Retail research firm CACI’s Retail Dimensions 2015 report reveals the stats you need to know behind click-and-collect, Black Friday and the top areas in which to invest, in order to capitalise on the rapidly changing retail market.
According to CACI, in-town retail remains a dominant force, with a market share of 56% of sales, with online taking 18% and out-of-town 26% (though CACI is unable to provide any comparison figures for earlier years). At Christmas these in-town retail parades boost their hold, taking 62% of festive spend, stealing share from both out-of-town centres and online. Offline spend is predicted to increase by 2.6% a year.
The research highlights key UK towns and cities that are deemed to have the best potential for future growth and could see the biggest uplift in spend (referred to as headroom on the maps), with locations in the South dominating.
The future growth of the online market (excluding groceries) is expected to be dominated by the clothing and footwear market, rising from £11.1bn now to £31.2bn in 2025.
Despite predictions that the online market (excluding groceries and convenience) will grow from £37bn this year to £96.6bn in 2025, CACI has found that nine out of 10 transaction types still touch a physical store. It believes click-and-collect represents the greatest opportunity for retailers as currently only 2% of shopping trips involve this.
The typical click-and-collect shopper is found to be worth £112 on that trip compared with £62 for non-click-and-collect shoppers.
CACI suggests retailers should use big retail events like Black Friday to boost their click-and-collect uptake, to avoid delivery bottlenecks and raise awareness of the provision.
Online spend increases by 41% during the peak Christmas period, while click-and-collect rates rise from 1.9% during off peak to 3.2% at Christmas.
Black Friday and Christmas
The Black Friday promotional shopping event, which this year will fall on November 27, pushes all the metrics up except for dwell times, but it generally attracts a less affluent and older shopper. These are the people most able to visit shops during the event.
Paul Langston, consulting partner at CACI, says if retailers shift the focus of Black Friday to click-and-collect, this could encourage a more affluent shopper to get involved: “Making it more of a click-and-collect-focused event would enable younger and more affluent, time-poor customers, to log on and shop in their lunch breaks and after work, collecting the products at a more convenient time.”