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Why Traditional Click-and-Collect Is Becoming Too Expensive for Retailers

Retailers today face a growing challenge: meeting rising customer expectations while controlling operational costs.

Click-and-collect has become an established part of the retail landscape, helping customers combine the convenience of online shopping with the flexibility of collecting purchases at a time that suits them. However, as ecommerce volumes continue to grow, many retailers are discovering that traditional collection models can create hidden costs, operational pressures and inefficient use of store resources.

At the same time, consumers are becoming more selective about how they receive and collect their purchases, creating new demands on retailers that were not as prominent just a few years ago. The question is no longer whether retailers should offer convenient fulfilment options. It’s whether their current approach is sustainable and scalable for the future.

The Hidden Costs of Traditional Click-and-Collect

For many retailers, click-and-collect began as a simple way to connect online and in-store shopping experiences. Today, however, managing a collection service often involves:

  • Receiving and processing customer orders
  • Sorting and storing parcels
  • Managing collection enquiries
  • Retrieving items for customers
  • Handling returns and missed collections

While each task may seem minor in isolation, together they can place significant demands on store teams, particularly during peak trading periods. As retailers continue to manage rising labour costs and pressure on store productivity, every process that requires staff intervention has a direct impact on operational efficiency.

Customer Expectations Have Changed

The challenge isn’t solely about cost. Consumer expectations around convenience have evolved significantly. Today’s shoppers increasingly expect delivery and collection options that fit seamlessly around their daily routines.

Research from Mintel found that consumers are increasingly choosing methods of receiving and returning purchases that “minimise friction and maximise control” over the post-purchase experience. Consumers want convenience, flexibility and greater choice in how they receive online orders.

Whether collecting a purchase on the way home, during a grocery shop or outside traditional retail hours, customers are placing more value on fulfilment options that work around their lives rather than requiring them to work around fixed collection times. For retailers, this means fulfilment is becoming an increasingly important part of the overall customer experience.

Convenience Is Reshaping Customer Preferences

The growing importance of convenience is reflected in consumer attitudes towards collection and delivery options.

Recent Quadient research found that almost half of consumers (49%) believe access to 24/7 parcel collection fits better into their lives than traditional doorstep delivery.

The same research found consumers prefer collection services to be located in places they already visit as part of everyday life:

  • 60% would like collection services available at supermarkets
  • 45% favour convenience stores
  • 40% prefer shopping centres and retail parks
  • 35% favour petrol stations

These findings suggest customers increasingly value fulfilment options that integrate into existing routines rather than requiring dedicated trips or waiting at home for deliveries. For retailers, understanding these changing expectations is becoming critical to maintaining customer satisfaction and loyalty.

Store Space Is More Valuable Than Ever

Retail space remains one of a retailer’s most valuable assets. However, as online order volumes increase, many retailers are dedicating larger areas of stockrooms and sales floors to storing customer orders awaiting collection.

During busy periods such as Black Friday and Christmas, these pressures can intensify, with collection orders consuming valuable operational space that could otherwise support merchandising, customer experiences or revenue-generating activities.

As retailers continue to look for ways to improve efficiency and maximise the value of every square metre, fulfilment operations are coming under increased scrutiny.

The Rise of Out-of-Home Delivery

Consumer demand for more flexible fulfilment options is expected to continue growing. Royal Mail reports that approximately 15% of UK parcels are currently delivered through out-of-home locations such as parcel shops and collection points. This figure is forecast to increase to around one-third of parcel volumes within the next five years.

This reflects a broader shift in consumer behaviour. Increasingly, shoppers want greater choice, flexibility and control over how they receive purchases, alongside the ability to fit collections into their everyday lives.

For retailers, this trend highlights the importance of regularly assessing whether existing fulfilment strategies continue to meet both customer expectations and business objectives.

Why Retailers Are Re-Evaluating Fulfilment Strategies

As customer expectations rise and operational costs continue to increase, retailers are asking important questions about the future of fulfilment:

  • How much resource is required to manage collections?
  • Are current processes efficient and scalable?
  • Is store space being used effectively?
  • How can convenience be improved without increasing operational burden?
  • What fulfilment options will customers expect in the future?

These questions are becoming increasingly important as fulfilment moves from a back-office function to a key driver of customer experience and loyalty.

Looking Ahead

The future of retail fulfilment will be defined by one balancing act: delivering greater convenience for customers while maintaining operational efficiency.

Retailers that understand how customer expectations are evolving will be better positioned to adapt, improve the customer experience and identify new opportunities to streamline operations.

 

 

Photo by Justin Dyer on Unsplash