Online delivery and ‘Click and Collect’ to double in 10 years

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Online delivery and Click and Collect are set to double in the UK over the next decade because 40 per cent of non-food sales will be made online, research by OC&C Strategy Consultants has found.

coffee-desk-laptop-notebookThe consultancy said that unless retailers tackle the ‘economics of the ‘last mile’ head on’, they could have their margins cut by up to 1.5 per cent.

By 2025, OC&C expect home delivery to be responsible for 30 per cent of sales (£69 billion) and Click and Collect representing 10 per cent of the market (£23billion). It predicts in-store purchases will decline by 60 per cent (£138 billion).

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

“When six in ten shoppers abandoning baskets online are doing so because of issues relating to the last mile, it’s clear that investing only in the front end of e-commerce is no longer sufficient. The last mile is fast becoming the ultimate battleground for retailers as shoppers demand more convenience. 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.”

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