Collection Point Strategies in European Retail: Click and Collect Innovations Driving Online Spend
Report description
Rising demand for convenient delivery options is resulting in retailers launching a range of collection point strategies, helping them to extend their customer base, boost cross channel sales and reduce delivery failures. Logistical companies are also developing their own innovative models in the field, giving retailers diverse opportunities to maximize take up of the lucrative online channel.Develop plans to grow your online customer base by uncovering the barriers to internet shopping and what other retailers are doing to overcome them. Reduce failed deliveries by encouraging shoppers to collect orders and identify the most effective promotional methods to market the service. Extend the range of click and collect options available to your shoppers by discovering an array of innovative providers of collection services. Maximize cross channel sales opportunities by uncovering which products and services can be sold alongside collection points to boost upsell. Stay ahead of the competition through in-depth analysis of key players' click and collect strategies across Europe. According to the Datamonitor FSCI survey, an average of 14% of consumers per country that had never shopped online cited inconvenient delivery times as a reason. Adding click and collect options will attract shoppers that are rarely at home to collect deliveries, maximising the customer base, while saving on delivery costs. French PUDO point provider Mondial Relay offers its Point Relais Drive pick up point for large and heavy packages that would not fit into standard PUDO points in small cornershops. This has allowed Mondial Relay to partner with retailers selling large items, such as furniture and large domestic appliances. European department stores are among the most active in click and collect services, with most creating dedicated instore collection points. House of Fraser has launched a click and collect format in Aberdeen, making its online store accessible to shoppers in remote parts of the country as well as acting as a brand touch point for the retailer. How can I boost my online sales while simultaneously attracting footfall to my physical stores? What partners can I use where I don't have stores? How can I save costs by reducing failed deliveries, limiting storage fees and create a denser network of delivery destinations? How can I optimize my collection points instore to increase uptake of my click and collect service? How should I advertise them online and instore? What social and behavioral factors are impeding uptake in online shopping and how can implementing click and collect help me overcome this? What types of strategies have my competitors adopted to make fulfillment more convenient? Who offers PUDO, locker and instore services?
Table of contents
OVERVIEW
•About the report series
•Introduction
STRATEGIC ACTION POINTS
•Make the click and collect option free of charge where possible
•Offer a wide choice of payment to encourage greater take up
•Try to use the click and collect points as a further opportunity to market your brand
•Ensure high levels of customer service at the pick up point
•Make the click and collect service as straightforward as possible
•Consider offering a reserve and collect service to gauge appetite for click and collect
•Extend your service to other fascias belonging to your group
•Consider partnering with another retailer to act as a pick up point for your products
•Shout about the click and collect service
•Consider alternative locations for your collection points
•Provide seating in the collection area and strive to create a welcoming ambience
•Train staff members to promote the online store
•Extend the instore collection service to as wide a range of products as possible
•Offer as many options as possible to maximize exposure and customer base
•Add complementary products and services to the collection point
STRATEGIC MOTIVATIONS
•Changing consumer demographics are facilitating uptake in click and collect services
Adding a click and collect option can greatly boost the uptake of online shopping
Countries with low population densities have potential for third-party pick up points
Increasing car ownership is making the click and collect option more convenient for online shoppers
As consumers are spending more time in the work place, home delivery is no longer the most viable option
The number of households with all adults working full time is on the rise
Click and collect instore often reduces delivery costs for the customer
•Click and collect can help retailers boost online sales and stay ahead of the competition
Click and collect allows retailers to remain competitive as more rivals offer increasingly flexible options
Click and collect helps retailers to extend their brand reach
The click and collect option cuts retailers' costs by reducing delivery failure
Offering click and collect instore helps retailers boost instore sales
Longer opening hours at third-party sites offer shoppers extended access to a brand
Click and collect services create more touch points and greater brand presence
The service helps retailers to overcomes hurdles faced by fuel shortages and high road traffic
Click and collect can help retailers to boost their green credentials
Partner retailers can gain extra revenues and footfall by providing PUDO points for complementary retailers
STRATEGIC CONSIDERATIONS
•A range of click and collect models are available to retailers pursuing the strategy
Specialized PUDO point providers greatly extend an online retailer's physical reach
Click and collect services in branches of the national postal service are trusted but opening is limited
Specialized storage facilities are the most convenient in terms of opening hours
The click and collect instore option encourages customers to shop across both channels
•Retailers partnering with a PUDO point provider need to consider whether the partner stores complement the retailer's brand image
•Retailers using post offices as pick up points need to consider the opening hours of the branches
•Retailers making use of parcel lockers should first determine the size and weight restrictions of the facilities
•Retailers using their own store network as collection points should bear in mind the extra staffing and training costs involved
STRATEGY IN FOCUS
•PUDO point providers are prevalent in Western Europe
Kiala has 7,000 PUDO points, which serve over 300 companies in five European countries
Collect+ was created by Yodel and PayPoint to serve as click and collect points in the UK
Mondial Relay operates the Point Relais Drive points in France for oversized parcels
Relais Colis is a close competitor to Kiala in France with 4,000 PUDO points in the country
Consumers in the UK can shop from any online retailer and collect the order from a Parcel Park point
Hermes Packetshop in Germany is predominantly used for returns rather than order collections
•Some retailers allow shoppers to pick up online orders at their local post office branches
The Post Office operates its Local Collect collection service in partnership with the Royal Mail
H&M shoppers in Denmark can have online orders sent to their local post office
Kiabi allows orders made from its Spanish website to be picked up from a Correos postal office
Online orders made on Stockmann's website can be picked up from the Finnish post office
•Outdoor parcel collection boxes are springing up across Europe
DHL Packstations consist of 2,500 parcel collection boxes
Royal Mail is trialing its iBox parcel locker scheme in the UK
ByBox in the UK has extended its drop box delivery services to cater for online retailers
La Poste operates a limited network of parcel locker facilities in France under the Cityssimo brand
Amazon is to launch its own locker facility in London
Postal companies across Europe have launched small networks of parcel lockers
•Retailers are adding a collect instore option to boost cross-channel sales
Format of collection points: retailers are adding collection points to other fascias in their group and considering standalone sites
Location of collection points: department stores are more likely to allocate shop floor space to dedicated collection points
Product range: retailers are increasing the number of products available through the click and collect service
Charges: the cost effectiveness of click and collect often allows retailers to offer the service free of charge
Speed of delivery: deliveries of online orders to the store take an average of four days
Hours of operations: online shoppers are as yet unable to collect orders from the store outside of trading hours
Holding time: items ordered through click and collect are usually held instore for about two weeks
Complementary products and services: financial services are often marketed and offered at the retailer's collection points
Service promotion: department stores and grocers tend to invest the most on marketing their click and collect services
APPENDIX
•Data tables
•Methodology
•Further reading
•Ask the analyst
•Verdict consulting
•Disclaimer
TABLES
•Table: Consumers' reasons for not shopping online in Europe by country, 2011
•Table: Benefits and limitations of the click and collect at a PUDO point model
•Table: Benefits and limitations of the click and collect at a postal office model
•Table: Benefits and limitations of the click and collect at a parcel locker facility model
•Table: Benefits and limitations of the click and collect instore model
•Table: Kiala trading record, 2008–10
•Table: Population densities across the EU27 region, 2010
•Table: Number of working hours per week in the EU27 region, 2010
•Table: Proportion of households in Europe with all adults working full time, 2009
FIGURES
•Figure: Consumers' reasons for not shopping online, Europe, 2011
•Figure: Proportion of consumers not shopping online for payment-related reasons, 2011
•Figure: Proportion of consumers not shopping online due to a preference for browsing instore, 2011
•Figure: Proportion of consumers not shopping online due to concerns over the security of postal deliveries 2011
•Figure: Proportion of consumers not shopping online due to not being always available to receive the delivery, 2011
•Figure: Population densities across the EU27 region, 2010
•Figure: Population per car in Europe, 2010
•Figure: Number of working hours per week in the EU27 region, 2010
•Figure: Proportion of households in Europe with all adults working full time, 2009
•Figure: A Kiala collection point in a partner store
•Figure: Kiabi’s checkout page displaying an option to deliver an order to a Kiala point in Belgium
•Figure: Delivery options on Kiabi's site allowing customers to choose their nearest Kiala pick up point
•Figure: Very.co.uk’s checkout page displaying an option to deliver order to a Collect+ store
•Figure: Page on Very.co.uk's site displaying customers’ nearest Collect+ stores
•Figure: Page on Very.co.uk displaying the details of the chosen Collect+ location
•Figure: Page on Very.co.uk's site displaying customers’ delivery choices
•Figure: A Yodel van used for transporting parcels to and from Collect+ points
•Figure: A PayPoint terminal being used to scan a parcel in a Collect+ partner store
•Figure: A package displaying the Collect+ branding and the PayPoint terminal used to scan the barcode
•Figure: Collect+ and PayPoint signage outside a Budgens store in London, 2011
•Figure: Label required for parcel sent using Royal Mail’s Local Collect service
•Figure: DHL Packstation in Germany
•Figure: C&A’s checkout page displaying an option to deliver to a DHL Packstation
•Figure: C&A’s checkout page confirming delivery to a DHL Packstation
•Figure: DHL Packstation's number of sites and registered users, 2005–11
•Figure: Royal Mail locker service in the UK
•Figure: A 24-hour Cityssimo parcel locker room facility in France
•Figure: Amazon’s order collection locker facility in the One New Change shopping center, London
•Figure: European postal companies' 24-hour parcel locker facilities
•Figure: The collection point at the Waitrose Food, Fashion & Home store in London, UK
•Figure: House of Fraser's Buy & Collect area in its Oxford Street store, London, UK
•Figure: Debenhams' customer services area on the top floor of its Central London store, UK
•Figure: Customer service area on the top floor of Stockmann's Helsinki store
•Figure: Outside entrance of John Lewis's collection area at its Oxford Street store in London, UK
•Figure: Instore entrance of John Lewis's collection area at its Oxford Street store in London, UK
•Figure: The delivery times for delivery to the store compared with home delivery
•Figure: Marks & Spencer's checkout page allowing shoppers to select a collection date
•Figure: Number of days a product is held instore compared to the returns period
•Figure: Marks & Spencer's collection point next to the bath and beauty department
•Figure: Tesco's collection point featuring a set of Tesco Direct catalogues
•Figure: Original outdoor signage promoting John Lewis's click and collect service
•Figure: Instore signage for John Lewis customer collection point and order station at the entrance
•Figure: The John Lewis home page advertising the click and collect service
•Figure: Outdoor window signage promoting House of Fraser's collection service
•Figure: House of Fraser's and De Bijenkorf's online sites promoting their collect instore services
•Figure: Click and Collect advertising at Sainsbury's convenience store in Clerkenwell, London
•Figure: Next promotional stands advertising its website and its free delivery to store
•About the report series
•Introduction
STRATEGIC ACTION POINTS
•Make the click and collect option free of charge where possible
•Offer a wide choice of payment to encourage greater take up
•Try to use the click and collect points as a further opportunity to market your brand
•Ensure high levels of customer service at the pick up point
•Make the click and collect service as straightforward as possible
•Consider offering a reserve and collect service to gauge appetite for click and collect
•Extend your service to other fascias belonging to your group
•Consider partnering with another retailer to act as a pick up point for your products
•Shout about the click and collect service
•Consider alternative locations for your collection points
•Provide seating in the collection area and strive to create a welcoming ambience
•Train staff members to promote the online store
•Extend the instore collection service to as wide a range of products as possible
•Offer as many options as possible to maximize exposure and customer base
•Add complementary products and services to the collection point
STRATEGIC MOTIVATIONS
•Changing consumer demographics are facilitating uptake in click and collect services
Adding a click and collect option can greatly boost the uptake of online shopping
Countries with low population densities have potential for third-party pick up points
Increasing car ownership is making the click and collect option more convenient for online shoppers
As consumers are spending more time in the work place, home delivery is no longer the most viable option
The number of households with all adults working full time is on the rise
Click and collect instore often reduces delivery costs for the customer
•Click and collect can help retailers boost online sales and stay ahead of the competition
Click and collect allows retailers to remain competitive as more rivals offer increasingly flexible options
Click and collect helps retailers to extend their brand reach
The click and collect option cuts retailers' costs by reducing delivery failure
Offering click and collect instore helps retailers boost instore sales
Longer opening hours at third-party sites offer shoppers extended access to a brand
Click and collect services create more touch points and greater brand presence
The service helps retailers to overcomes hurdles faced by fuel shortages and high road traffic
Click and collect can help retailers to boost their green credentials
Partner retailers can gain extra revenues and footfall by providing PUDO points for complementary retailers
STRATEGIC CONSIDERATIONS
•A range of click and collect models are available to retailers pursuing the strategy
Specialized PUDO point providers greatly extend an online retailer's physical reach
Click and collect services in branches of the national postal service are trusted but opening is limited
Specialized storage facilities are the most convenient in terms of opening hours
The click and collect instore option encourages customers to shop across both channels
•Retailers partnering with a PUDO point provider need to consider whether the partner stores complement the retailer's brand image
•Retailers using post offices as pick up points need to consider the opening hours of the branches
•Retailers making use of parcel lockers should first determine the size and weight restrictions of the facilities
•Retailers using their own store network as collection points should bear in mind the extra staffing and training costs involved
STRATEGY IN FOCUS
•PUDO point providers are prevalent in Western Europe
Kiala has 7,000 PUDO points, which serve over 300 companies in five European countries
Collect+ was created by Yodel and PayPoint to serve as click and collect points in the UK
Mondial Relay operates the Point Relais Drive points in France for oversized parcels
Relais Colis is a close competitor to Kiala in France with 4,000 PUDO points in the country
Consumers in the UK can shop from any online retailer and collect the order from a Parcel Park point
Hermes Packetshop in Germany is predominantly used for returns rather than order collections
•Some retailers allow shoppers to pick up online orders at their local post office branches
The Post Office operates its Local Collect collection service in partnership with the Royal Mail
H&M shoppers in Denmark can have online orders sent to their local post office
Kiabi allows orders made from its Spanish website to be picked up from a Correos postal office
Online orders made on Stockmann's website can be picked up from the Finnish post office
•Outdoor parcel collection boxes are springing up across Europe
DHL Packstations consist of 2,500 parcel collection boxes
Royal Mail is trialing its iBox parcel locker scheme in the UK
ByBox in the UK has extended its drop box delivery services to cater for online retailers
La Poste operates a limited network of parcel locker facilities in France under the Cityssimo brand
Amazon is to launch its own locker facility in London
Postal companies across Europe have launched small networks of parcel lockers
•Retailers are adding a collect instore option to boost cross-channel sales
Format of collection points: retailers are adding collection points to other fascias in their group and considering standalone sites
Location of collection points: department stores are more likely to allocate shop floor space to dedicated collection points
Product range: retailers are increasing the number of products available through the click and collect service
Charges: the cost effectiveness of click and collect often allows retailers to offer the service free of charge
Speed of delivery: deliveries of online orders to the store take an average of four days
Hours of operations: online shoppers are as yet unable to collect orders from the store outside of trading hours
Holding time: items ordered through click and collect are usually held instore for about two weeks
Complementary products and services: financial services are often marketed and offered at the retailer's collection points
Service promotion: department stores and grocers tend to invest the most on marketing their click and collect services
APPENDIX
•Data tables
•Methodology
•Further reading
•Ask the analyst
•Verdict consulting
•Disclaimer
TABLES
•Table: Consumers' reasons for not shopping online in Europe by country, 2011
•Table: Benefits and limitations of the click and collect at a PUDO point model
•Table: Benefits and limitations of the click and collect at a postal office model
•Table: Benefits and limitations of the click and collect at a parcel locker facility model
•Table: Benefits and limitations of the click and collect instore model
•Table: Kiala trading record, 2008–10
•Table: Population densities across the EU27 region, 2010
•Table: Number of working hours per week in the EU27 region, 2010
•Table: Proportion of households in Europe with all adults working full time, 2009
FIGURES
•Figure: Consumers' reasons for not shopping online, Europe, 2011
•Figure: Proportion of consumers not shopping online for payment-related reasons, 2011
•Figure: Proportion of consumers not shopping online due to a preference for browsing instore, 2011
•Figure: Proportion of consumers not shopping online due to concerns over the security of postal deliveries 2011
•Figure: Proportion of consumers not shopping online due to not being always available to receive the delivery, 2011
•Figure: Population densities across the EU27 region, 2010
•Figure: Population per car in Europe, 2010
•Figure: Number of working hours per week in the EU27 region, 2010
•Figure: Proportion of households in Europe with all adults working full time, 2009
•Figure: A Kiala collection point in a partner store
•Figure: Kiabi’s checkout page displaying an option to deliver an order to a Kiala point in Belgium
•Figure: Delivery options on Kiabi's site allowing customers to choose their nearest Kiala pick up point
•Figure: Very.co.uk’s checkout page displaying an option to deliver order to a Collect+ store
•Figure: Page on Very.co.uk's site displaying customers’ nearest Collect+ stores
•Figure: Page on Very.co.uk displaying the details of the chosen Collect+ location
•Figure: Page on Very.co.uk's site displaying customers’ delivery choices
•Figure: A Yodel van used for transporting parcels to and from Collect+ points
•Figure: A PayPoint terminal being used to scan a parcel in a Collect+ partner store
•Figure: A package displaying the Collect+ branding and the PayPoint terminal used to scan the barcode
•Figure: Collect+ and PayPoint signage outside a Budgens store in London, 2011
•Figure: Label required for parcel sent using Royal Mail’s Local Collect service
•Figure: DHL Packstation in Germany
•Figure: C&A’s checkout page displaying an option to deliver to a DHL Packstation
•Figure: C&A’s checkout page confirming delivery to a DHL Packstation
•Figure: DHL Packstation's number of sites and registered users, 2005–11
•Figure: Royal Mail locker service in the UK
•Figure: A 24-hour Cityssimo parcel locker room facility in France
•Figure: Amazon’s order collection locker facility in the One New Change shopping center, London
•Figure: European postal companies' 24-hour parcel locker facilities
•Figure: The collection point at the Waitrose Food, Fashion & Home store in London, UK
•Figure: House of Fraser's Buy & Collect area in its Oxford Street store, London, UK
•Figure: Debenhams' customer services area on the top floor of its Central London store, UK
•Figure: Customer service area on the top floor of Stockmann's Helsinki store
•Figure: Outside entrance of John Lewis's collection area at its Oxford Street store in London, UK
•Figure: Instore entrance of John Lewis's collection area at its Oxford Street store in London, UK
•Figure: The delivery times for delivery to the store compared with home delivery
•Figure: Marks & Spencer's checkout page allowing shoppers to select a collection date
•Figure: Number of days a product is held instore compared to the returns period
•Figure: Marks & Spencer's collection point next to the bath and beauty department
•Figure: Tesco's collection point featuring a set of Tesco Direct catalogues
•Figure: Original outdoor signage promoting John Lewis's click and collect service
•Figure: Instore signage for John Lewis customer collection point and order station at the entrance
•Figure: The John Lewis home page advertising the click and collect service
•Figure: Outdoor window signage promoting House of Fraser's collection service
•Figure: House of Fraser's and De Bijenkorf's online sites promoting their collect instore services
•Figure: Click and Collect advertising at Sainsbury's convenience store in Clerkenwell, London
•Figure: Next promotional stands advertising its website and its free delivery to store
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