In 2020, U.S. shoppers spent $72.46 billion through click and collect (delivery method), accounting for 9.1% of all e-commerce sales. This year, this figure is expected to increase by 9.9% to $83.47 billion.
Relevant data shows that seven major click-and-collect multi-channel retailers account for 64.0% of click-and-collect sales in the United States , such as Walmart, Home Depot, Best Buy, Target, Lowe's, Macy's and Nordstrom, with a total click-and-collect sales of more than $46 billion.
These seven companies are representative of the companies that have taken advantage of the surge in sales from click and collect interest. Among them, Target's sales increased by 734% in the second quarter of 2020, and then maintained a year-on-year growth of 500% in the next quarter. Despite the large-scale shift to curbside service, Target's in-store click and collect also increased by more than 60% in the second and third quarters of 2020, and increased by more than 50% in the third quarter.
As consumers got used to these options, momentum accelerated: In a March 2021 earnings call, Target reported that Drive Up sales had grown more than 600% for all of 2020, and in-store pickup had grown more than 70%.
Home Depot reported more than 60% digital sales in its second and third quarters of 2020, a figure that was heavily influenced by in-store pickup. Lowe’s reported a nearly identical ratio of delivery to in-store pickup for the year, as well as 111% year-over-year e-commerce sales growth in 2020. Best Buy recently reported that 48% of its online sales were picked up in stores in 2020.
Taken together, these data points paint a vivid picture. For these major retailers, click and collect accounts for more than a third of all their e-commerce sales. Among the “top five” click and collect retailers, returning customers account for 41.9% of their e-commerce sales and more than half of their e-commerce growth last year.
Click-and-collect has proven to be a driver of e-commerce growth for large U.S. retailers in 2020, including The Home Depot (73.4% of e-commerce growth), Lowe's (72.1%), and Best Buy (44.8%).
Home improvement retailers were the easiest to click and collect, given the size and weight of many products, and the fact that buyers, including small businesses, contractors and repair service providers, often need to purchase these products immediately. Big-package retailers followed home improvement retailers, followed by Macy’s and Nordstrom, which had the fewest changes to click and collect.
The lower figures for department stores can be partly attributed to the complete closure of certain stores during the COVID-19 pandemic, which ruled out click and collect and forced customers into traditional e-commerce delivery methods. In addition, demand for apparel was lower last year compared to other product categories. However, the lower click and collect rates for department stores can be attributed to consumers who still prefer home delivery over purchasing lower priority, less time-sensitive items such as apparel and accessories. USA Click to Collect Consumption |
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