The run up to the Christmas season always seems to trigger familiar feelings, a mixture of excitement and pressure – especially when it comes to picking out the perfect present for a loved one. When we are balancing the responsibilities of work and family, however, it can be a challenge to get out to the shops to buy that ideal gift.
But, whether we’re meeting an old friend or attending a family event, no one ever wants to turn up empty handed. So it’s not uncommon to see people quickly picking something up on the way, a generic box of chocolates from the supermarket or a bunch of flowers from a petrol station. If they want something more personalised, they might print out an e-gift card or voucher at home, which can be slipped into a card. But neither option ever feels particularly considered or thoughtful.
Retailers know this behaviour well. It’s a scenario that plays out every year. Even if consumers want to give a more meaningful gift, the ‘good enough’ last-minute option tends to be more convenient, if not particularly memorable.
The emergence of on-demand and rapid delivery is changing what’s possible with gifting, however. A consumer, who remembers at 3pm that they need a gift for a dinner party that evening, can now browse their favourite retailer’s ecommerce website to curate a custom hamper or bouquet, and have it delivered within hours. This is far more appealing than defaulting to leftover tulips at their closest supermarket.
This shift in logistical possibilities is helping consumers to reimagine the retail experience. It is also enabling retailers to extend their scope, beyond impulse and last-minute ‘good enough’ purchases. It’s helping them to capture those higher-value shopping experiences that drive brand loyalty.
The growth of on-demand delivery
This on-demand retail delivery trend first saw its star rise during the pandemic, when people couldn’t get out to the shops. But such has been the success, particularly with supermarkets, that interest from non-food retailers has grown. On-demand sales for non-food items are now growing at such a rate that they are expected to surpass groceries sales by 2030.
A recent research report, produced by Uber Direct and Retail Economics, found that consumers are also prepared to pay a premium for these faster, more convenient deliveries – 52% say they would pay extra to get goods within two hours.
We’re now seeing brands, such as The Fragrance Shop, offering their customers delivery within 60 minutes. And, as consumer demand for rapid retail delivery grows, expect to see this trend snowball. More retailers will be able to capture those last-minute shopping moments, and turn those ‘good enough’ items into more thoughtful purchases.
A prime opportunity
The only factor preventing this trend from moving faster is retailers’ logistical abilities to meet the orders generated. Currently, there are just 22% of retailers offering on-demand delivery in the UK, with many citing the need to establish a supporting infrastructure as a barrier to adoption. The reality, however, is that tools exist and solution providers are in place to make this transition not only feasible, but profitable.
Some retailers have resolved this challenge by leveraging their existing store networks as micro-fulfilment hubs and partnering with last-mile delivery partners. This is enabling retailers to connect their local inventory with local demand, while simultaneously providing customers with what they value: choice, flexibility and immediacy.
As we approach the end of the year, the emergence of timely delivery services means gifting doesn’t have to be generic. With those rapid delivery options available, retailers can help their customers choose the perfect present, even when they are strapped for time.
But, by embracing rapid delivery, retailers will not just be responding to customer behaviour, they will be shaping it. They will be helping to transform what’s possible when consumers need to find a gift at the last minute by allowing them to find the ideal item for the people they love.
