IMRG UK Click & Collect Review 2018 - EXECUTIVE EXTRACT
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IMRG UK Click & Collect Review 2018 EXECUTIVE EXTRACT
Introduction
The IMRG UK Click & Collect Review 2018 is
designed to present an objective and pragmatic
view of the evolving click & collect landscape from
primarily a logistics perspective.
However, positioning it specifically as an e-logistics
innovation doesn’t give the full picture because it also has
a clear influence on sales conversion, customer satisfaction,
operational costs and even store design and location.
This is an Executive Extract of the full review which can Darko Atijas Andy Mulcahy Mike Richmond
be obtained at www.imrg.org/data-and-reports/imrg-reports Neopost Shipping IMRG Doddle
and which contains considerably more evidence, analysis,
insight and best practice examples. The full review provides
the foundation for retailer strategies and signposts areas Join our delivery experts to discuss the latest insights
for consideration when making decisions about the on Click & Collect and to share the key findings from our
deployment of click & collect solutions in light of: Click & Collect report:
• Customer profile and demographic
E-COMMERCE EXPO ONLINE WEBINAR
• Store network footprint or required reach
Delivery & Thursday 11 October,
• The desired customer experience. Logistics Theatre 2.00pm
Thursday 27 September, REGISTER AT:
11:45am–12:15pm bit.ly/IMRGClickCollect
2 | IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACTExecutive overview
Over the past ten years, click & collect has evolved from
a ‘substitute’ service option, to become a vital strategic
component of the UK e-logistic machine, without which
we will be unlikely to sustain the growth of online retailing.
ALL THE C’S
Click & collect benefits so many areas of e-retail, providing:
• Capacity and Contingency for the over loaded home delivery
channel
• Cost reduction opportunities for shoppers, retailers and delivery
companies
• Increased Choice and Convenience options for shoppers
• An enhanced Customer Experience for collections and returns
• A contribution to the reduction of urban Congestion – increasingly
associated with online delivery
• An aid to Conversion, increasing footfall and sales revenue for
retailers. Click & collect is not just a delivery option, it has become
a marketing channel.
IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACT | 3The state of play
Consumer awareness is firmly established at well • Better promotion and positioning by retailers – not an
after-thought but promoted alongside home delivery and MEETING CUSTOMER
over 90% and access, on the face of it, is not an issue EXPECTATION
with 40,000 parcel-points and parcel-lockers across other delivery offers on the home page navigation bar.
A clear opportunity exists
the UK, putting most shoppers within a few miles of • Differential pricing – click & collect, even third-party click for retailers to increase their
multiple locations. & collect has to be a cheaper option than home delivery. delivery options with 74% of
consumers saying they would
This may be basket value related to drive greater retail
However, click & collect represents perhaps 10% of all like to be able to collect in-store
value and order consolidation. but only 47% of UK retailers
online orders. Barriers to use remain and the apparent
customer demand is not yet matched by the wider UK • Greater use of agnostic networks to allow the recipient to currently offering that option.
e-retail industry: choose their most convenient pick up / drop off location. Source: Temando: ‘State of Shipping
in Commerce - UK 2017’
• Shoppers want click & collect to be at a lower cost The wider adoption and use of click & collect will enable
than home delivery, however, click & collect tends to the double digit growth UK e-retail has long enjoyed, to
be charged at the same rate or at a premium to home continue but without this we may find the UK e-logistics
delivery. machine struggling to cope with consumer demand.
• Shoppers would like to select the delivery location
most convenient to them but with most of the 40,000
locations aligned to carrier specific operators, the Fig 1. Have you, or those in your household, ever used Click and
Collect services?
customer has to use a number of locations.
• Shoppers want to have the click & collect option on all 0.7%
orders;. However, many retailers still do not offer a third-
party solution putting click & collect out of reach for
many of their prospective customers. Yes
28.4%
Click & collect is innovating to meet the needs and No - but I intend to use it in the future
expectations of the digital consumer, providing label-less,
58.8% No
browser less and contactless collection and returns. But
for the customer to get the full benefit of this requires: 12.0% I don’t know what that is
• Greater adoption by retailers so that this is a standard
delivery offer that consumers recognise and actively Source: IMRG UK Consumer Delivery Review 2017
consider on every purchase.
4 | IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACTMarket trend
Market
Although click & collect has become more popular,
AN OPPORTUNITY TO
trend
not all retailers offer it as a delivery option and of
those that do, not all provide more than one click
UK Carrier C&C Volume inc to store
UK Carrier C&C Volume inc to store
DRIVE FOOTFALL AND
Although click & collect has become more popular, not all retailers offer it as a Estimated C&C
Estimated C&C - Non– carrier
Non-carrier INCREMENTAL SALES
& collect variant.
delivery option and of those that do, not all provide more than one click & collect 300 Total C&C 3000
Third party click & collect is
variant. Many stillstill
onlyonly
offer the ‘in-store’ option and do not extend Total C&C
Many offer the ‘in-store’ option andbeyond
do nottheir
extend predicted to be the biggest
own networks to take advantage of third party parcel-point and locker providers to growth area in delivery
beyond
extend their coverage. their own networks to take advantage of third 250 2500 solutions in the next five years
party parcel-point and locker providers to extend their with value increasing by 107%
Using IMRG data and other volume information available to IMRG we can estimate
coverage. (GlobalData).
an overall forecast for UK online order volumes despatched from UK retailers and
200 2000
Using
the channels theyIMRG
may use data
overand other
the next volume
few years. information
In the chart below theavailable
columns For retailers struggling in the
representtoclick & collect volumes (left axis – millions of orders)
IMRG we can estimate an overall forecast for UK online and the lines harshest market conditions for
represent UK total delivered orders (right axis – millions or orders) decades, this trend presents an
order volumes despatched from UK retailers and the 150 1500 opportunity to drive valuable
channels
These forecasts they
suggest may
that usea 5over
against year the next
growth rate,few years.
for the Inofthe
volume chart
online footfall and incremental sales:
opposite, the columns represent click & collect volumes
parcel orders dispatched by UK retailers for delivery by carriers in the UK, of 52%
• 41% of click & collect shoppers
between(left
2017 axis
and 2022:
– millions of orders) and the lines represent UK 100 1000
• Home delivery volumes will increase roughly in line at 51% go on to purchase additional
• total delivered
Click & collect volumes orders (right95%
will increase axis – millions or orders). items (GlobalData: Click & Collect
• Overall click & collect will represent about 12.5% of all retailer generated in the UK 2017-2022)
These forecasts suggest a growth rate of 52% for the 50 500
volume • 58% of customers collecting
volume of online orders dispatched by UK retailers for
or returning a parcel in one of
delivery by UK carriers in the UK between 2017 and 2022: Doddle’s partner locations in
0 0
• Home delivery volumes will increase roughly in line at 51% 2017 2018 2019 2020 2021 2022 2023 2024 2025 early 2018 went on to make an
incremental in-store purchase
• Click & collect volumes will increase 95% (Data from Doddle customer
Source:
Source: IMRG
IMRG MetaPack
MetaPack Delivery
Delivery Index
Index – Forecast
– Forecast of volume of orders
of volume feedback survey 12 March -
• Overall, click & collect will represent about 12.5% of all ofdispatched from UKfrom
orders dispatched retailers for delivery
UK retailers in the UK
for delivery in the UK 5 July 2018, 8000 responses)
retailer generated volume.
IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACT | 5Access A major driver for the growth in click & collect is network coverage and level of access afforded to shoppers. Should retailers wish to extend their coverage beyond their own store networks and shoppers want to collect parcels locally there is no reason why they should not be able to, as the UK now has extensive coverage of parcel shop and locker locations. A key adoption driver is the distance a shopper is prepared to travel to collect / drop off a parcel and our research shows that three quarters would consider a 2 to 5-mile round trip - an average distance of 3.8 miles, especially as many would combine the job with other activity (trip chaining). This is confirmed by independent Citizens Advice research that finds ‘on average, consumers are willing to travel 3 miles to collect and return items’. The report goes on to show that 66% of UK consumers live within one mile of 5 parcel-point / locker locations. New developments in the market will continue to add to this coverage and we expect to see an increase in the deployment of agnostic third-party parcel-points and lockers with some being located within other retailers branded stores. This type of innovation allows all retailers to offer click & collect but sharing the cost with others. 6 | IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACT
Shopper motivation
Clearly consumer demand sits behind the click & • Returns: Third-party click & collect locations are
collect trend. Apart from the seasonal motivation for increasingly popular as returns drop-off points because
using click & collect we need to consider what drives they are so local and quick to use. Many third-party click
UK shoppers to use the service the rest of the year & collect networks are innovating in the returns space.
For example: Label-less returns systems, Credit on
and what barriers might exist.
receipt, Drop off and go.
• Location, Location, Location: We have already seen that
• Fear of missed delivery: Despite all recent innovations in
consumers are willing to make a round-trip on average
final mile delivery, not being at home to receive a delivery
of 3.8 miles to collect an order. Apart from where
is still a primary motivator in the use of click & collect for
the location is, shoppers are interested in the type of
almost a third of consumers.
location. Most preferred is the retailer’s own store but if
not within reach, third-party networks close the gap. • Speed of fulfilment: The speed in which the customer
can get their order may also be a motivator, when
• Additional delivery cost: The main reason that shoppers
combined with cost. ‘Because it is the quickest way to
opt for click & collect is because it avoids the cost or
get the items’ was offered as the most important driver
costs less than home delivery and this finding is backed
for the use of click & collect by respondents to the Global
Shopper up by the survey results on the right. GlobalData - Click &
collect in the UK – 2017-2022 - also reports that ‘To avoid
Data Click & Collect in the UK 2017-20122 survey.
motivation paying home delivery charges’ was also the top reason
rly consumer
for demand sits behindchoosing
its respondents the click &to
collect trend.&
use click Apart from(48%).
collect the Click & collect was chosen because of...
sonal motivation for using click & collect we need to consider what motivates UK
• Trip-chaining
ppers to use the service theconvenience:
rest of the year When it is
and what a taskmight
barriers thatexist. 45%
Click & collect was chosen because……. % of shoppers
can be performed with minimal effort and little or no 40% Men
ocation, Location, Location:
incremental cost asWepart
haveofalready
normal seen that consumers
routine – going to are willing 35%
Women
make a round-trip
work, the school run, a shopping trip etc. As well as where
on average of 3.8 miles to collect an order. Apart from
% of shoppers
30%
Average
e location minimising
is, shoppers are interested in
incremental the and
time type of location.
cost thereMost preferred
is also a is the 25%
tailer’s own store but if not within reach, third-party networks close the gap. 20%
positive environmental impact for those so motivated.
dditional delivery cost: the main reason that shoppers opt for click & collect is 15%
ecause it•avoids
Touchthe andcostTry:
or costs less thanshoppers
Sometimes home delivery and thisto
do prefer finding
see, is 10%
5%
acked up by feel, and try what they are buying, and this motivatorUK –
the survey results below. GlobalData - Click & collect in the
0%
017-2022 -clearly
also reports
lendsthat ‘To avoid
itself payingclick
to in-store home&delivery
collectcharges’
although was also the Shipping op2ons wereClick & collect is moreShipping op2ons were I know I am not going Click & collect is free /
p reason for its respondents choosing to use click & collect (48%). not fast enough convenient for me not convenient to be at home to cheaper than home
there are independent third-party locations that provide accept delivery delivery
rip- chaining convenience: When it is a task that can be performed with minimal
these
fort and little or nofacilities.
incremental cost as part of normal routine – going to work, the
chool run, a shopping trip etc. As well as minimising incremental time and cost
ere is also a positive environmental impact for those so motivated
ouch and Try: Sometimes shoppers do prefer to see, feel, try what they are
uying, and this motivator clearly lends itself to in-store click & collect although IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACT | 7
ere are independent third-party locations that provide these facilitiesOperational and strategic considerations
(for retailers)
IN-STORE
Operational Best practice for in-store click & collect now includes:
and strategic • Specific click & collect locations conveniently located
issues to consider for easy customer access
depending on – Clear signage
• Dedicated dressing rooms
Click & Collect • Capacity and resource monitoring to identify pinch
offering. points (especially at peak) including diversion of
orders to third-party locations if necessary
• Trained staff on hand to help if required
• Arrival scan – to advise that the shopper has arrived
and to commence order retrieval
• Pick-up time advice – how long will the shopper
have to wait
• Automated recovery of click & collect orders
• Self-serve kiosks
• Drive thru – orders brought to the customers car
• Fulfil from store stock or as part of the normal
fulfilment cycle, potentially from an adjacent
store (requires very good inventory visibility and
management):
– Allows same day / next day collection
– Keeps distribution costs down
– Allows unwanted orders to be returned to store
stock or central distribution as part of the normal
fulfilment cycle
8 | IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACTOperational and strategic considerations
(for retailers)
THIRD-PARTY
Customer experience Delivery channel
• Can the customer experience be consistent with the • Does the retailer use multiple carriers /dynamic
retailer’s brand? carrier selection?
• Can information about when and where customers collect • Does the operator deliver to its locations 7 days a week?
from help predict future use? • Does the operator deliver at any particular time?
• What type of network will suit the customer demographic? • What is the latest acceptance time for orders to enter the network?
• Commuter – transport related locations? • How and when will orders be collected or must the retailer deliver
• Is label-less dispatch available – print labels in location to the network?
– for customers without home printers? • Speed of delivery – how fast will orders be in location and ready
to collect?
Coverage and reach
• Is the network coverage sufficient to place locations within Returns offer
easy reach of customers? • What is the speed of the returns service?
• Could the network overlap with the retailer’s stores and • Is there likely to be a high level of returns and will a ‘two-way’
deprive them of footfall, both digital and physical? proposition through a common network be attractive?
• Can the network reach cross-border customers? • How are returns delivered back to the retailer?
• Likely customer awareness of network brand?
Management
Cost • What tracking capability is provided?
• Does the pricing model enable click & collect to be offered • What management information is provided?
at a lower rate than home delivery?
• Can information about when and where customers collect from
• Are there are pricing benefits as a result of delivery help predict future use?
consolidation?
• What integration options are available to make the service available
on the retailer’s website and to produce labels and routing
instructions?
• How long will integration take and at what cost?
IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACT | 9Strategic questions
What incremental costs can click & collect incur and what Can click & collect lower Can click & collect support
implications are there for store operations? distribution costs and drive cross-border online retailing?
Additional / alternative costs do need to be considered when deploying click out avoidable costs associated The shopper may come across the
& collect, subject to the options selected: with home delivery? product they want, at an attractive
The opportunity to lower distribution price on a non-domestic website
In-store – often free to the Parcel-Points and Parcel lockers: costs using click & collect certainly but with a brand they do not
customer so a full understanding • Integration – this is the process exists. In-store click & collect can recognise or have experience of in
of incremental costs is important: by which the third-party operator allow in-store click & collect can terms of delivery service. However,
• Service specific staff training provides information to allow the allow retailers to optimise their if the shopper is familiar with
retailer to access the network and distribution operations to supply the parcel-point or parcel-locker
• Store layout
then accepts information to allow the order from existing store stock solution the retailer uses,
• Dedicated collection points the management of parcels or have it delivered to the store as any concerns are reduced.
• Shopper queuing and order through its network. part of the usual fulfilment cycle,
retrieval systems. • Promotion – to get the benefit although it is important that all
of click & collect the service will other in-store click & collect costs
have to be widely promoted to are properly accounted for.
customers by the retailer.
This will involve:
• Training – customer service
teams will need to understand
the solution and how to help
customers get the best from it.
10 | IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACTStrategic questions
Can click & collect provide an How can click & collect and Does click & collect better How are retailers able to square
opportunity for online virtual stores / Pop-Up stores enable returns management? the circle of online click &
fraudsters? work together? This is clearly an important area for collect competing with in-store
CCTV in stores and parcel-points Both store models can be used as a many retailers as the recent ‘State purchasing – collections and
can act as some deterrent. Locker click & collect location, inviting the of Shipping’ survey shows, with returns?
locations often have front and rear customer back to collect / inspect / 63% of enterprise retailers admitting Most retailers solve this problem
CCTV for this reason as well as for try on their purchase; managing the that their returns process is slow and encourage multichannel
customer security and parcel- returns process efficiently should and 53% finding it hard to manage. behaviour for stores by allowing
lockers provided by the likes of any of the order not be required. • In-store click & collect can click & collect orders and online
InPost and Packcity have security certainly reduce the cost of returns to be allocated to both the
cameras in-built. However especially returns provided the in-store online operation and / or the store
for first time customers, retailers process is quick and efficient. whose catchment area covers the
should consider measures to customer’s home address.
mitigate this risk. • Parcel-store and locker click &
Source: The State of Shipping in Commerce
collect solutions are fully tracked
– UK - 2017 - 275 retailers surveyed. and having early visibility of
returns can assist the retailer.
The local nature of parcel-point
and parcel-locker locations also
provides a more convenient drop
off for the customer and so aids
customer retention.
IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACT | 11About the authors
For over 20 years, IMRG (Interactive Media in Doddle’s mission is to make collecting and Neopost Shipping, a division of Neopost Group,
Retail Group) has been the voice of e-retail returning online shopping simple, hassle free and is a market leader in eCommerce supply chain
in the UK. We are a membership community rewarding for customers and retailers alike. solutions from cart-to-customer.
comprising businesses of all sizes – multichannel
Doddle partners with over 50 of the UK’s most Through its integrated product portfolio and
and pureplay, SME and multinational, and
popular online retailers including Amazon, extensive partnerships, Neopost Shipping
solution providers to industry.
ASOS, New Look, Missguided and Wiggle. When enables merchants, technology providers and
We support our members through a range of customers select Doddle they can pick up or carriers to place the customer at the heart of the
activities – including market tracking and insight, return their online shopping in a network of delivery experience.
benchmarking and best practice sharing. Our premium click and collect locations, including
The result is increased connectivity, efficiency,
indexes provide in-depth intelligence on online Morrisons and Debenhams stores nationwide.
customer experience and intelligence across
sales, mobile sales, delivery trends and over 40
Retailers can partner with Doddle in three ways the supply chain. The company has more than
additional KPIs.
to enable them to offer sector leading Click & 400 employees with offices in Europe, North
Our goal is to ensure our members have the Collect services: America and Asia-Pacific and their solutions
information and resources they need to succeed process hundreds of millions of shipments and
• They can offer Doddle as a seamless click and
in rapidly-evolving markets – both domestically billions of data transactions annually.
collect and returns service for their customers
and internationally.
Read more: shipping.neopost.com
• They can deploy Doddle collection points in
their stores as a way of driving footfall and
incremental sales
• They can use ‘Powered by Doddle’, Doddle’s
retail technology platform, which enables
retailers to rapidly roll out the very latest
fulfilment technology solutions customisable
to their own brand
Doddle is headquartered in London with
regional teams and partners in Australia, US,
Europe and the Middle East.
12 | IMRG UK Click & Collect Review 2018 | EXECUTIVE EXTRACTYou can also read
