The context
With sales declining in value terms in many categories, retailers are looking to improve efficiency across all costs. As a major expense, the last mile of delivery is a top priority.
For consumers, food inflation in Europe (up by 23% over 2 years to the end of December 2023 in the Eurozone) prioritised less expensive solutions compared to home delivery to collect orders from the Web, such as automated lockers and relay points.
In France, Sendcloud reports in 2023 that 32% of parcels were delivered to a pick-up point. According to the study, which is based on data from 25,000 e-commerce sites in Europe, the number of parcels shipped directly to a pick-up point increased by 25% in France between 2022 and 2023.
The appeal of out-of-home delivery via lockers or pick-up points is a new European phenomenon, according to DHL’s Online Shopper Survey 2023. The preference for home delivery fell from 73% in 2022 to 64% in 2023 (-9 points) In 2023, 24% of Europeans preferred pick-up points and lockers to collect Web orders and 12% wanted a collaborative delivery via a neighbour. “This means that every year, almost one million European consumers switch from home delivery to out-of-home order collection“, summarises the study. Results are varied by country. In France, 63% of consumers prefer home delivery, 28% like pick-up points and lockers, and 10% opt for delivery via a neighbour. 43% of Swedish consumers prefer pick-up points and lockers, 45% like home delivery and 12% want delivery via a neighbour. 56% of Polish consumers prefer lockers and pick-up points, 38% request home delivery and 7% ask for neighbour delivery.
In both supermarkets and specialist retailers, the validity of free delivery is increasingly under scrutiny alongside returns at no cost. At E.Leclerc (46% food e-commerce market share in France in 2023), the predominant model is the “drive through”. “For the past two years the chain has charged €9 for delivery,” observes an expert. “However, E.Leclerc still hasn’t found a winning model, and they don’t offer many delivery slots. Other retailers promote free delivery with orders from €130 or €140. This means that in reality, the customer pays for it in the price of a basket. The cost of home delivery, if the regulations are followed, is always more than €20 in the food sector.”
For property companies, the need to support customers with omnichannel services for pick-up is increasingly relevant. Some are offering lockers that are accessible only when the mall is open, like Galimmo, whose Cora-anchored malls attracted 120 million visitors last year. Due to be taken over by Carmila, Galimmo signed in October 2023 an agreement with Quadient to install multi-carrier lockers (Relais Colis, UPS, GLS).