Why Local Shops are Feeling the Pinch!

Thanks to my Institute The Chartered Institute of Logistics and Transport published this article in this months briefing- It sets out clearly why local shops and town centres are feeling the pinch!

Shoppers from across the UK are spending a staggering £3,523million per year, that's £136 for every household in the UK*, on delivery charges for online shopping, but believe it's a price worth paying, according to research commissioned by Trimble. The study by OnePoll, which surveyed 1,000 UK adults, revealed that rising petrol costs, bagging a bargain and the convenience of shopping from the sofa are among the key reasons that make the average £2.99 delivery charge per order worth the money.

The Trimble research supports reports of a growing increase in shopping online, with nearly two thirds of shoppers saying they buy more online now than they did five years ago and 88.9% agreeing they expect to be spending more or the same online between now and 2017.

Convenience (36%) is cited as the key reason for shopping via the web but crowded high streets and shopping centres (20%) and busy lifestyles (15%) are also driving UK shoppers to abandon the high street. Controversially, 7.6million UK adults would go as far as to say that the UK high street is dead and over fifth of all respondents would like to do most of their shopping online, if they could.

Perhaps surprisingly, the current economic hard times are playing a part in encouraging consumers to shop online. High petrol prices and hefty car park charges are seeing many shoppers opting to stay at home and order via the web, preferring to pay for home delivery.

When it comes to charges one quarter of UK adults believe that delivery costs are too high, but the Trimble report revealed that consumers are prepared to pay to get the items they want, when they want; 40% of shoppers are willing to pay for next day delivery, 22% would pay for delivery within a two-hour slot and nearly three quarters of respondents agree that fast delivery is a key factor when shopping online.

But it's clear that paying a delivery charge sets an expectation with consumers for a quality service. UK shoppers' value being able to choose a delivery slot, being kept updated if there are any changes to arrival times and friendly delivery teams.

Not surprisingly then, UK consumers biggest gripes with online shopping are missing a delivery and the parcel being returned to the depot or post office (30%), long delivery time (20%) and high delivery costs (29%), overall contributing to nearly half of all adults feeling unsatisfied with the last delivery to their home.

"Effective delivery is critical to a positive service experience, but the study shows that many companies are not meeting their customer's needs," said Mark Forrest, general manager of Trimble's Field Service Management Division.

"The key is keeping commitments; making ones that the company can keep and then ensuring the customer is informed along the way. As the online era is here to stay retailers have a real opportunity to improve their brand recognition and leapfrog the competition by providing excellent customer service."

*Based on 26 million households