C&C a 'Core Driver' of CPG Ecommerce

Every week, some grocery delivery service – grocer-owned or third-party – seems to be expanding into a new area of the country. Yet one would be remiss to assume that this is the only engine seriously developing CPG ecommerce: New research from Chicago-based data and analytics firm IRI reveals click-and-collect to be a “core driver” of  ecommerce growth  – one strongly favored by consumers.

While only 8 percent of U.S. shoppers have purchased products using a click-and-collect program, 82 percent of this number would “definitely” or “probably” use such a service again, the firm's report revealed. Click-and-collect allows for the convenience of online shopping but without the nuisance of paying fees or delivery delays, as the shopper takes complete control over the last mile. Additionally, click-and-collect integrates a retailer's ecommerce and brick-and-mortar platforms into one shopping experience.

According to the research, click-and-collect will make up a significant chunk of sales as ecommerce grows in the coming years: Ecommerce will comprise roughly 11 percent of CPG sales by 2022, reaching $88 billion in revenue. $6.6 billion of that is expected to come from click-and-collect.

“While some retailers are rapidly expanding their click-and-collect offering, many have yet to make the service available to the majority of their shoppers,” said Robert Tomei, IRI's president of consumer and shopper marketing. “IRI’s survey results represent an immediate opportunity for retailers to appeal to the hearts of many shoppers who are demanding and embracing convenient shopping options and seeking out retailers that provide the best opportunities.”

Additional findings include:

• Some 69 percent of respondents use click-and-collect to avoid shipping charges, the most frequent reason for using the service. Additionally, half of all users cited time savings as a motivation to use the service.
• Some 69 percent who went to the store to pick up their orders ended up buying additional items, showing that there are, in fact, opportunities for cross-selling and impulse purchases when shoppers leverage click-and-collect.

“It is still possible to encourage impulse purchasing in an online environment, but the mechanism is shifting from in-store end cap and register displays to suggested-purchase options as shoppers fill their online carts,” said  IRI Ecommerce Practice Leader Sam Gagliardi. “Developing and implementing highly targeted digital campaigns based on real customer shopping data will be the key to driving those unplanned purchases.”