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
List of 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
List of 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