Introduction

Verdict Research: UK Home Delivery & Fulfilment 2007 provides a thorough analysis of the home delivery market - products ordered online, by phone, in store and by catalogue and delivered to the customer's home or another specifid location. It includes full analysis of a survey of 2,000 consumers, exploring their motivations for using home delivery and their expectations of home delivery services.

Scope

A thorough analysis of the UK home delivery market - products ordered for direct delivery to consumers via phone, online, catalogues or from stores. Comprehensive analysis of why shoppers use home delivery services, how satisfied they are with them and which service providers they use most. Detailed sector analysis for books, clothing & footwear, DIY, electricals, food & grocery, furniture, health & beauty, homewares and music & video. Overview and competitive assessment of leading logistics and fulfillment operators.

Highlights

After a weak performance in 2005 when it was affected by weak performance at mail order specialists, the home delivery market recovered impressively in 2006. The value of goods ordered from stores and delivered to the customer's home or another specified destination rose by 7.2% during the year - more than twice the pace of overall retail spending. In 2006 the value of home delivered electrical products amounted to £12.7bn, a 9.1% increase on the prior year, giving them a 54.5% share of the electricals market as consumers responded enthusiastically to the pipeline of new technology launches and physical retailers invested heavily in multichannel operations. Following two years of declines, the proportion of UK shoppers using home delivery has risen to 26.5m. With Internet usage highest among men, it stands to reason that they have increased their involvement ahead of women. However since women are more likely to buy via mail order catalogues, they continue to outnumber male home delivery shoppers.

Reasons to Purchase

Quantify and assess the opportunities offered by the home delivery market. Enhance your understanding of the demands of home delivery users to steer development of your home delivery service. Identify ways of broadening your appeal to target shoppers beyond your existing customer base.

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 15
Key Findings 15
Main Conclusions 16
CHAPTER 2 MARKET ANALYSIS 20
Introduction 20
Expenditure Growth 23
Home Delivery Market by Channel 26
Home Delivery Market by Sector 31
CHAPTER 3 CONSUMER RESEARCH SUMMARY 37
Key Findings 37
Introduction 38
Customer Characteristics 38
Newspaper Preferences 44
Delivery Frequency 49
Retailers Used 54
Motivations 59
Ordering Media 62
Satisfaction 67
Barriers to More Frequent Usage 71
Attitudes to Home Delivery Charges 73
Alternative Delivery Preferences 75
CHAPTER 4 SECTOR RESEARCH ANALYSIS 77
Books 77
Clothing & Footwear 85
DIY & Gardening 96
Electricals 106
Food & Grocery 114
Furniture & Floorcoverings 122
Gifts 130
Health & Beauty 138
Homewares 146
Music & Video 154
CHAPTER 5 HOME DELIVERY & FULFILMENT OPERATORS 162
Process 162
Sector Summary 163
Key Issues 164
Issues for Retailers 166
Solutions/Responses 167
Implications 168
Operator Services 171
e-Fulfilment Specialists 172
iForce 172
Metapack 173
Home Delivery Specialists 175
Home Delivery Network 175
Parcelnet 176
Home Shopping e-Fulfiment Hybrid 178
Zendor 178
Logistics Specialists 180
Christian Salvesen 180
DHL Exel Supply Chain 182
Unipart Logistics 183
General Parcel Delivery 185
Amtrak 185
Business Post Group 186
Parceline (Geopost) 187
Royal Mail/Parcelforce 188
LYNX Express 190
TNT Express 191
Unattended Delivery Solutions 192
CHAPTER 6 GLOSSARY 194
Abbreviations 194

LIST OF TABLES
Table 1: Total consumer expenditure on goods sent by home delivery 1996-2006 25
Table 2: Home delivery channels 1996-2006 26
Table 3: Home delivery market spending by sector 2001-06 32
Table 4: Year-on-growth rates by sector 2001-06 32
Table 5: Home delivery shares of sector spending 2001-06 33
Table 6: Home delivery shopper base and penetration by sector 2006 43
Table 7: Regular daily newspapers read by home delivery customers 2006 46
Table 8: Regular Sunday newspapers read by home delivery customers 2006 48
Table 9: Reasons for choosing order method 2006 64
Table 10: Popularity of ordering methods for home/work delivery by sector 2006 65
Table 11: Satisfaction with elements of delivery process 2005 on 2006 69
Table 12: Satisfaction by ordering method 2006 70
Table 13: Which of these reasons would make you more likely to use home delivery services? 2006 71
Table 14: Which of these reasons would make you more likely to use home delivery services? 2006 (Cont’d) 72
Table 15: Books – regional profile of home delivery shoppers 2006 79
Table 16: Clothing & footwear – regional profile of home delivery shoppers 2006 87
Table 17: DIY & gardening – regional profile of home delivery shoppers 2006 98
Table 18: Electricals – regional profile of home delivery shoppers 2006 108
Table 19: Food & grocery – regional profile of home delivery shoppers 2006 116
Table 20: Furniture & floorcoverings – regional profile of home delivery shoppers 2006 124
Table 21: Gifts – regional profile of home delivery shoppers 2006 132
Table 22: Health & beauty – regional profile of home delivery shoppers 2006 140
Table 23: Homewares – regional profile of home delivery shoppers 2006 148
Table 24: Music & video – regional profile of home delivery shoppers 2006 156
Table 25: Summary of purchase motivator, method and main user by sector 2006 163
Table 26: Issues, solutions and implications for retailers operating in the home delivery market 2007 169
Table 27: Fulfilment operator service proposition summary 2007 171
Table 28: iForce company overview 2007 172
Table 29: Metapack company overview 2007 173
Table 30: Home Delivery Network company overview 2007 175
Table 31: Parcelnet company overview 2007 176
Table 32: Zendor company overview 2007 178
Table 33: Christian Salvesen company overview 2007 180
Table 34: DHL Exel Supply Chain company overview 2007 182
Table 35: Unipart Logistics company overview 2007 183
Table 36: Amtrak company overview 2007 185
Table 37: Business Post Group company overview 2007 186
Table 38: Parceline (Geopost) company overview 2007 187
Table 39: Royal Mail/Parcelforce company overview 2007 188
Table 40: LYNX Express company overview 2007 190
Table 41: TNT Express company overview 2007 191
Table 42: Unattended delivery solutions 2007 193

LIST OF FIGURES
Figure 1: Home delivery report structure 2007 20
Figure 2: Home delivery purchase process 2007 21
Figure 3: Home delivery process 2007 22
Figure 4: Home delivery market growth 2001-2006 24
Figure 5: Home delivery channels sales breakdown % 1996-2006 27
Figure 6: Home delivery market growth by channel 2006 on 2005 28
Figure 7: Reconciliation of mail order, e-retail, TV shopping and home delivery markets 2006 29
Figure 8: Sector shares of home delivery market 2001 and 2006 31
Figure 9: Percentage of each demographic group using home delivery in the past 12 months 2003-2006 39
Figure 10: Demographic profile of home delivery customer 2006 40
Figure 11: Home delivery household penetration % by working status and income group 2006 41
Figure 12: Home delivery household penetration % by ACORN group 2006 41
Figure 13: Users of home delivery – penetration by size of household 2004-2006 42
Figure 14: Users of home delivery – penetration by type of household 2004-2006 42
Figure 15: Percentage of daily newspaper readers using home delivery 2006 45
Figure 16: Percentage of Sunday newspaper readers using home delivery 2006 47
Figure 17: Average number of home deliveries per year by sector 2006 49
Figure 18: Frequency of home deliveries by sector 2006 50
Figure 19: Top 20 retailers used for home delivery – % of shoppers mentioning 2005 & 2006 54
Figure 20: Retailers used for home delivery – percentage point change 2006 on 2005 55
Figure 21: Top reasons for home delivery 2004-2006 59
Figure 22: Ranking by importance of motivation for delivery by sector 2006 61
Figure 23: Ordering media for home delivery 2003-2006 62
Figure 24: Level of consumer satisfaction/dissatisfaction across all delivery criteria 2003-2006 67
Figure 25: Attitudes towards pricing and delivery 2006 73
Figure 26: If delivery could not be made to your home, where would you like it to go? 2003-2006 75
Figure 27: Books – home delivery shopper base 2005-2006 77
Figure 28: Books – socio-demographic profile of home delivery customer base 2006 78
Figure 29: Books – home delivery household penetration % by working status and income group 2006 80
Figure 30: Books – home delivery household penetration % by ACORN group 2006 81
Figure 31: Books – home delivery household profile % by lifestage 2006 81
Figure 32: Books – ordering media used for home delivery 2006 82
Figure 33: Books – leading reasons for using home delivery 2006 83
Figure 34: Books – leading retailers used for home delivery 2006 84
Figure 35: Clothing & footwear – home delivery shopper base 2003-2006 85
Figure 36: Clothing & footwear – socio-demographic profile of home delivery customer base 2006 86
Figure 37: Clothing & footwear – home delivery household penetration % by working status and income group 2006 88
Figure 38: Clothing & footwear – home delivery household penetration % by ACORN group 2006 89
Figure 39: Clothing & footwear – home delivery household profile % by lifestage 2006 90
Figure 40: Clothing & footwear – ordering media used for home delivery 2006 91
Figure 41: Clothing & footwear – leading reasons for using home delivery 2006 92
Figure 42: Clothing & footwear – leading retailers used for home delivery 2006 94
Figure 43: DIY & gardening– home delivery shopper base 2003-2006 96
Figure 44: DIY & gardening – socio-demographic profile of home delivery customer base 2006 97
Figure 45: DIY & gardening – home delivery household penetration % by working status and income group 2006 99
Figure 46: DIY & gardening – home delivery household penetration % by ACORN group 2006 99
Figure 47: DIY & gardening – home delivery household profile % by lifestage 2006 100
Figure 48: DIY & gardening – ordering media used for home delivery 2006 101
Figure 49: DIY & gardening – leading reasons for using home delivery 2006 103
Figure 50: DIY & gardening – leading retailers used for home delivery 2006 104
Figure 51: Electricals – home delivery shopper base 2003-2006 106
Figure 52: Electricals – socio-demographic profile of home delivery customer base 2006 107
Figure 53: Electricals – home delivery household penetration % by working status and income group 2006 109
Figure 54: Electricals – home delivery household penetration % ACORN group 2006 109
Figure 55: Electricals – home delivery household profile % by lifestage 2006 110
Figure 56: Electricals – ordering media used for home delivery 2006 111
Figure 57: Electricals – leading reasons for using home delivery 2006 112
Figure 58: Electricals – leading retailers used for home delivery 2006 113
Figure 59: Food & grocery – home delivery shopper base 2003-2006 114
Figure 60: Food & grocery – socio-demographic profile of home delivery customer base (% of shoppers) 2006 115
Figure 61: Food & grocery – home delivery household penetration % by working status and income group 2006 117
Figure 62: Food & grocery – home delivery household penetration % by ACORN group 2006 117
Figure 63: Food & grocery – home delivery household profile % by household lifestage 2006 118
Figure 64: Food & grocery – ordering media used for home delivery 2006 119
Figure 65: Food & grocery – leading reasons for using home delivery 2006 120
Figure 66: Food & grocery – leading retailers used for home delivery 2006 121
Figure 67: Furniture & floorcoverings – home delivery shopper base 2003-2006 122
Figure 68: Furniture & floorcoverings – socio-demographic profile of home delivery customer base (% of shoppers) 2006 123
Figure 69: Furniture & floorcoverings – home delivery household penetration % by working status and income group 2006 125
Figure 70: Furniture & floorcoverings – home delivery household penetration % by ACORN group 2006 125
Figure 71: Furniture & floorcoverings – home delivery household profile % by household lifestage 2006 126
Figure 72: Furniture & floorcoverings – ordering media used for home delivery 2006 127
Figure 73: Furniture & floorcoverings – leading reasons for using home delivery 2006 128
Figure 74: Furniture & floorcoverings – leading retailers used for home delivery 2006 129
Figure 75: Gifts – home delivery shopper base 2003-2006 130
Figure 76: Gifts – socio-demographic profile of home delivery customer base (% of shoppers) 2006 131
Figure 77: Gifts – home delivery household penetration % by working status and income group 2006 133
Figure 78: Gifts – home delivery household penetration % by ACORN group 2006 133
Figure 79: Gifts – home delivery household profile % by household lifestage 2006 134
Figure 80: Gifts – ordering media used for home delivery 2006 135
Figure 81: Gifts – leading reasons for using home delivery 2006 136
Figure 82: Gifts – leading retailers used for home delivery 2006 137
Figure 83: Health & beauty – home delivery shopper base 2003-2006 138
Figure 84: Health & beauty – socio-demographic profile of home delivery customer base (% of shoppers) 2006 139
Figure 85: Health & beauty – home delivery household penetration % by working status and income group 2006 141
Figure 86: Health & beauty – home delivery household penetration % by ACORN group 2006 141
Figure 87: Health & beauty – home delivery household profile % by lifestage 2006 142
Figure 88: Health & beauty – ordering media used for home delivery 2006 143
Figure 89: Health & beauty – leading reasons for using home delivery 2006 144
Figure 90: Health & beauty – leading retailers used for home delivery 2006 145
Figure 91: Homewares – home delivery shopper base 2003-2006 146
Figure 92: Homewares – socio-demographic profile of home delivery customer base 2006 147
Figure 93: Homewares – home delivery household penetration % by working status and income group 2006 149
Figure 94: Homewares – home delivery household penetration % by ACORN group 2006 149
Figure 95: Homewares – home delivery household profile % by household lifestage 2006 150
Figure 96: Homewares – ordering media used for home delivery 2006 151
Figure 97: Homewares – leading reasons for using home delivery 2006 152
Figure 98: Homewares – leading retailers used for home delivery 2006 153
Figure 99: Music & video – home delivery shopper base 2005-2006 154
Figure 100: Music & video – socio-demographic profile of home delivery customer base 2006 155
Figure 101: Music & video – home delivery household penetration % by working status and income group 2006 157
Figure 102: Music & video – home delivery household penetration % by ACORN group 2006 157
Figure 103: Music & video – home delivery household profile % by lifestage 2006 158
Figure 104: Music & video – ordering media used for home delivery 2006 159
Figure 105: Music & video – leading reasons for using home delivery 2006 160
Figure 106: Music & video – leading retailers used for home delivery 2006 161
Figure 107: Fulfilment and delivery options in the home delivery process 2007 162
Figure 108: Delivery & fulfilment issues for retailers 2007 166
Figure 109: Delivery & fulfilment solutions for retailers 2007 167
Figure 110: Delivery & fulfilment implications for retailers 2007 168