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The constant need to match customers buying habits and needs together with technological advances has led most retailers to look at how customers order and in recent years to offer click and collect as an option. Together with the more traditional channels such as online and in store. Most retailers have embraced this omnichannel approach, others have been slower on the uptake. Recently, M&S reported a further expansion of click and collect to another 100 stores, proving this ever growing service is becoming more and more popular with retailers and customers.
However, the more advanced retailers are now finding that this type of strategy does present problems, not least with the affordability of such services. John Lewis has now announced that for all click and collect purchases under £30 it will charge a £2 fee, claiming that without this charge the service is not sustainable.
Whilst John Lewis aims to be at the forefront of customer service and innovation, it is now proving that being at the forefront does not necessarily mean that that it will find the best balance of services and channels from the start. Indeed, what the news clearly shows is that the need for continuing development in the retail channels has to be balanced with the investment and the potential returns from these investments.
With technological evolution driving the buying behaviour of customers it is a constant battle for retailers to keep pace. The latest changes from John Lewis are sure to attract criticism from customers and consumer groups alike, but in order to maintain a profitable business and to deliver a high level of service. Customers need to recognise the investment needed to deliver multiple channels, likewise, the retailers need to balance the service requirements against the cost involved. The question is, should John Lewis continue without charging for the lower value click and collect to maintain their position?
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