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Online delivery and click-and-collect sales to double over next decade

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Written by: Paloma Kubiak
14/03/2016
Getting our groceries delivered has become pretty common practice but we'll soon be ordering more of our non-food items online too, according to a study.

By 2025, the UK’s home delivery and click-and-collect market is set to double with 40% of all non-food sales made online, OC&C Strategy Consultants predicts.

It found that over the past decade, online purchases excluding food carried out through delivery and click-and-collect have doubled in value – and it expects this to double yet again over the next 10 years.

In 2005, only 9% of retail sales (£15bn) were fulfilled through home delivery and less than 1% by click-and-collect. The remaining 91% (£152bn) of sales were made in-store.

Last year, 19% (£35.9bn) of sales were made through delivery, 3% (£5.6bn) were made though click-and-collect, and 78% (£147.4bn) in store.

By 2025, home delivery is expected to be responsible for 30% (£69bn) of sales and click-and-collect for 10% (£23bn), while in-store purchases will decline to 60% (£138bn).

Anita Balchandani, partner at OC&C Strategy Consultants, said changing shopping habits will put pressure on retailers.

“Being able to offer predictable delivery slots, free next-day delivery and an accessibly priced same-day service is becoming the norm. The challenge retailers face is how to meet these changing expectations while making the economics work for their business.”

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