White Paper: Click & Collect
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Click and collect and drive-in shopping formats are expanding rapidly across Europe as retailers seek to capture spending from omni-channel shoppers. These models integrate online and mobile ordering with in-store pickup, allowing customers to shop flexibly. Studies show customers who use these services spend more and remain loyal. Major retailers in France, Germany, and the UK are adopting these strategies, opening hundreds of drive-in locations and expanding click and collect options. These approaches help retailers optimize existing store assets and inventory to meet changing customer demands.
White Paper: Click & Collect
- 1. Click and Collect poised to capture future supermarket spend Click and Collect concepts and drive-in formats are According to LSA, customers are typically young families and heavy spenders (basket sizes are bigger than in hyper- expanding rapidly across Europe as retailers seek to markets) and once they convert to this shopping model, capture spend from omni-channel shoppers. they tend to stick with it. By integrating mobile and online ordering with their physical stores, retailers can take their offer directly to Acceptance is growing. Kantar Worldpanel reports 2.3m the shopper, reports retail and distribution optimiza- French households have visited a drive-in during the last year and forecasts the number will rise to 4.5m by the end tion software supplier Aldata. of 2015, equivalent to 6.1% of the market. Click and collect and drive-in formats are a growing phenomenon across Europe, as retailers look to capture Three models are currently under the microscope in spend from an increasingly omni-channel shopper and France: store-based picking (the most popular), drive-in make best use of their existing store and supply chain warehouses and standalone drive-ins, which are built portfolios. With much physical store expansion now on away from a main supermarket. Casino opened its first hold, leading grocery retailers are eager to maximize their solo, standalone drive-in - Casino Express - on the outskirts investments and drive productivity of their existing assets. of Lyon in September 2011. Click and collect also enables retailers to combine a larger food and non-food offer in a local store. Orders can be placed online at a dedicated website but topped up via a kiosk at the drive-in. The website has been For the consumer, click and collect is a no-brainer with developed to show real time availability so customers are multiple benefits, not least convenience. Shoppers desig- only able to order products that are in stock. Casino aims nate the collection time and pick up point. They are no for a maximum turnaround of five minutes on the longer constrained by retailer’s home delivery schedules. shopper’s arrival and a minimum of two hours from the Mobile ordering is another bonus, allowing consumers time of their internet order. to shop, literally on the go; while real time availability of products on the retailer websites ensures shoppers will never be disappointed with substituted items. In France, leading retailers go one step further by providing an opportunity for shoppers to vet and check their fresh produce at the pick-up point, de-risking the purchase and eliminating a potential barrier to online sales. Leclerc operates 46 drive-in warehouse sites, which are attached to stores, and is reported to be targeting 400 Drive-in formats are expanding rapidly in sites by 2015 and 700-800 by 2017-18 comprising two France drive-ins per site - one attached to the store and one standalone. Research published by French retail magazine LSA put the number of drive-in formats in France at 700 at the end of In July 2011, Leclerc opened a drive-in in a south-eastern 2011,10 times the number three years ago. Leclerc, for suburb of Paris, which is attached to the main hypermar- instance, is reported to be opening one to two drive-in ket but totally autonomous. It manages 170 orders per formats per week. Drive-ins are popular with mums day with an average preparation time of 10 minutes. Like because they help them save time and are practical. They Casino Express, it offers real time stock management plus also appeal to older shoppers, who like help with heavy the opportunity for customers to reject any fresh produce shopping; while Parisians are reported to use these road- at pick up. side locations to collect a weekend shop on their way home. Al- www.aldata.com I info@aldata.com Copyright © Aldata Solution. All rights reserved. Aldata Solution and its registered trademarks are the property of Aldata Solution Oyj and/or its affiliates. Other names may be trademarks of their respective owners
- 2. Click and Collect poised to capture future supermarket spend Click & Collect grows in popularity across Making Assets work harder demands even Europe more from your supply chain The retailer benefits of click and collect and drive-in German and UK shoppers are also warming to drive-in formats are clear, says Donal Mac Daid, VP marketing formats, according to Aldata’s research. Aldata. It found 23% of German shoppers would choose drive- “Today’s reality is one of the omni-channel shopper who through over shopping in-store, rising to 32% of 18-34 dictates where, how and when they want to purchase. year olds. A fifth of UK shoppers, meanwhile, admitted a The blurring of store and web retailing click and preference for drive-in. mortar concepts enables retailers to use their existing In Germany, Rewe launched a trial assets to offer more and sell more, whilst delivering the Drive store in Cologne in November convenience today’s shopper is looking for. For retailers 2009 and has extended the pick-up it’s about understanding their cross-channel fulfillment service to a further 10 Drive locations options, how best to manage inventory and to be clear on based at existing stores. Shoppers can order from a range of 10,000 skus, including food and non-food items. Metro Group’s Real,- opened its second standalone drive- in supermarket - Real Drive - in Cologne in October 2011, following a trial in Hanover. For Real,- a key benefit of the model is avoiding the downside of shipping and delivery the role they want their stores to play in this mix.” charges associated with online shopping. Aldata can help retailers evolve and improve their omni- Later in December 2011. Hypermarket operator Globus channel capabilities for their shoppers, says Mac Daid. also followed suit and launched its first standalone drive-in “We know how to implement flexible supply chains and store in Ensdorf, Saarland, Germany, in December 2011, introduce concepts that can extend assortments without and is planning a second outlet in Rhineland-Palatinate increasing physical space and manage assortments across this year. Customers can select from an online range of channels. We also understand the importance of fulfilling 6,000 products. the order and enabling the shopper to decide exactly how In the UK, while pilots for Drive-In are underway leading they want to shop.” retailers Tesco and Sainsbury’s are both widening their Aldata’s expertise in omni-channel solutions spans order extensive Click & Collect operations to support sales of management, order picking in distribution centers, grocery items as well as their current general merchandise fulfillment centers or stores; and managing the replenish- offer – Tesco claim that 70% of online general merchan- ment cycle of products. This capability is vital in order to dise orders are through this channel, so there is much to provide excellent customer service, however consumers gain by adding grocery to this mix. Click & Collect adds to choose to shop. The solutions also allow retailers to adapt the retailer’s established home-delivery services. to their customers’ changing needs, expand their offers Elsewhere, the Co-operative, which operates 3,000 and efficiently optimize their existing store assets. convenience stores and claims to be the most frequently visited retailer in the UK, is planning an online grocery service and would be well placed to offer click and collect. Sources It could even include its high street bank and pharmacy outlets in the mix. Experian: “European Footfall Year To Date”, Nov 2011 Mercator in Slovenia is trialing click and collect services by Retail Times quoting Euromonitor International: clustering smaller convenience stores around larger hyper- “Retail Spotlight is there a future for the hypermarket store markets, exposing shoppers to the hyper-market assort- format”, Feb 2012 ment, which can be ordered online and delivered to the local branch. Commerces & Territoires quoting Kantar Worldpanel “Le Drive": 4.5 millions de clients fin 2015, soit 6.1% de part de marché, Apr 2012 LSA: "Special Drive", Oct 2011 Aldata Aldata is a global leader in retail and distribution optimization. Our software and service solutions help retailers, distributors and manufacturers dramatically improve their business performance. We optimize categories, space, supply, logistics, and consumer engagement to increase our customers’ revenue and margins, reduce time, cost and waste, and enhance on-shelf availability, service, and retention. Founded in 1988, Aldata has an unparalleled track record of delivering successful projects for the world’s largest retail and consumer brands, national wholesale and distribution organizations, and regional store. www.aldata.com I info@aldata.com Copyright © Aldata Solution. All rights reserved. Aldata Solution and its registered trademarks are the property of Aldata Solution Oyj and/or its affiates. Other names may be trademarks of their respective owners