Click and Collect Grocery beats delivery?
“Click and collect offers retailers not only a service opportunity but the chance to reduce delivery costs”
A recent article posted by Talkingretail.com discusses the growth in on-line grocery sales and the questionable sustainability of home delivery versus the increasing popularity of Click and Collect Grocery Collection Services.
Delivery costs – absorbed by retailers and rejected by shoppers
The article goes on to highlight that “the major grocery operators will charge up to £5 for home delivery (sometimes as little as £1 and free above a certain level), while the actual cost of packing and delivering is considered by some analysts to be much higher in the region of £12-15, effectively making home delivery an unsustainable loss-leading service as retailers battle for market share. Yet it is the amount of retail space that the retailers have opened which is seen as the main cause of their demise”
So how long will retailers go on subsidising grocery home delivery? With the growing grocery trends of convenience shopping, smaller baskets and little and often, are “big” home delivery shops costing £5 what the consumer wants?
Multi channel retail is the answer
Click and Collect offers retailers not only a service opportunity but the chance to reduce delivery costs, notably the costs incurred when a customer is not at home. All the major players now offering a Click and Collect Service in-store and an increasing number of shoppers are using it. And as its operated at a store with existing staff and infrastructure costs its usually free to shoppers, a big draw to the ever cost concious consumer.
Click and Collect Drive Thru Grocery Service
Having originally started in Europe some 5+ years ago, Drive Thru Grocery Collection is now firmly established as the norm over home delivery for many European grocery shoppers. Now growing steadily in the UK, Drive Thru Grocery Collection is now offered by most of the major players along with an in-store Click and Collect service, and an increasing number of shoppers are using it.
Collection Convenience is key
Having designed and implemented Drive Thru Grocery Collection services for ASDA and Tesco, the founders of Collectec have much experience in what attracts shoppers and makes a service efficient for the retailer. Starting from the ground up, the Collectec team work with retailers on all aspects of a Drive Thru Collection Service. Placement/layout, lane design, customer kiosk interface, order management and collection task processing are just some of the area we help define.
All of this needs to remain focussed on convenience to be successful, make customers work hard for their collection and they wont use it again. The technology used also has convenience at the centre of its development, allowing any shopper to use the service and feel comfortable in doing so is vital. This is why Collectec offer customers multiple ways to “check-in” with the store and confirm they are ready to collect, from Beacons to scanning printed emails, Collectec provide simple, intuitive and informative collection tools for consumers and retailers.
A link to the full article on Talkingretail.com can be found here
To find out how Collectec provide simple to operate, convenient and sustainable Drive Thru Grocery Collection click HERE