Retailers Expand Pickup Options and Reap Benefits
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Multichannel shoppers spend more per year than online-only or store-only consumers
In-store pickup services are highly popular with online consumers, and retailers such as Wal-Mart, Best Buy and Argos (UK) report that 40% or more of their online orders are picked up in-store. Yet many retailers have generally been slow to offer such services because they are difficult and costly to implement.
In-store pickup services are highly popular with online consumers, and retailers such as Wal-Mart, Best Buy and Argos (UK) report that 40% or more of their online orders are picked up in-store. Yet many retailers have generally been slow to offer such services because they are difficult and costly to implement.
As traditional retailers lose customers to Amazon and other online pure plays, however, more merchants are coming to see store pickup programs as a powerful way to win back customers. “Once a shopper enters a store to collect an online purchase, a retailer can realize multiple benefits,” said eMarketer principal analyst Jeffrey Grau and author of the new report, “In-Store Pickup: Retailers Expand Efforts to Win Over Online Shoppers.” “People who pick up orders at a store often make additional purchases. And converting a single-channel shopper into a multichannel shopper typically results in a significantly more profitable customer.”
A December 2011 survey from Boston Retail Partners revealed that retailers in North America are getting the hint and making store pickup programs a relatively high priority. Thirty-eight percent of respondents said they had implemented a store pickup program, and another 46% indicated they had plans to launch such a program.
A December 2011 survey from Boston Retail Partners revealed that retailers in North America are getting the hint and making store pickup programs a relatively high priority. Thirty-eight percent of respondents said they had implemented a store pickup program, and another 46% indicated they had plans to launch such a program.
“Once an online shopper comes to a store, a retailer (and the customer) can realize a number of benefits,” said Grau. For example, in May 2011, Shopping Centers Today reported that Best Buy had found that multichannel customers spent 95% more than single-channel shoppers and generated 80% more profit. Similarly, Target revealed that multichannel customers spent $1,000 per year, vs. $551 per year for store-only shoppers and $94 for online-only customers.
Retailers are developing more sophisticated store pickup services that aim to provide greater convenience for online shoppers and even taking back share from online-only retailers. “But even more significantly,” said Grau, “the growing popularity of store pickup services and omnichannel shopping in general are spurring retailers to reimagine the purpose and design of their stores to meet the demanding expectations of 21st century shoppers.”
The full report, “In-Store Pickup: Retailers Expand Efforts to Win Over Online Shoppers,” also answers these key questions:
This report is available to eMarketer corporate subscription clients only. Total Access clients, log in and view the report now.
Retailers are developing more sophisticated store pickup services that aim to provide greater convenience for online shoppers and even taking back share from online-only retailers. “But even more significantly,” said Grau, “the growing popularity of store pickup services and omnichannel shopping in general are spurring retailers to reimagine the purpose and design of their stores to meet the demanding expectations of 21st century shoppers.”
The full report, “In-Store Pickup: Retailers Expand Efforts to Win Over Online Shoppers,” also answers these key questions:
- How have multichannel retailers innovated with their store pickup services?
- What are the critical success factors for running a store pickup service?
- How will these programs evolve in the future?
This report is available to eMarketer corporate subscription clients only. Total Access clients, log in and view the report now.
