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Europe boom for Click & Collect

LONDON: Deloitte forecasts the number of 'Click & Collect' or 'e-collect' locations in Europe will reach half a million in 2015, a 20 percent increase on last year.

The company says e-collect will become an increasing part of retail e-commerce due to the rising cost of failed first-time delivery that reached US$1 billion in the UK alone last year.

amazon click and collectWith Britain currently the most mature e-commerce market in Europe, Deloitte forecasts 13 percent of all retail revenue will be from e-commerce in 2015, of which about a third will be e-collect. Between 2012 and 2014, revenue from Click & Collect more than doubled to reach US$8.7 billion from 140 million orders.

As home-delivery volumes are expected to flatten out in 2015, Deloitte suggests e-commerce growth has to come from alternative logistics options. Click & Collect, where products can be delivered to another physical location, offers choice in selection and flexibility in collection: in-store (including a parking lot); a third-party location (such as a post office or a train station); or at a locker (often located on a commuter route).

This year Deloitte expects two-thirds of the 500,000 pick-up locations in Europe will be individual lockers; just over 25 percent will be third-party locations; and the remainder (about 37,000) will be stores.

The company expects the e-commerce share of retail to grow in most other European markets this year with e-collect becoming an increasingly common offer for non-grocery items from both bricks and mortar companies as well as on-line only. Deloitte says the latter will also use third-party outlets as well as retail stores to deliver goods. eBay currently uses the 650 stores of UK retailer Argos for Click & Collect services while Transport for London has installed parcel lockers on over 40 Underground stations in partnership with retailers that include Amazon and the Waitrose supermarket chain.

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