FSP Retail

FSP Retail Blog

Reserve, Collect and Spend a Little More

Posted At : 16 June 2009 11:49

I see David Wild has noted that “Reserve & Collect success drives 90% growth in multi-channel revenue” when announcing the Halfords preliminary results last week. What he means is that Halfords are making a killing out of people who can’t be bothered to go and look around the shop, or, more likely, are savvy enough to know that time spent in a fruitless search around the shop is time lost from more worthwhile pursuits. Halfords have tapped into the very sound idea that people can surf for their goods from the comfort of their own home, then pop in to collect when they’re out and about anyway. This saves on the delivery charge for the customer, but has the benefit that these customers are brought into the store anyway, offering Halfords the opportunity to persuade them to part with more cash whilst they’re there. Looks like a win:win to me.

But, with Verdict announcing that “online spending is growing by £2.4 billion in 2009” and “e-Retail is proving to be a star performer in the recession”, where does this leave the average store and the already much-trampled retail property business?

As FSP knows, through extensive research in the retail world, people don’t just shop because they need something. Those that do, who are driven by efficiency, will be the first to make their shopping event even more efficient by use of the internet and such initiatives as “Reserve & Collect”. But, what about the others? There are those who are driven by the purchase itself and those who see it as a social event. With the desire to find something with which they will be really pleased, the purchase driven consumer will still hunt around the shops. Whilst the leisure driven consumer is unlikely to see web-browsing as adding to their enjoyment. For them, shopping is a well-crafted hobby, irrespective of the resulting purchase.

Whether you’re a retailer, a shopping centre owner or involved in town centre planning, you have to know your catchment and then target your stores or product to reach those who want to get out and shop.