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Retail Channel Series: Delivery saver schemes in the UK - 2019

Retail Channel Series: Delivery saver schemes in the UK - 2019

  • September 2019
  • 36 pages
  • ID: 5825139
  • Format: PDF
  • By GlobalData

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Retail Channel Series: Delivery saver schemes in the UK - 2019

Summary
Over a quarter of non-food online shoppers have subscribed to a delivery saver scheme, such as Amazon Prime or ASOS Premier, in the past 12 months, as shoppers increasingly desire fast low-cost fulfillment. This figure rises to 44.8% for 16-24s as this demographic is well-served by clothing & footwear retailers offering schemes as they purchase online frequently, and have high expectations of fulfillment options.

This percentage is likely to rise as more clothing & footwear specialists are expected to launch schemes in the future (Topshop, Miss Selfridge and QUIZ have all introduced schemes recently), as they can be used to boost shopper loyalty in the competitive young fast fashion market.

The price of ASOS Premier increased from £9.95 to £14.99 in August 2019, but since the cost of its next day delivery is £5.95 outside of Premier and the retailer sells a huge range of products and brands, this rise was justified. However, at the start of October ASOS lowered the price back down to £9.95 after less than two months - proving that consumers were not willing to pay more, and other competitors’ schemes are also pegged at the £10 mark.

A number of clothing and footwear retailers have increased the price of their next day delivery, encouraging shoppers to sign up to their delivery saver scheme as the cost equates to the price of next day delivery for two orders. For instance, Missguided increased its next day delivery cost from £3.99 in 2018 to £5.99 in 2019, and boohoo.com has lifted its charge from £4.99 to £5.99.

The percentage of food and grocery online shoppers that subscribe to a food and grocery delivery saver scheme has risen from 35.1% in 2018 to 37.0% in 2019, as an increasing number of shoppers are purchasing food & grocery online more regularly, warranting the cost of a delivery saver scheme. Ocado is the most successful grocer at converting shoppers to become members of its delivery saver scheme, with 40.2% of those who have purchased from the retailer in the past year subscribing to its smart pass. This is despite having the highest cost of subscription, though this is less likely to put its affluent shoppers off, and Ocado can tempt shoppers with additional benefits such as exclusive offers and a subscription to Ocadolife magazine.

There has been little change in the delivery saver schemes offered by grocers in the past year, with the exception of Tesco’s. The retailer has introduced a same-day option for its saver scheme, helping to boost the percentage of its shoppers subscribing from 20.8% in 2018 to 30.7% in 2019, while fending off competition from Amazon Fresh.

The Delivery Saver Schemes in the UK - 2019 report offers a comprehensive insight into the consumer dynamics and spending habits of consumers that subscribe to food & non-food delivery saver schemes. The report analyses the two types of delivery schemes including their usage at various retailers and consumer attitudes.

Scope
- The most significant feature that would persuade non-subscribers to sign up to a saver scheme is rewards, including loyalty points and free gifts.
- Most consumers are reluctant to pay more than £10 a year for a delivery saver scheme - with the exception of Amazon, for which the lure of additional benefits and same day delivery warrants the £79 annual cost.

Reasons to buy
- Use our in-depth consumer insight to learn how delivery saver schemes can impact consumer shopping habits and ensure that your delivery options meet the needs of shoppers.
- Understand what drives consumers to subscribe to a delivery saver scheme, such as how much consumers are willing to spend on these options in order to maximise sales potential.
- Use our in-depth analysis of the leading retailers that offer delivery saver schemes in order to understand how to appeal shoppers and maximise uptake of these services.

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