Data: Retailers learn pandemic lessons with faster and more reliable deliveries

A study of 62 retailers found that despite the much-publicised supply chain issues that have plagued the sector for most of the year, delivery offerings are faster and more reliable than previous years, according to new data from Accenture. 

Its 2021 shipping study found that 85% of retailers delivered within six days, compared with only 72% of retailers in 2020.

The number of retailers offering next-day delivery as standard for customers has also surged, up from only Amazon last year to eight retailers in 2021. 

While deliveries are faster this year than last, customers have experienced more checkout issues – with 13% of shoppers reporting some sort of cart/technical issues compared with just 10% last year. 

In the run-up to Christmas – and despite current supply chain issues – new data shows that retailers have learned lessons from the past 18 months. 

The problems experienced included items going out of stock while in the basket, the appearance of code on the website, making order confirmation unclear, payment not going through and customers being logged out of their account.

As next-day delivery has become more ubiquitous in UK retail, the price for it has come down as retail supply chains have strengthened. 

With more retailers (77% in 2021 compared with 70% in 2020) offering next-day services, prices paid for the service by customers have fallen by almost £1 – £6.14 in 2021 vs £7.10 in 2020.

The number of retailers offering click-and-collect services has jumped to 74% in 2021, while the number of retailers offering this service to customers for free has almost doubled to 64%. 

However, with many customers continuing to work from home during the pandemic, the number of retailers offering designated delivery slots has reduced – with 37% of retailers offering customers the opportunity to select a delivery day (down from 39%) and only 13% offering a time slot, compared with 19% last year. 

While standard delivery times have come down in 2021, Accenture found that more retailers and brands are charging a fee for standard delivery.

Last year 19% of retailers offered customers standard delivery without a fee. In 2021 that number fell 6% to 13%. 

While the number of retailers offering free standard delivery has fallen, average daily delivery charges have remained broadly flat – £3.89 in 2021, compared with £3.93 in 2020. 

Delivery services have also become more reliant as the pandemic has continued, with 70% of retailers offering average latest promised delivery date to six days in 2021, down from seven days in 2020. 

The data also found that UK grocery supply chains are holding firm as they come into the busy Christmas trading period. 

However, while the shelves remained well-stocked, Accenture said that the ongoing HGV driver shortage combined with increased consumer demand means that two of the major supermarkets are already fully booked up on Christmas collection days.

By category, the hardest hit sector by supply chain issues has been toys, with the top three-rated specialist retailers holding only 46% of the top-rated stock, compared with 90% by Amazon. 

The hardest hit sector by supply chain issues has been toys, with the top three-rated specialist retailers holding only 46% of the top-rated stock, compared with 90% by Amazon

Accenture UK & Ireland retail strategy lead Kelly Askew said: “It’s been a uniquely turbulent year for retailers. The pandemic altered consumer behaviour like never before, driving people to use new channels, only for major supply chain disruptions and worker shortages to send businesses scrambling to meet demand in the run-up to the festive season.

“These new findings show us that retailers are rising to the challenge, with marked improvements on their performance compared with last year.

“The businesses in our study have clearly used the last 12 months to strengthen their delivery capabilities as more and more shoppers opt for the convenience of online.

“As fears over Covid have come back to the fore, shoppers may be less comfortable about hitting the high street to stock up for the season, but will still be desperate to make up for the ‘Christmas that wasn’t’ in 2020.

“The ability of retailers to offer a faster and more reliable delivery service will be crucial for consumers, now more than ever, and could see some brands secure new loyal customers if their ecommerce offer saves someone’s Christmas.”