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UK retailers predict Click & Collect surge over the Christmas trading period

With Christmas just days away, retailers are gearing up for a surge in Click & Collect orders resulting from booming online sales over the festive period. According to independent research commissioned by Barclays’ Retail & Wholesale banking sector team, retailers say they are set to see growth of 49% in Click & Collect orders over Christmas, on top of impressive growth last year, which saw 5.7million* consumers using Click & Collect during the week of Christmas in 2013.

This predicted spike comes with an increased confidence about Christmas trading - 70% of retailers say they are feeling more confident compared to last year, when just over half (52%) were feeling optimistic about the trading period ahead.

Additional research from Barclays’ Last Mile* survey also revealed the rise in demand for Click & Collect is being met head on by retailers, with nearly half (43%) investing in this type of delivery option. Most retailers (84%) believe Click & Collect has become a permanent fixture within the delivery market and 71% see it as critical to their business success. Over a third (38%) of retailers are expecting usage to soar more over the next four years than any other delivery option.

The ecommerce and delivery market landscape is predicted to continue to change with Click & Collect becoming more crucial to retailers and consumers alike by 2018. Deliveries direct to a consumer’s address are predicted to decrease from 72% to just over 64% of total physical deliveries over the next four years whilst Click & Collect volumes are anticipated to rise to just under 35% from 26%. This growth may be a result of consumer collection services offering shoppers a more manageable, flexible and often cheaper solution to daytime home delivery.

Currently, the UK is the most active nation in terms of Click & Collect services, compared to the US, France or Germany. However, France’s Click & Drive supermarket collection points are an integral part of its delivery networks. Similarly, US-based retailer The Container Store, a specialist retail chain, allows consumers to shop online and collect their orders in under an hour of purchase, and as part of the initiative, staff bring consumers’ shopping straight to their cars.

Richard Lowe, Head of Retail & Wholesale at Barclays, commented: “According to a recent report one in ten consumers fell victim to late deliveries last Christmas* and it’s clear to see how Click & Collect offers a practical, alternative solution. Amazon has also recently partnered with Royal Mail, allowing shoppers to collect their parcels from their local Post Office, and I believe we will increasingly see this kind of tie-up. These developments can only be good news for consumers, offering them increasing levels of choice and the confidence that their gifts will make it under the Christmas tree in time.”
 

Notes to editors

For further information about Barclays Corporate Banking, please visit our website www.barclayscorporate.com

Barclays’ Christmas survey was undertaken by Conlumino research agency in September and October 2014, over 350 UK retailers were surveyed. The stat about consumers’ use of Click & Collect over Christmas week in 2013 is taken from Conlumino’s own research.

The Last Mile is a term in the Retail and Transport and Logistics industry which describes the last part in the goods delivery process – covering the distance from the warehouse or depot to the customer’s chosen delivery address.

The Barclays Last Mile survey was undertaken in August 2014 by Conlumino. Conlumino spoke to a representative sample of over 2,000 UK consumers to understand usage, preferences and likes and dislikes of delivery after having ordered online. Informal interviews were also conducted with around 50 retailers and logistics firms to understand their key issues, challenges and opportunities within the fulfilment space.

Report referred to in Richard Lowe’s quote:
http://www.which.co.uk/campaigns/dodgy-deliveries/christmas-shoppers-put-off-by-poor-parcel-service/

About Barclays

Barclays is an international financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth management with an extensive presence in Europe, the Americas, Africa and Asia. Barclays’ purpose is to help people achieve their ambitions – in the right way.

With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 135,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.

For further information about Barclays, please visit our website www.barclays.com.