120 Days of Retail: Day 67 - Why Having a Pick-Up Option is the Future for Local Retail

The COVID-19 pandemic accelerated the trend towards contactless commerce, and businesses of all types have responded by offering more pick-up options. Whether you're ordering food, groceries, or clothing, pick-up is becoming an increasingly popular option for consumers. Let's take a closer look at why restaurants and retail stores benefit from implementing a pick-up option, and how this trend is likely to continue in the coming years.

Restaurants have been quick to embrace pick-up options, and for good reason. According to a recent survey by the National Restaurant Association, 84% of consumers have used a restaurant's curbside pick-up option since the pandemic began. This shift towards off-premises dining has been a game-changer for the industry, with many restaurants reporting that pick-up orders account for a significant portion of their sales.

One of the biggest benefits of pick-up for restaurants is increased revenue. The average check size for pick-up orders is 20-30% higher than for dine-in orders, according to a recent survey by the National Restaurant Association. Additionally, offering pick-up can help restaurants tap into a new customer base. The same survey found that 63% of consumers who used a restaurant's curbside pick-up option during the pandemic were new customers.

But pick-up is not just about the money. It also offers benefits for restaurant operations. By separating pick-up orders from dine-in orders, restaurants can reduce wait times for customers and improve overall customer satisfaction. This is particularly important in a post-pandemic world, where customers are increasingly looking for contactless options that minimize their time spent in public places.

The retail industry is also seeing the benefits of pick-up options. According to a recent survey by the National Retail Federation, 67% of consumers have used a retailer's pick-up option at least once, and 88% of those who have used it said they were satisfied with the experience. This is good news for retailers who are looking for ways to compete with online retailers like Amazon, which have dominated the e-commerce space in recent years.

One of the biggest advantages of pick-up for retailers is the ability to offer a contactless, convenient option for customers. According to a recent survey by Deloitte, 29% of consumers said they were using more curbside pick-up options than they did before the pandemic. This shift towards contactless commerce is likely to continue, as consumers become increasingly comfortable with using technology to make their purchases.

Pick-up also offers benefits for retailers in terms of cost savings. By fulfilling orders from their stores, retailers can avoid the costs associated with shipping from warehouses or distribution centers. This can be particularly beneficial for smaller retailers who don't have the resources to compete with larger e-commerce giants.

Another advantage of pick-up for retailers is the ability to use their physical locations as a competitive advantage. According to a recent survey by the National Retail Federation, 59% of consumers said they were more likely to shop with a retailer that offered a buy online, pick-up in store (BOPIS) option. By offering pick-up, retailers can use their physical stores to provide a level of convenience that online retailers can't match.

Of course, offering pick-up options requires investment in technology and infrastructure. According to a recent survey by the National Restaurant Association, 39% of restaurant operators said that implementing or improving curbside pick-up was a top priority for their business. For retailers, implementing pick-up options requires similar investments in technology and training for employees.

However, the benefits of pick-up make this investment worthwhile. By offering a contactless, convenient option for customers, businesses can improve customer satisfaction and increase revenue. This is particularly important in a post-pandemic world, where customers are increasingly looking for ways to minimize their time spent in public places.

As we move towards a more digital and contactless future, pick-up options are likely to become even more important for businesses. According to a recent report by eMarketer, click-and-collect sales in the US are expected to reach $83.47 billion in 2022, up from $62.46 billion in 2020. This growth is driven by consumers' desire for convenience and speed, as well as the increasing availability of pick-up options across industries. Businesses that are able to adapt to this new reality by offering pick-up options are likely to thrive in the years to come, while those that don't may struggle to keep up. Ultimately, pick-up is a win-win for businesses and consumers alike, offering a contactless, convenient option for purchasing goods and services that is likely to become the norm in the years to come.