“Retailers must invest in delivery saver schemes to capture shopper spend”
A new report from GlobalData has argued that retailers must invest in delivery saver schemes to capture shopper spend. The new report, ‘Delivery Saver Schemes in the UK – 2017’, found that department stores and traditional clothing & footwear retailers are losing market share to online pureplay retailers – but adopting delivery saver schemes could help them recapture some of this business.
According to the GlobalData report, 22.2% of online shoppers are subscribed to a non-food delivery saver scheme and 29.0% are subscribed to a food & grocery delivery saver scheme, with Amazon Prime and the Tesco delivery saver being the most popular schemes offered by non-food and food & grocery retailers.
Charlotte Pearce, Retail Analyst at GlobalData commented: “As department stores and leading clothing & 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.’’
Pearce continued: “Retailers considering a scheme must trial this with a select shopper base to gage customer reaction, uptake and order frequency before rolling this out on a wider scale. This way, retailers can weigh up whether the investment would be worthwhile and understand its long-term profitability.”
One in five UK online shoppers is signed up to a delivery scheme, and this is set to increase as retailers like Next and New Look continue to build their delivery schemes subscriber base through continued marketing support.
Pearce added: “At a time where a number of retailers in the UK are struggling to maintain healthy store sales but online sales continue to increase, delivery saver schemes allow retailers to capitalise on online growth and increase shopper loyalty. The benefits of these schemes are clear – they encourage subscribers to shop more frequently with the retailer, resulting in higher annual spend, thus leading to growth in online sales.”
