Will delivery subscriptions counter threat of Amazon Prime?

Department stores and fashion retailers should consider delivery subscriptions to counter the threat of Amazon Prime.

This is according to the latest report from GlobalData who highlights that brick and mortars are losing market share to online pureplay retailers.

The company’s latest report, Deliver Saver Schemes in the UK – 2017, reveals that 22.2 per cent of online shoppers are subscribed to a non-food delivery saver scheme and 29 per cent are subscribed to a food and grocery delivery saver scheme.

One in every five online shoppers in the UK is signed up to a delivery scheme, with Amazon Prime leading the way.

When online shoppers were asked which retailers they would like to introduce a delivery saver scheme, the top five retailers chosen were Argos, Marks & Spencer, John Lewis, Boots and Debenhams.

Charlotte Pearce, retail analyst at GlobalData, said: “As department stores and leading clothing retailers in particular have such a wide range of products available online, a delivery saver scheme can offer consumers value for money as after a few orders, subscribers have effectively made their money back on the equivalent cost of deliveries.”

Online sales are forecast to grow by £17.7bn by 2022.

“At a time where a number of retailers in the UK are struggling to maintain healthy store sales but online sales continue to increase, delivery saver schemes allow retailers to capitalise on online growth and increase shopper loyalty,” continued Pearce.

“The benefits of these schemes are clear – they encourage subscribers to shop more frequently with the retailer, resulting in higher annual spend, thus leading to growth in online sales.”

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