Lidl launches grocery click and collect
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Germany-based grocer Lidl is testing a click and collect program at smaller-format stores, called Lidl Express, that allows shoppers to purchase groceries online and pick them up at checkpoints, which also stock a limited inventory of fresh produce for on-site purchasing, reports Ecommerce News.
Lidl began selling groceries online in Germany two months ago, but adding a click and collect option could help significantly boost this portion of its business.
One of the biggest pain points for consumers buying groceries online is that they prefer to see and pick out items like produce themselves. Click and collect is one of the most effective ways to combat this as it provides in-person contact and allows shoppers to address any potential issues before leaving the store. Moreover, by stocking additional inventory, Lidl has the chance to potentially cross-sell any items that a shopper hadn't included in their original order.
As retailers around the world look to bring grocery e-commerce to the mainstream, click and collect will likely emerge as a winning strategy due to its blending of the online and in-store shopping experiences.
Click and collect — a fulfillment option that lets shoppers place an online order and pick it up at a store — is thriving in the UK.
Over half of UK shoppers report having used this method in the past year, according to a survey from JDA & Centiro conducted in April 2016.
However, the US is far behind on the click and collect trend, with just 27% of consumers using the service. This is largely due to slower growth in mobile commerce, and specifically, the hesitancy shoppers feel about using mobile retail apps.
Retailers in the US can look to the growth drivers in the UK to help drive up their own click and collect sales. Most notably, mobile commerce and adoption by grocery chains are driving shoppers in the UK to use click and collect.
Nancee Halpin, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on click and collect that breaks down the growth factors behind click and collect in the UK. It also discusses the retailers successfully implementing the fulfillment method, examines the of impact consumer behavior, and outlines some key steps that US retailers can take to replicate the UK's performance.
Here are some key takeaways from the report:
- The UK's click and collect market is expected to grow 78% by 2020, to £8.2 billion ($10.6 billion). Meanwhile, it is expected to reach £5.3 billion ($6.8 billion) by the end of 2016.
- Click and collect is benefiting from consumer adoption of mobile commerce in the UK. Mobile is a fundamental driver because it affords consumers more flexibility in the purchasing process. As a result, many UK consumers are purchasing goods on their mobile phones, and then picking them up on the way home from work, the gym, appointments, etc.
- The service is particularly popular among grocery chains, with many of the UK's largest supermarkets offering click and collect. Since trips to the grocery store are made frequently and regularly, click and collect is a perfect fit for shoppers who want to avoid recurring issues like long checkout lines and crowded stores.
- To grow click and collect in the US, retailers need to invest in their mobile presence and dedicate in-store resources to click and collect shoppers. Merchants should do more than just recreate the desktop browser experience on a mobile app — this includes employing tools like mobile loyalty programs, digital coupons, and social media integration.
In full, the report:
- Sizes the market for click and collect in both the UK and the US.
- Identifies the key growth factors that are making click and collect successful in the UK.
- Discusses key players in the UK that are seeing success with click and collect.
- Presents some of the challenges the US faces in spurring adoption.
- Outlines future opportunities for US retailers to grow sales via click and collect.
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