Should stores charge for BOPIS?
Claiming the current free service is "unsustainable" for retailers and logistical suppliers, John Lewis, the U.K. department store chain, is introducing a £2 charge for click and collect orders under £30 starting July 28.
Orders worth more than £30 will still be free to collect in John Lewis. The change also applies to Waitrose stores.
The additional charge affects only 18 percent of the retailer’s orders and is designed to encourage shoppers to order more to improve the economics around BOPIS (buy online pickup in store.)
The store handles six million click and collect orders a year, up from 350,000 when it was launched in 2008. Orders are processed at distribution centers and then delivered to the designated shop.
"We are sure customers will understand why we are doing this," Andy Street, managing director of John Lewis, told the Guardian. "There is a huge logistical operation behind this system and, quite frankly it’s unsustainable. We consider ourselves to be leaders and we want to take the lead on this."
Photo: John Lewis
Mr. Lewis also pointed to the collapse last December of City Link, one of the UK’s largest delivery businesses, as a sign that many "illogical" business models stemming from omnichannel pushes have to change for retailers and logistics groups.
Competitors Marks and Spencer, House of Fraser and Next said they had no plans to start charging for click and collect. Sports Direct, the U.K.’s largest sporting goods chain, already charges for the service.
John Lewis made the announcement as Amazon rolled out one-hour delivery for £6.99 for Prime members in certain areas.
- Click & collect services – John Lewis
- John Lewis to charge £2 for click-and-collect – Telegraph
- John Lewis to charge for click and collect – BBC
- John Lewis to charge for click and collect orders under £30 – Financial Times (tiered sub.)
Should retailers charge for BOPIS? Do you agree that free BOPIS, at least for small orders, is unsustainable?