1. 1 planetretail.net UK Click & Collect Retail fad or future of the high street? April 2014 Natalie Berg Global Research Director TREND REPORT © Tesco

2. 2 1.Setting the Scene 2.Variations of Click & Collect  Instore collection  Third party stores  Lockers  Future innovation 3.Conclusions Contents

3. 3 Reserve and collect (without online payment) was the first step in the evolution of click & collect retailing. Pioneered by non- food retailers such as Argos and Halfords. As payment systems grew more sophisticated and interlinked, non- food retailers began offering click, pay and collect services at larger units. Grocery retailers realised the ‘size of the prize’ and drove the uptake of click & collect services outside of the non- food arena. Grocery retail players took click & collect to the next level via new ways in which to collect products. Drive is one such method. Meanwhile, more non-food retailers began exploring alternative collection points as a way of providing added choice and convenience for the shopper. Lockers started popping up in shopping centres, apartment buildings and even in other retailers’ shops, although adoption is far from widespread. The evolution of click & collect – are we there yet? 1. Setting the Scene Click & collect has come a long way in the UK but there is still more to be done.

4. 4 The click & collect grocery race is heating up with alternative collection points. RetailerYear launchedNo. of grocery C&C sitesAlternative collection points 2012316Car parks (tube stations) --- --- --- 2010232 Airport, Car parks (tube stations, schools, libraries, sports centres) 2009168 Lockers (to be installed in tube stations) 55% of Waitrose stores offer a grocery click & collect service. *Note: referring only to the collection of grocery items. Sainsbury’s and M&S do offer click & collect for non-food products. 2. Variations of Click & Collect: Instore collection But Sainsbury’s, in particular, is missing out. “We have smaller stores than our competitors in much more accessible locations. We think those two things are key reasons why click & collect might work for others and may not be right for our business.” JUSTIN KING CEO

5. 5 But… only a fraction of UK shoppers currently collect from a locker In under three years, Amazon UK has gone from 0 to 12,000 individual slots available in nearly 300 lockers. Lockers: Best practice 2. Variations of Click & Collect: Lockers InPost to install 2,000 lockers across the UK in 2014. © ukintpress.com 4%