What's Behind the Rise of Click and Collect Shopping?

Posted by Kevin Keating on Aug 28, 2019 10:02:26 AM

Click and collect shopping is a hybrid that brings together some of the best features of e-commerce and bricks-and-mortar shopping for consumers. 

Reserved parking sign.

The way it works is, consumers place an order online, then collect it at a local retailer. They get the convenience of online shopping plus the instant gratification of having something today. While mostly limited to big-box retailers, click and collect has grown tremendously since 2016, especially during the busy holiday shopping season in November and December.

Why People Love Click and Collect Shopping

Consumers love click and collect shopping for several reasons. They can make up their order online and then pick it up conveniently, while they’re out doing other errands, on the way home, or at a time that makes sense for their schedule. 

Click and collect is a great way for consumers to avoid paying shipping charges, and it can allow them to have what they want when they want it, even when e-commerce is slowed by shipping delays (like when severe weather slows down shipping transport). And they can also take advantage of in-store deals through click and collect. 

Encouraging Statistics for Retailers

Retailers love click and collect too. Retailers with e-commerce options save money on packaging, labor, and fuel when consumers pick up their orders, raising their gross profits. More importantly perhaps, 37% of click and collect customers make additional purchases in the store when they come to pick up their order. For the “superconsumers” who use click and collect frequently, the percentage who make additional purchases is 51%!

And while click and collect hasn’t gained as much traction in grocery stores, online grocery spending is going up at an impressive rate. Between 2021 and 2023, online grocery spending is expected to reach $100 billion per year. Click and collect could bring additional dollars into the stores when people stop by to pick up their orders. 

Man shopping in a liquor store.

What Stores Should Do to Maximize ROI on Click and Collect

Naturally, stores will need enough employees to fill orders, and staffing to accommodate times of heavy click and collect ordering may take some trial and error to get right. Additionally, stores will need to dedicate space for order collection, either in a centralized “tower,” or with lockers that shoppers can open with their ID and order number. 

Retailers should also know that Millennials prefer click and collect ordering over home delivery. Consumers that retailers should target are primarily those in the 18 to 44 age group, with middle class incomes. According to Nielsen, the most common categories across different types of retailers are:

  • Bread and baked goods
  • Snacks
  • Cheese
  • Paper products
  • Milk 

Click and collect has quietly become a popular hybrid of e-commerce and bricks-and-mortar shopping and is showing retailers that e-commerce and in-store shopping can coexist – sometimes spectacularly! Consumers benefit from convenience and same-day acquisition, while retailers benefit from reduced shipping and handling costs and the tendency for click and collect shoppers to spend more once they’re inside the store. 

Though still relatively new, click and collect shopping shows signs of growing significantly, and it has already become a popular way for consumers to cope with the bustling holiday shopping season. Retailers that learn to do click and collect well position themselves to stand out from the competition and benefit from happier customers. Hangar12 is at the forefront of CPG marketing strategy and more. Subscribe to our blog to stay up-to-date with our latest insights.

Topics brand strategy