UK Retail Businesses to Benefit from Surge in Online Delivery and ‘Click-and-Collect’ Sales

New data reports that 40% of non-food sales in the UK will be made online by 2025, with instore purchases declining to just 60%

UK Retail Businesses to Benefit from Surge in Online Delivery and ‘Click-and-Collect’ Sales

UK online delivery and ‘click-and-collect’ sales will double over the next 10 years and will determine which retail businesses succeed and fail, according to a report by OC&C Strategy Consultants.

The findings suggest that, unless retailers tackle the economy of the ‘last mile’, their margins could fall by as much as 1.5%.

The data suggests that 40% of all non-food sales in Britain will be made online by 2025, with instore purchases declining to just 60%.

Customers are also increasingly looking to receive their purchases faster; between 2013 and 2015 the proportion of shoppers opting for next-day delivery grew by 50%.

With 60% of online baskets abondoned due to delivery-related issues, retailers are being urged to take action to improve their e-commerce offering and customer service.

Anita Balchandani, partner and head of retail at OC&C Strategy Consultants, said:

“Being able to offer predictable delivery slots, free next-day delivery and an accessibly priced same-day service is becoming the norm.

“The challenge retailers face is how to meet these changing expectations while making the economics work for their business

“Retailers should start to rethink activities like warehousing, picking and packing and delivery in order to make them more cost effective.”

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