Christmas delivery delays cost retailers 3.9 billion pounds

Christmas delivery delays led to a potential loss of 3.9 billion pounds for retailers in 2016, according to new research, with a total of 20 million UK shoppers encountering problems last year during the festive period, up by 13 percent on 2015.

According to research commissioned by The Institute of Customer Service, these experiences have influenced customers’ perception of retailers, affecting whether they return for their Christmas shopping this year.

Of the 2000 people surveyed for the research, 38 percent said they received their Christmas deliveries later than expected in 2016, with over half (52 percent) up to five days late. Of those experiencing delays, the proportion of customers missing out on high-value items is significant, with 42 percent spending over 300 pounds with a retailer who consequently failed to deliver the gift on time.

The research also highlights the correlation between punctuality and reliability of deliveries and customer retention, with almost three-quarters (71 percent) stating that they are less likely to shop again with retailers who fail to deliver on time, clearly indicating that delays will lose customers.

Jo Causon, chief executive of The Institute of Customer Service said: “Late deliveries are a recurring problem, and it is getting worse year on year. There are several components involved in getting the customer’s delivery delivered on time and it should be a priority of the delivery service and the retailer to ensure that this is done. Both businesses need to take responsibility, or face further financial losses next year.

“In an increasingly competitive market online – both throughout the festive season and beyond – retailers should prioritise providing customers with a consistent and reliable delivery service.”