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Clothing & ShoesEconomySupermarkets

Click-and-collect market to grow to £9.8bn by 2023

The UK click-and-collect market is set to rise 45.8% over the next five years to reach £9.8bn by 2023, according to analytics company GlobalData.

However, growth is expected to slow as the fulfilment method matures and services offered by retailers are optimised.

The company’s latest report, ‘Click & Collect in the UK 2018 – 2023’, revealed the clothing and footwear sector is the largest within the click-and-collect channel, accounting for 59.9% of spend in 2018. Although the majority of multichannel retailers have extended order cut off times, increased speed and minimised costs, service enhancements have plateaued as customers are less satisfied with click and collect services than home delivery.

Additional purchases boost the importance of click-and-collect, as 39.2% of customers bought an additional item while collecting their last order. This varies by sector as customers are more likely to purchases extra items from food and grocery retailers due to the low prices and essential nature of many products as well as the presence in a range of stores.

Emily Salter, retail analyst for GlobalData, said: “Although 79.9% of click-and-collect users were satisfied with click-and-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-and-collect proposition to rival the speed and cost of home delivery, through recently introducing free one hour collection in selected stores.”

She added: “A number of factors will inhibit growth of the click-and-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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