Table of Contents
Overview
-
- What you need to know
- Products covered in this Report
Executive Summary
-
- The market
- Online retailing continues its double-digit growth
-
- Figure 1: All online retail sales and online sales as a % of all retail sales, Including VAT, 2011-16
- Online retailing continues its double digit growth
-
- Figure 2: Store-based and online-only retailers share of all online sales, Jan 2008- Jul 2016
- Consumer confidence recovering following Brexit result
- Collection market valued at an estimated £7 billion in 2015
-
- Figure 3: Estimated percentage of all retail online sales (including VAT) accounted for by collection and delivery, 2013-16
- Innovations
- Drones incoming
- Chop Chop
- The consumer
- Delivery still most regularly used
-
- Figure 4: Delivery methods used in the last 12 months, August 2016
- A more even distribution of returns
-
- Figure 5: Method of returning items that were delivered/collected in the last 12 months, August 2016
- Products delivered and collected
-
- Figure 6: Products delivered and collected, August 2016
- Most find delivery more convenient than collection
-
- Figure 7: Why delivery is used most often, August 2016
- Fear of the redirect driving collection usage
-
- Figure 8: Why click-and-collect/reserve-and-collect is used most often, August 2016
- Plain and simple
-
- Figure 9: Attitudes to speed, pricing and convenience of retail collection and delivery services, August 2016
- Rising costs would turn people away
-
- Figure 10: Attitudes to changes and innovations in delivery and collection services, August 2016
- What we think
Issues and Insights
-
- Delivery passes: Worth the cost of entry?
- The facts
- The implications
- Drones: The next frontier for retail logistics?
- The facts
- The implications
- Gearing delivery options to ease pressure on logistics
- The facts
- The implications
The Market – What You Need to Know
-
- Online retailing continues to grow…
- …and online-only retailers continue to gain share
- Market for express services on the rise
- Consumer confidence hit in the wake off Brexit, but has begun to recover
- Collection to represent almost a fifth of the online market in 2016
Market Drivers
-
- Online continues to grow strongly
-
- Figure 11: All online retail sales and online sales as a % of all retail sales, including VAT, 2011-16
- Online-only retailers gaining online market share
-
- Figure 12: Store-based and online-only retailers share of all online sales, Jan 2008- Jul 2016
- Seasonal variation in demand
-
- Figure 13: Online retail sales as a % of all retail sales, Jan 2014-Sep 2016
- Demand for courier services growing
-
- Figure 14: UK market for courier and express delivery services, 2011-15
- Consumer confidence took an initial hit following Brexit
-
- Figure 15: How consumers describe their current financial situation, Aug 2015 – Sep 2016
-
- Figure 16: Trends in consumer sentiment for the coming year, Aug 2015 – Sep 2016
Collection Market Size
-
- Collection market continues to grow
-
- Figure 17: Estimated value of click-and-collect orders (including VAT), 2013-16
- Figure 18: Estimated percentage of all retail online sales (including VAT) accounted for by collection and delivery, 2013-16
- Collection breakdown
-
- Figure 19: Estimated breakdown of the value of collection orders, by where orders are collected, 2015
- Grocery under-indexes in terms of collection
-
- Figure 20: Collection as an estimated proportion of online sales, by grocery and non-grocery, 2013-16
- Other considerations
-
- Figure 21: Estimated market size for traditional non-store retail sales (including VAT), 2013-16
The Consumer – What You Need to Know
-
- Delivery remains the most used
- Size matters
- Delivery is simply more convenient for many consumers
- Missing deliveries a driver of collection usage
- Keep it simple
- Collection and delivery passes can drive sales
Delivery and Collection Usage
-
- Over half have collected goods but most still regularly use delivery
-
- Figure 22: Delivery methods used in the last 12 months, August 2016
- Home delivery remains most used
-
- Figure 23: Detailed delivery methods used in the last 12 months, August 2016
- Collection skews younger
-
- Figure 24: Detailed delivery methods used in the last 12 months, by age, August 2016
- Use of collection also tied to working status
-
- Figure 25: Detailed delivery methods used in the last 12 months, by working situation, August 2016
- Repertoire of delivery services used
-
- Figure 26: Repertoire of delivery methods used in the past year, August 2016
- Method of returns
-
- Figure 27: Method of returning items that were delivered/collected in the last 12 months, August 2016
- Back from whence you came
-
- Figure 28: Method of returning items that were delivered/collected in the last 12 months, by delivery services used most often in the last 12 months, August 2016
Products Delivered and Collected
-
- Clothing the most delivered and collected
-
- Figure 29: Products delivered and collected, August 2016
- Female consumers most likely to collect clothing
-
- Figure 30: Clothing, shoes and accessories: level of delivery and collection usage, by gender, August 2016
- Groceries
-
- Figure 31: Groceries and alcoholic beverages: level of delivery and collection usage, by age, August 2016
- Repertoire of products delivered and collected
-
- Figure 32: Repertoire of products delivered and collected in-store, August 2016
-
- Figure 33: Repertoire of products delivered and collected in-store, by age, August 2016
Why They Use Home Delivery Most Often
-
- Almost half of home delivery users find it more convenient than click-and-collect
-
- Figure 34: Why delivery is used most often, August 2016
- Delivery more important to those living outside of urban areas
-
- Figure 35: Why delivery is used most often, by location lived in, August 2016
- Delivery passes also encourage delivery use
-
- Figure 36: Why delivery is used most often, by ownership of a delivery pass and age, August 2016
- Other considerations
-
- Figure 37: Why delivery is used most often, August 2016
Why They Use Collection Most Often
-
- Avoiding the redirect
-
- Figure 38: Why click-and-collect/reserve-and-collect is used most often, August 2016
- Price a decider for collection
-
- Figure 39: Convenience and pricing as a driver for delivery method usage, August 2016
- Returns also a driver of collection usage
-
- Figure 40: Why click-and-collect/reserve-and-collect is used most often, August 2016
Target Groups
-
-
- Figure 41: Attitudes to speed, pricing and convenience of retail collection and delivery services, August 2016
-
- Figure 42: Target groups for delivery and collection services, August 2016
- The three target groups
- Age a deciding factor in preferences
-
- Figure 43: Profile of target groups, by age and socio-economic group, August 2016
- Urbanities speed focused
-
- Figure 44: Target groups, by area lived in, August 2016
- Speed can be a deciding factor on where to shop
-
- Figure 45: Agreement toward statements around the speed of delivery or collection services, by target groups, August 2016
- Half would rather buy in-store than pay for faster delivery
-
- Figure 46: Agreement toward statements around the convenience of delivery or collection services, by target groups, August 2016
- Keeping it simple
-
- Figure 47: Agreement toward statements around the ease of use and innovations of delivery and collection services, by target groups, August 2016
-
Attitudes to Delivery Methods
-
- Imperative that retailers keep online delivery costs down
-
- Figure 48: Attitudes to delivery and collection options and pricing, August 2016
- Younger consumers struggle with the selection of delivery options
-
- Figure 49: Agreement to statements around delivery and collection options and pricing, August 2016
- Retailers could benefit from encouraging returns in-store
-
- Figure 50: Attitudes toward collecting and returning products, August 2016
- Younger males more likely to be tempted by impulse purchases
-
- Figure 51: Agreement to the statement “click-and-collect encourages me to make more impulse purchases”, by age and gender, August 2016
- Delivery passes encourage usage
-
- Figure 52: Attitudes to subscription services and innovations in retail fulfilment, August 2016
- Younger consumers more interested in delivery passes
-
- Figure 53: Attitudes to subscription services and innovations in retail fulfilment, by age, August 2016
- Postman public
-
- Figure 54: Attitudes to subscription services and innovations in retail fulfilment, August 2016
- Urban drones
-
- Figure 55: Attitudes to the statement “Drone delivery is something that interests me”, by area lived in, August 2016
Leading Players – What You Need to Know
-
- Online market shares
- Amazon: aiming to control more of its delivery network
- Ocado: growth coming through logistics investment
- Argos: integration with Sainsbury’s now key
- Growing demand for courier and collection services
- Innovations
Competitive Strategies – Leading Players
-
- Leading online players
-
- Figure 56: Top Ten leading online retailers, by share of all online retail sales (excluding VAT), 2015
- Amazon
- Argos and Sainsbury’s
- John Lewis Partnership
- Ocado
Competitive Strategies – Leading Delivery Operators
-
- Courier and express delivery
- Royal Mail
- Dynamic Parcel Delivery
- DHL International
- Hermes
- UPS
- Yodel
- TNT
- DX Group
- UK Mail Group
- Third-party collection
- Doddle
- Collect+
- InPost
Innovations
-
- Convenient delivery
- Chop Chop
-
- Figure 57: Chop Chop: How it works, September 2016
- To me ToYou
- Helping small businesses compete in the logistics battle
- The shopping centre of the future?
-
- Figure 58: An artist’s impression of the new Funan shopping mall Singapore, September 2016
- Drones of the future
-
- Figure 59: Prototype Amazon Prime Air Drone
- At the press of a button
-
- Figure 60: Amazon Dash Buttons
- Slimming down to stay in shape
-
- Figure 61: Ikea Order and Collect, Westfield Stratford, September 2016
- Putting the boot in
- Home lockers
- Click-and-don’t collect
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Data sources
- VAT
- Financial definitions
- Abbreviations
- Consumer research methodology
Back to top