Shoppers prefer click and collect for cost savings

Shoppers enjoy the click and collect service offered by major supermarkets. This allows customers to order groceries online and pick them up at their convenience without any extra fees. However, the cost of providing this service is a growing concern for supermarkets like Woolworths and Coles. Experts estimate that click and collect may cost the supermarkets around $600 million a year. This amount could increase to $1.5 billion annually within five years, according to Citi analyst Adrian Lemme. Despite these costs, letting customers pick up groceries for free is important for maintaining goodwill during a time when supermarkets are often blamed for rising living costs. The supermarkets are wary of starting to charge for click and collect, as it could upset customers already frustrated with rising prices. They are also waiting for a government report that could further scrutinize their pricing practices. Click and collect is becoming an essential service, making up 40 percent of online sales for supermarkets. In contrast, home delivery typically incurs fees based on basket size and delivery speed, making click and collect more appealing to budget-conscious shoppers. Though some believe supermarkets may eventually need to introduce a fee structure for click and collect, they are cautious. For now, this service provides a competitive advantage over stores like Aldi and Costco that do not offer it. Given the current economic challenges, supermarkets may choose to bear these costs to keep customers satisfied.