Conflicting stories emerge about the success of 'Click and Collect'

Some news stories have emerged in recent times about the phenomenon that is 'Click & Collect.'

"A click-and-collect company which announced a major deal with Network Rail is to open fewer parcel collection points at stations than planned.

Doddle now wants to recruit people to use their own homes as pick-up points for internet shopping."

http://www.bbc.co.uk/news/business-33597033

"Click-and-collect is a fairly new battleground for UK retailers, and promises rich rewards for daring firms.

It has been hugely popular over the past five years, as customers embrace the convenience of being able to order goods online and pick them up in store or elsewhere."

http://www.bbc.co.uk/news/business-33371265

Now I don't think that both stories sit happily hand-in-hand and it's another case of the truth being more shades of grey than the black and white reporters make it out to be.

I've blogged loads of times about the advantages of 'Click & Collect' and I feel that these apply whether you are a High Steeet chain or a single independent retailer. It allows you to sell products online that maybe you can't stock in store. It brings people through your door that may not have otherwise visited, customers who collect spend more money whilst in store. There are even companies that allow you to collect things that you've not even bought trough them - Argos have set up collection points for eBay purchases and mdny independent stores have become Collect+ locations, with sellers including Amazon.

So why are John Lewis different?

Obviously they've looked at their business model and they don't think that it works at present. I've heard the head of their organisation talk before about customers needing to change their pricing expectation when ordering online. He believes that customers need to stop expecting a product at the same price and free delivery. I think he's deluded. The fact that they don't have to pay High Street or shopping centre rent, the savings in staffing and the reduced security concerns of having customers walk through their doors should mean a cheaper online product in my eyes. It's why Amazon are so successful - their long-term model to now has been online-only sales.

For independent retailers I'd say that having an online store will bring you extra business, not extra costs. Enabling your local customers to collect directly from you should increase your market, your footfall and your profits. Whether you do this through your existing website, a custom-built sales-only website, eBay or Facebook, one things for sure - you'll bring more people through your door, whether physically or digitally.

And that can only be good.

Technology can help, but not for technology's sake

I'm just reading an article in the i newspaper about John Lewis plan for the use of technology in their stores. It involves the use of GPS to locate your position in the store and push notifications in their app to inform you of any offers in that part of the store. You will complete your shop on the app, and it will be picked and packed at the checkout waiting for you to pay. Do they know something that we don't? Do John Lewis and Waitrose customers shop in a different way to the rest of us?

I can't see that walking around the store looking at your phone is in any way a different or better experience than pushing round a trolley and selecting the items physically rather than digitally.

It's a gimmick.

I know a lot if peoe will probably use it when it's first launched and it will gain some publicity, but in the long term it will probably be consigned to the dustbin.

But technology can help retailers, but in the places that make a difference. Apps and mobile versions of retailers websites are a great way to engage your customers in your brand, your stores and your offers (without the reported cost of the John Lewis system above of £100,000.) Poundland sends incentives to customers to Pinterest, Tweet and Facebook their experiences and their purchase and this makes headway into social media networking markets. Friends may not immediately run out to Poundland upon reading about it, but will bear them in mind on their next trip to the High Street. It's this kind of social media networking that is making unseen inroads  into customers spending habits. The retailers with the best apps, best online offering and best social media links will probably win out over those that have great stores, but no more than that.

Click and Collect plays a massive part in this, and retailers of all shapes and sizes have become aware that they can still make the sale, even if the product us not in stock. Pay today and collect tomorrow, whether the buyer is in store, sat at home on a computer or browsing on their mobile phone is a great way to ensure that the business stays within your company - and that people don't shop around and look elsewhere. All retailers need is for the collection process to be smooth and streamlined to ensure that customers feel confident to follow the process again.

I witnessed a customer this morning in an unnamed High Street national chain go to the till to collect her parcel. The cashier asked her to wait while she found the delivery, and came back 2 minutes later to state that it wasn't there. Irate customer asked cashier to have another look and said that they wouldn't be doing this again. Cashier found item, but by this time there was a queue at the till, so the customer had to wait her turn to be served. All of this could and should have been much slicker and customer-friendly. A dedicated collection point, cashiers that are really clued up about their systems and an attitude of ownership of the situation make a great in-store collection experience.

Hope this helps.

How to increase town centre High Street footfall

Figures released today have shown that retail footfall dropped by 0.1% in April.

However footfall in out of town locations rose by 4% - the 4th month in a row that there had been an increase.

This is more evidence that the government 's town centre first policy is not working.

So what next.  I've looked at certain points in prior blogs relating to how this can be tackled.  Changes to the business rates in vacant shops and incentives from government to help local councils provide free parking are two ways that I think will have a massive impact.

The march of Click & Collect should also see some improvements in town centre footfall and sales figures.

What about YOU as a retailer - what are you doing to keep your High Street vibrant?

Do you have a town centre retail committee?

If so, are you on it?

Are you organising events and incentives to promote your town?

Do you cross-refer to other local retailers?

I think a prime example of the last point is  linked to weddings. A florist should always have a link to a bridal gown shop, a limo hire company, a local wedding cake company - and vice versa.

Local communities of like-minded retailers are stronger together.  Hosting town centre events for Easter, Christmas, Mothers Day, etc will make the whole town sing, encourage people to visit many stores and increase both footfall and sales.

Do this in addition to the moves I have previously outlined and there's a profit to be made!

Morrisons slashes prices, but fails to find its niche

Morrisons had an awful year, last year and they've decided to fight the discounter with discounts.  Unless they can undercut retailers like Aldi and Lidl that spend far less on their shop fits and staffing their stores, then they may struggle with this strategy.

It's the 2nd from last sentence that highlights a real need for expenditure-

"A lack of online and convenience store presence has also left the business exposed"

There's plenty of vacant High Street property out there for Morrisons to kill both birds with one stone.  Open convenience stores with online terminals for Click & Collect customers.  It will get them back on a par with the big boys, rather than trying to fend off the discounters snapping at their heels.

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Argos puts Click & Collect terminals in Homebase

Regular readers will know of my fondness for retailers offering a Click & Collect service.  It puts the best bits of online - wide choice, browse from home and great prices - and it takes away the pain of having to wait in for delivery or go to the local Post Office for collection.

You can choose your items, even from your smartphone, and then pick them up when you're next in the High Street.

I believe that this has fuelled Next's expansion and has propped up retailers such as Boots and Wilkinson.

The latest news from Argos is further proof that this is where the immediate future lies.

If you are a small retailer then you an offer a wider range from a small premises with your online or catalogue offering.  Then your customer can collect from you at a later date.  This increases your sales, keeps your floor space uncluttered, widens your range and pleases your customers.

What are you waiting for?

Asda gets in on the Click & Collect boom

I have long been an advocate of the Click & Collect services offered by High Street stores to access a full range of products in perhaps a smaller outlet.  Boots and Next in particular have seen these offerings as successful.  Now Asda have announced plans to increase their "Click and Collect points" by 1,000.

http://www.bbc.co.uk/news/business-26918527

This is a huge growth area and will continue to grow both your offering, and the High Street.

I have seen research by an unnamed High Street retailer that the average customer spends approximately a further £8 when they come into store to collect their goods.  That's extra income on both counts that can't be sniffed at!




Not everything can be bought on the High Street - Audible by Amazon