The results of a representative survey of 300 branch managers, undertaken by MRA Reports, shows that 67% of general builders’ merchants in the UK expect Click & Collect sales to increase at their branch over the next 12 months.
The survey forms a part of a quarterly update report on the UK builders' merchants' market, which provides a review of key market events, M&A activity and updated forecasts to 2030 based on new data as well as merchants' responses to the survey.
Merchants were asked what delivery and collection options they offered to customers. Next Day Delivery is now offered by more than 90% of general builders' merchant branches. Some merchants offer Next Day Delivery as their standard delivery option, while others have a standard delivery time of 3-5 days.
Over three quarters of merchants now offer Click & Collect. Same Day Delivery was offered by a lower percentage of branches; however, delivery times are often highly dependent on how busy the branch is, rather than what the customer wants. If there is capacity, delivery may take place on the same day even where it is not defined as an offer.
Asked how they thought the delivered-collected mix might change in the next 12 months, most branch managers (a net 62%) expected Click & Collect to increase as a share of sales. Many commented that they had recently introduced Click & Collect, and this - in combination with increasing online sales - provides substantial growth potential.
Not everyone offers Same Day Delivery, but comments suggest that merchants are recognising that customer expectations are increasing in terms of delivery times. Next Day delivery is becoming the standard and a net 29% expected Same Day delivery to increase over the next year. However, 10% expected Same Day delivery to decrease as business picks up and the branch gets busier.
Anna Eriksson of MRA Building Market Reports said: "Having run this survey over three consecutive quarters, we are seeing the number of branches offering Click & Collect increase each quarter. Some merchants are actively pursuing the online sales channel and setting ambitious growth targets.
"The fact that Same Day delivery availability depends on merchants' workloads could be viewed as an issue. However, in reality, most merchants are highly customer oriented and will meet customers' requirements wherever possible. Same Day delivery is often offered as an added extra, rather than a promise. There are higher expectations for weather dependent work and among DIY customers.
"While the long-term trend is towards growth in Click & Collect and faster delivery options, we are currently seeing some opposing movements that we believe to be temporary. With both fuel and material prices at historically high levels, customers are often happy to wait longer if it means avoiding delivery surcharges."
