Same-day delivery and fast Click & Collect services have been a point of discussion in the retail world for some time, yet only a few retailers have managed to truly deliver on these promises. The primary question is: why are so many retailers struggling to offer these services?
Amazon raised expectations by introducing same-day deliveries in select areas, and with the potential future use of drone technology, they continue to set the standard. Similarly, Argos has made significant strides by offering same-day delivery on orders placed up until 6 pm and FastTrack instant collection, thanks to its large network of over 800 stores and distribution centres. Screwfix, known for their rapid “collect in store in as little as one minute” promise, has also made an impact in this space.
However, for most physical retailers, home deliveries and rapid collection services remain a challenge. Despite the fact that the majority of retail sales still occur in-store, a recent survey by Kurt Salmon found that standard home delivery times in the UK averaged 3.8 days, while Click & Collect took an average of 2.2 days.
The core issue lies in the lack of real-time stock visibility and effective order management systems that can handle online orders from store locations. Retailers who have implemented these systems are able to reduce waiting times significantly. For instance, The Entertainer, a UK-based toy shop, introduced a leading Click & Collect service, allowing customers to pick up their orders within just 30 minutes.
Many retailers still rely on warehouse stock to fulfil online orders due to the absence of systems that allow them to pull stock from physical stores. This issue is compounded by stock accuracy challenges, especially in sectors like fashion, where sizes and styles are often scattered across the country, making fast deliveries and reliable collections difficult.
However, there is a solution. Stores themselves can function as mini warehouses and distribution hubs. By combining the power of both online and physical retailing, stores can create an “endless shopping aisle,” providing customers with faster service and greater convenience. This model could offer a competitive edge against online-only retailers by providing goods for collection within the hour and shipping from stores quickly, using local couriers in urban areas.
Advanced order management systems are essential for this transformation, offering real-time inventory visibility, improved stock accuracy, and intelligent order routing. These systems streamline in-store order processes, which leads to faster delivery and collection times, and higher customer satisfaction.
Looking ahead, it’s likely that more retailers will adopt near-immediate collection services and faster delivery times, including hourly deliveries in some cities. With the success of apps like Uber and Deliveroo, the potential for rapid retail fulfilment is within reach. Retailers that can integrate store-based and online systems will be better positioned to meet consumer demand for speed and convenience.
The future of rapid delivery and Click & Collect depends on technological advancements and the ability of retailers to optimise their supply chains and systems. The potential is there, and those who adapt will see a significant improvement in customer satisfaction and competitive advantage.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.
