-and-collect

The McKinsey study points out that Europe’s online-grocery market has been stuck in a vicious cycle: poor supply drives low demand, which in turn justifies the poor supply. Also, retailers are put off by the economics of the business: selling groceries online means taking on additional costs in labour, delivery vehicles and fuel. These costs are typically higher than the fees customers are willing to pay for deliveries, so the retailers have to take these costs today. In countries such as France and the UK, the time it takes to for a truck to move around busy cities combined with fuel cost is very expensive. And in Scandinavia, having truck drivers is a huge personnel cost. In the near future, that cost will have to be charged to the customers.

But according to the McKinsey study, click-and-collect will result in as much as a 30 percent cut in cost, which makes the investment much more viable for retailers.

“A common rule of thumb that almost always applies is that the last mile is the highest cost. That last mile is avoided with the click-and-collect system. So Click & Collect opens up for the possibility for profitable and convenient online shopping in the grocery segment as well,” Teigen says.

Click-and-collect- advantages for the customer

  • Convenience
  • Saves costs
  • Guarantee for safe handling of groceries
  •  Avoid the risk of making your way to a grocery store, only to realise that the product you want to purchase is out of stock

Click-and-collect- advantages for the retailer

  • Many deliveries to the same location. Many consumers pick up their groceries from the same place.
  • Ensures the right environment for the groceries, for example, the right temperature
  • Smart solutions that integrate the retailer storage and logistics centre with what is stored in the lockers.
  • Click & Collect is a great method for encouraging customers to make additional purchases

related articles:

popular articles:

Thumbnail-Photo: This is how retailers get their online business holiday-ready...
02.11.2020   #digital marketing #online marketing

This is how retailers get their online business holiday-ready

Checklist for supply chain optimization, SEO, and digital marketing

One thing is clear: in this pre-holiday period, many consumers will avoid the city centers and do their Christmas shopping online. That is why the big retail chains are already vying for consumers' attention. The small stores and local retailers ...

Thumbnail-Photo: Smart solutions for the retail of tomorrow
28.09.2020   #video surveillance #video cameras

Smart solutions for the retail of tomorrow

Increase sales in retail?

Use intelligent technologies to set the right buying impulses at the stationary PoS by continuously adapting advertising messages to the situation in real time.Learn more about it in the video! ...

Thumbnail-Photo: IKI selects Reflexis Systems intelligent workforce management to...
13.10.2020   #personnel management #workforce deployment

IKI selects Reflexis Systems intelligent workforce management to optimize labour efficiency

Lithuanian retailer will work with StrongPoint to deploy Reflexis solutions in 228 stores and across 5,000 employees

Reflexis Systems (now part of Zebra Technologies), the leading provider of intelligent workforce management and execution solutions for multi-site businesses in retail, food service, hospitality and banking, today announced that IKI, one of ...

Thumbnail-Photo: Disposition and shelf maintenance in times of Corona...
19.08.2020   #POS marketing #shop equipment

Disposition and shelf maintenance in times of Corona

Tools for shelf management

The CPG industry is currently experiencing turbulent times just as much as retail. Challenges such as the ban on field sales force visits or the sudden increase in demand for some articles, which leads to gaps in the shelf and loss of sales, are ...

Thumbnail-Photo: Beauty shoppers won’t try new products when shopping online...
26.11.2020   #online trading #e-commerce

Beauty shoppers won’t try new products when shopping online

‘Virtual’ try-on technology positively impacts 45% of beauty shoppers

While nearly half (44%) of beauty shoppers in a new survey agree that they have bought more beauty and skincare products online (rather than in store) over the last 6 months, the research reveals that 56% (rising to 62% among female shoppers) tend ...

Thumbnail-Photo: Denmarks first sustainable DIY store has great success...
30.10.2020   #sustainability #electronic shelf labels (ESL)

Denmark's first sustainable DIY store has great success

Electronic price tags provide price and product information

In February 2020, STARK opened its doors to a whole new and sustainable DIY store in Hørsholm (Denmark), which will make it easier for customers to build sustainably. The store has got a flying start despite Corona and general restrictions in ...

Thumbnail-Photo: Checkout-free service at Giant Eagle’s GetGo Café+Market store...
07.09.2020   #self-checkout systems #app

Checkout-free service at Giant Eagle’s GetGo Café+Market store

Retrofitting an existing store

Grabango announced the launch of commercial service with one of its retail partners, Giant Eagle, Inc, owner of GetGo Café+Market. Grabango’s checkout-free system is now available to save shoppers time by letting them skip the line. The ...

Thumbnail-Photo: SPAR grocery store embraces new technologies...
23.09.2020   #digitization #app

SPAR grocery store embraces new technologies

The store has implemented Delfi Technologies' cloud solution and mobile app to manage the store's electronic price tags

This year, the co-operative association Tikøb could celebrate its 100th anniversary. Today, the SPAR grocery store in Tikøb is one of the stores in the chain that is at the forefront when it comes to implementing new technology. Most ...

Thumbnail-Photo: New chain of toy stores in strong collaboration...
29.09.2020   #brick and mortar retail #digitization

New chain of toy stores in strong collaboration

Kids Coolshop is booming with new toys stores in a pressured market where competition is fierce

The chain has started installing electronic shelf labels in its physical stores. The electronic price tags are linked to a strong e-commerce engine and must help ensure competitive prices across all channels.Kids Coolshop was launched in 2017 ...

Thumbnail-Photo: APG Cash Management Solutions partners with Cashspeed...
19.11.2020   #cash management #cash drawers

APG Cash Management Solutions partners with Cashspeed

Helping retailers reduce the cost of managing cash at the point of sale

APG Cash Management (APG), a fast-growing global manufacturer of cash management solutions, announced today its partnership with French software firm, Cashspeed, which focuses on cash management and payments systems software. Now certified as a ...

Supplier

Axis Communications GmbH
Axis Communications GmbH
Adalperostraße 86
85737 Ismaning
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Adasys GmbH – a Poindus Company
Adasys GmbH – a Poindus Company
Max-Planck-Straße 10
70806 Kornwestheim
POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen