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Click-and-collect growth to outperform online

Click-and-collect growth is predicted to outstrip online retail growth, according to GlobalData.

The Click & Collect in the UK, 2017-2022 report from GlobalData revealed that click-and-collect sales are set to rise by 55.6 per cent over the next five years to reach £9.6 billion in 2022.

Click-and-collect sales are also predicted to account for 13.9 per cent of total online spend in 2022.

However, growth in click-and-collect is expected to slow from double-digit growth to single digits by 2020 as the market matures.

Sales will be impacted as retailers continue to close unprofitable stores, with physical locations struggling against the online channel, which in turn will reduce the number of click-and-collect locations.

Electricals, which is the second largest sector in this channel after clothing and footwear, will lose share to 2022 as online electrical sales become further saturated and growth slows.

The report also revealed that click and collect user satisfaction fell by 11.2 per cent from 89.6 per cent in 2016 to 78.4 per cent in 2017.

Retailers are failing to provide an adequate experience for click-and-collect users, with high expectations looking for a fast and hassle-free service, GlobalData argued.

Charlotte Pearce, retail analyst at GlobalData, said: “Click-and-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-and-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.

“Retailers that do offer click-and-collect must invest in their service to reduce pain points in the customer journey, such as long queuing 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.”

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