Click & collect to grow to almost £10bn

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Click & collect
// The UK click-and-collect market is predicted to grow to £9.8bn by 2023
// This is a rise of 45.8%
// Clothing & footwear the largest sector, accounting for 59.9% of spend in click & collect

The UK click-and-collect market is expected to grow to almost £10 billion by the year 2023.

According to analytics firm GlobalData, click-and-collect is set to rise 45.8 per cent over the next five years to reach £9.8 billion, but the growth is expected to decline as the fulfilment method services offered by retailers are better developed.

The report found that clothing and footwear is by far the largest sector within the click-and-collect market, accounting for 59.9 per cent of spend in 2018.

Many multichannel retailers have extended order cut off times in recent years to increase speed and minimise costs.

“Although 79.9 per cent 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 per cent,” GlobalData retail analyst Emily Salter said.

“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 many multichannel retailers that recently provided a click-and-collect proposition to rival the speed and cost of home delivery.

A total of 39.2 per cent customers bought an additional item while collecting their last order, reflecting that additional purchases increase the importance of click-and-collect to retailers.

“A number of factors will inhibit growth of the click-and-collect channel, including store closures,” Salter said.

“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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