Delivery failures costing retailers £3bn over Christmas

UK retailers could be collectively missing out on over £3 billion due to delivery failures over the Christmas period, according to new statistics.

The research, undertaken by The Institute of Customer Service, discovered that 16 million UK customers experienced delays with their deliveries over last year‘s festive season – and for that reason, 73 per cent of whom were avoiding the offending retailers this year. 

Consumers also said they spent an average of over £250 with retailers who failed to deliver on time, and the average delay facing frustrated shoppers was 5.3 days – notable regional differences.

“UK retail businesses need to take these findings seriously, as failings arising from their own processes, or chosen logistics suppliers, could have serious implications for their own bottom line,” The Institute of Customer Service chief executive Jo Causon said.

READ MORE: Consumers could be owed £4.1 billion in delivery fees this Christmas

“Our research shows online shoppers are prepared to vote with their wallets, and take their custom elsewhere if deliveries – a crucial part of the retail customer service experience – are not up to scratch.

“There is a real emotional cost to consumers when deliveries go awry – particularly around the Christmas period when customers are anxious to receive Christmas presents and festive purchases on time. 

“This emotional cost can soon become a real cost to retailers when customers lose trust and take their business elsewhere.” 

Causon added that it when it came to online retail, a focus on getting it right the first time was paramount.

“Shoppers have so much choice – they are no longer limited to what is on their high street,” she said.

“This means the consumer is increasingly powerful and able to desert companies when service isn‘t measuring up – and companies may only get one chance to show they can deliver.”

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