News • 25.01.2018

UK click & collect sales set to soar 55.6 percent to 2022

Click & collect continues to rise rapidly in the UK, outpacing growth in the online retail channel

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Source: S. Hofschlaeger/pixelio.de

Click & collect continues to rise rapidly in the UK, outpacing growth in the online retail channel, with click & collect sales forecast to account for 13.9 percent of total online spend in 2022, 1.9 percentage points higher than in 2017, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report: ‘Click & Collect in the UK, 2017-2022’ states that clothing & footwear will drive the click & collect channel, accounting for 61.2 percent of spend by 2022, as online sales in the sector continue to rise.

While the click & collect market is forecast to increase 55.6 percent over the next five years to reach £9.6bn in 2022, growth will slow as the market matures. Despite rapid growth anticipated over the next five years, click & collect sales will be impacted as retailers continue to close unprofitable stores as physical locations struggle against the online channel, reducing the number of click & collect locations.

In addition to this, more retailers are investing in delivery saver schemes following the success of Amazon Prime and ASOS Premier, encouraging shoppers to subscribe and save on delivery costs. As this is a primary driver of click & collect, this will also hinder sales via the channel.

Charlotte Pearce, Retail Analyst at GlobalData, comments: “Click & collect sales will become increasingly threatened as delivery saver schemes become more widely available and retailers continue to extend their choice of fulfilment options. Retailers must ensure that their click & collect propositions are competitive in terms of price and/or threshold as well as speed of delivery into stores. This will help to drive footfall into stores and encourage additional spend at the retailer.”

GlobalData’s report also states that click & collect user satisfaction fell 11.2 percentage points from 89.6% in 2016 to 78.4% in 2017. Retailers are failing to provide an adequate experience for click & collect users with high expectations looking for a fast, hassle-free service. With more fulfilment options being offered by retailers, including same day delivery and third-party pickup via Collect+, Doddle and Amazon lockers, for example, click & collect may not be the most convenient option for shoppers.

Pearce adds: “Retailers which do offer click & collect must invest in their service to reduce pain points in the customer journey, such as long queue times. John Lewis and Zara are examples of two retailers that are trying to improve the process through the use of technology. Not only will these retailers be able to reduce queues within stores, but this will also help to free up valuable staff.”

Source: GlobalData

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