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Growing Trend of Click & Collect

2010 April 28
by Barry

CANDC Lucan Sign Growing Trend of Click & CollectUndoubtedly one of the major obstacles when buying online is the cost & speed of delivery. In Ireland this has always been an issue with small items often costing more in delivery than the item itself, and large items? forget about it. Click & Collect is the growing trend of businesses allowing customers to purchase online and collect offline. Superquinn as ever are on the ball, already up and running with two stores utilising click & collect.

Elsewhere, click & collect is exploding in countries like France, which is no surprise as they have been early adapters with steady investment over the past decade. Websites like ChronoDriveAuchanDriveE.Leclerc Drive and supermarket giant Carrefour are all making significant investment in this area. Together ChronoDrive and AuchanDrive have almost 40 drive-in locations with a commitment to double that number this year alone.

The reason that this has become popular in France and in general is one of convenience. Purchasing online allows you to take advantage of tools like shopping lists, comparisons and the ability to quickly purchase the items you need. Getting in your car and driving to a pick up point allows shoppers to organise and schedule collection when it suits them. This is an important distinction to the home delivery service where you are required to be at home to receive the goods. It makes shopping easier and more convenient, French stores have noticed this and have suitably adjusted to their customers needs.

shop and drive 600x245 Growing Trend of Click & Collect
While the idea might be relatively new to Europe, Walmart in the US have had success with their implementation of Site-to-Store. Others are sure to follow Walmart’s lead, and a recent report in North America shows that over 1/3 of stores are planning to implement a similar service before the end of this year.

Adoption of click & collect has been a little slow in Ireland with the uptake mainly among electronic stores like Komplett, Elara, D.I.D Electrical and I suppose Argos reserve and collect follows the principle anyway.

Buying bulky items online and then collecting them is a natural progression where delivery costs can be significant, for example delivery of an item like a TV can cost anywhere from €20-50 depending on the store. The real shift will be from once off purchases to everyday ones like groceries, just like Superquinn above. It won’t be long before Tesco offer a similar service here as they are already trialling in the UK and also have the advantage of their Tesco Direct online store.

Other supermarkets here very slowly made the move to listing their products and offers online, again only really  Tesco are making a significant effort allowing you to buy online with home delivery. A quick survey from friends and twitterfolk shows a mixed bag in terms of Tesco service (concerns over fresh items and replacement products). While other chains offer an online ordering service, it doesn’t appear like any have made the important move to promote their offering.

The days of not having a fully up to date website which is integrated with your bricks and mortar store are already numbered, over the next few years it may well be the one factor that kills your business.

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  • http://www.linkedin.com/in/brendanmccoy Brendan McCoy

    Barry,

    This is an interesting solution to the barriers to conventional online shopping in Ireland.
    As I see it there are two aspects to this and both are related to the small size of the market here.

    On the retailer (or eTailer) side there is the cost and complexity of adding a delivery module to an existing order processing system. While most Shopping Carts offer this they are usually US only meaning that fulfillment must be managed manually or IT development work done. If using a courier rather than An Post then this may mean adding size and weight fields to all existing stock records as well as linking into the carriers application.

    On the delivery side only An Post can offer a genuinely nationwide service at a cost low enough for the retailer to advertise 'Free Delivery'. The postal service is really only suitable for smaller, lower value, less time sensitive packages and outside of these the small market size usually contstrains couriers from offering serivces such evening or time designated deliveries. There are also exceptional costs involved in making deliveries around Ireland and while the introduction of postcodes will make rural homes easier to find it will not remove the costs in reaching them or in delivering to apartment blocks or congested streets.

    The Click & Collect model is less glamorous than the purely online one but it would seem to better suit suit Irish retailers with a wide physical presence, particularly in locations close to their customer base or with good transport links.

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  • Stenty

    shutl.co.uk takes click and collect 1 step further… enabling consumers to get their online purchases immediately (90min) or within a 1 hour time window of their choice. using stock in local stores and same-day courier companies who are cheap for short distance deliveries, the company claims to be abel to offer the service for a comparable price to standard delivery. shoppers around the world are watching!

  • http://www.linkedin.com/in/brendanmccoy Brendan McCoy

    Interesting concept but its currently London only and no significant retailers are offering the service 6 months after its launch.

  • http://twitter.com/shutl Shutl

    to clarify… we came out of stealth mode in December however we did not go live with our first retailer until last month. We will be launching with one of UK's largest retailers (500+ stores) within the month… watch this space!

  • Gareth

    Barry,

    Thank you for such an interesting and useful post.
    I am currently researching click to collect as part of my dissertation. I was wondering if you could possibly point me in the direction of information regarding to the uptake of click to collect in tier 2 and tier 3 retailers in Europe and the US. 

    Many thanks.

    Gareth