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Retailers 'must look to delivery subscriptions'

Retailers such as John Lewis and Debenhams are losing market share to etailers by not having delivery saver initiatives, new research has found.

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Marks & Spencer

Marks & Spencer, John Lewis and Debenhams are among the top five retailers facing most demand for delivery subscription services, data and analytics company Global Data has said. The ranking is rounded off by Argos and Boots.

The findings show 22.2% of online shoppers are subscribed to a non-food delivery saver scheme. Amazon Prime ranked as the most popular non-food scheme offered – it accounted for 82% of all subscriptions.

The study found that 34.1% of online shoppers aged 25-34 are subscribed to a non-food delivery saver scheme, compared with 9% of online shoppers aged 55-64.This is widely driven by fashion retailers such as Asos, where 70.6% of subscribers are within the 15-34 age group.

Charlotte Pearce, retail analyst at GlobalData, said: “As department stores – and leading clothing and footwear retailers in particular – have such a wide range of products available online, a delivery saver scheme can offer consumers value for money as, after a few orders, subscribers have effectively made their money back on the equivalent cost of deliveries.”

The report added: “Investing in this kind of scheme, for retailers like John Lewis, Marks & Spencer or Debenhams could bring some real benefits by encouraging subscribers to return to the retailer they are signed up to as their first port of call for purchases across different sectors, which will drive customer loyalty and spend per head with the retailer.”

It also predicted uptake will rise as retailers such as Next and New Look continue to build their respective delivery-scheme subscriber base through marketing. Total UK online sales are forecast to grow by £17.7bn in the five years to 2022.

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