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BizReport : Ecommerce archives : July 20, 2015

Click and collect a hit with U.K. online shoppers

Two retail chains in the U.K., Sports Direct and Halfords, are seeing significant interest and return on investment as a result of introducing a click and collect service.

by Helen Leggatt

Click and collect services, where a consumer may buy online and opt to collect their purchase from a store, appears popular among the U.K. population. Both sporting goods discount store Sports Direct and car, cycling and camping retailer Halfords have reported hikes in online sales that they attribute to their introduction of click and collect.

Halfords, who introduced click and collect over three years ago, has reported an 8.2% growth in online sales, adding that 91% of items ordered online are now collected from in-store. That's up from 86% in the final quarter of 2014.

Sports Direct has reported that its online sales are up 14.4% YoY and attributes this growth to the launch of its click and collect service earlier this year. The service already accounts for more than 20% of all its online orders in the U.K.

Interestingly, both of the retailers above charge for click and collect, and yet this does not appear to have been a barrier to use by consumers. While Sports Direct charges £4.99 (US$7.78) for its click and collect service, customers are given a £5 (US$7.79) voucher to spend in-store. Halfords also charges £4.99 (US$7.78) for the service but does not compensate customers for this.

"Online remains a significant growth opportunity for the Group. The launch of UK click and collect in the year in both Sports Direct and USC has driven a significant increase in online sales, and we now plan to continue to roll this out across the other Group websites," said Sports Direct chief executive Dave Forsey. "Further opportunities to grow this business include the launch of a loyalty scheme for customers including annual fixed price delivery options and the development of dedicated websites and improved payment options across Europe. We also plan to introduce a fast pay checkout system which will streamline the checkout process."

The success of click and collect for John Lewis has been such that they have become the first department store to charge for the service. At the end of July, a charge of £2 will apply to all purchases collected that cost under £30 (US$46.78). The reason for the introduction of a charge is the sheer volume of click and collect orders now handled by the store - six million each year compared to just 350,000 in 2008 when the service was first offered.

(EDITED: corrections as per comments)

Image via Shutterstock

Tags: click and collect, delivery trends, ecommerce, U.K.

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  • jim

    Thought I would point out some errors in this piece.
    1) Halfords dont charge for click and collect, its free.
    2) Its Sports Direct that charges £5 for the service and gives it back as a money off voucher - NOT Shop Direct which is a totally different company!!



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