Click and Collect: Retailers Expanding Store Pick-Up Options, Says Colliers Report
As e-commerce continues to grow, the number of consumers picking up online purchases in stores is increasing, according to a report by Colliers International.
The share of consumers who say they regularly use “click and collect” purchasing has almost doubled over the past five years. According to the report, the percentage of consumers who say they regularly collect online orders from a physical store jumped from 17.2 percent in 2013 to 38.5 percent in 2018.
There’s an additional bonus to this trend: More customers visiting stores means more incremental purchases. Colliers reports that the majority of consumers who pick up online orders from shops go on to make additional purchases in the store. On average, an additional $8.59 is spent. Across all transactions in 2017, this equated to an extra $1.14 billion spent in shops.
The numbers Colliers analyzed come from the GlobalData Consumer Panel, which surveys 5,000 shoppers each year.
A number of retailers, such as Walmart, have expanded their “click and collect” services in recent years, oftentimes offering customers discounts for picking up over having orders delivered.
Retail On A Roll
“The bad press about the nation’s shopping centers continues, but meanwhile, physical retail is on a bit of a roll,” says Andrew Nelson, chief economist of commercial real estate at Colliers. “With unemployment at a 17-year low, home prices at new highs and wages finally starting to climb, consumers are feeling confident enough to increase their shopping — in stores as well as online.”
Across the entire retail sector, elevated levels of shopping and higher levels of spending mean that consumers are now visiting more stores to browse and buy. Within the sector, apparel has seen the most growth.
According to the report, consumers visited an average number of 5.7 apparel retailers during the second quarter of 2018, up from 4.5 during the same period in 2017. The homewares sector also experienced marked growth, with consumers visiting 2.2 homewares retailers in the second quarter, up from 1.5 during the same period in 2017.
“The strengthening of spend on apparel has resulted in a significant uplift in the number of retailers being used since last year,” says Anjee Solanki, national director of retail services at Colliers.
In terms of overall spending growth, beauty continues to be the strongest sector with a 5.1 percent year-over-year growth. This is fueled by a number of trends that include an aging population and strong retailers like Sephora and Ulta.
Apparel is now the second-fastest growth category within retail with 4.9 percent year-over-year growth. The homewares segment also continues to benefit from a relatively strong housing market with a 4.8 percent year-over-year growth.
“It’s safe to assume that the retail revolution is underway,” says Solanki. “Fueled by innovation and inspiration from some unlikely places, brands are stepping up to capture consumers’ attention every which way.”
— David Cohen