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John Lewis: The first department store to introduce a charge for 'Click and Collect'

By Vivian Hendriksz

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Retail

British department store group John Lewis is taking a stance against free delivery and is set to introduce a 2 pounds charge for 'click and collect' orders under 30 pounds from the end of July.

John Lewis is the first department store to introduce a charge for 'click and collect' orders after claiming that the current free service was "unsustainable" and "bonkers." From July 28, the department store will incur the new charge for orders under the 30 pounds mark for delivery to any John Lewis store or sister chain Waitrose, which account for close to 18 percent of the John Lewis's online orders. Orders of 30 pounds or more will still be free.

The department store, which first launched its 'click and collect' scheme in 2008, argues that the logistics of shipping regular orders of small and inexpensive items, such as lipsticks or compacts, has become overwhelming."We are sure customers will understand why we are doing this. There is a huge logistical operation behind this system and quite frankly it’s unsustainable," commented Andy Street, Managing Director at John Lewis. "We consider ourselves to be leaders and we want to take the lead on this."

John Lewis claims free delivery is "unsustainable"

Customers understand John Lewis has been around for 150 years and we’ll be around for another 150 years. They understand we’re a good corporate citizen and can’t give everything away for free." The new charge is expected to cause something of a backlash amongst John Lewis customers, with some already taking to social media platforms to share their thoughts on the 2 pounds charge, although the department store group assures that it will still offer plenty of alternative delivery choices for consumers to choose from.

The announcement comes as online shopping continues to grow across the industry. John Lewis processes over 6 million 'click and collect' orders a year, a vast increase from the 350,000 orders processed in its first year. "John Lewis is committed to being a leading omni-channel retailer and understands the importance of providing its customers with choice, convenience and above all else a long-term commitment to customer service," added Mark Lewis, John Lewis’s Online Director.

He added that the "change we have announced will mean that the majority of orders will remain free of charge while allowing us to invest further in the expansion of click and collect to ensure it continues to delight customers as it grows in popularity." The department store group aims to continue investing in creating a seamless omnichannel shopping experience, investing over 80 million pounds in its supply chain and 100 million in IT this year alone.

The announcement comes as Amazon.co.uk revelead plans to offer one-hour delivery on over ten thousands items to certain postcodes in London for its Prime members. The new service, named Prime Now offers delivery in under one hour for 6.99. John Lewis's Managing Director stated that he was "not concerned" with other retailers decisions to speed up or improve their delivery options or offer lower delivery costs. Others wonder if John Lewis new charge will lead to other retailers charging for 'click and collect' delivery services.

However, rival high street retailers, such as Marks & Spencer and House of Fraser have already stated their plans to continue offering free 'click and collect' services.

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