Fast Fulfilment Options Drive Growth and Raise Questions
- Next-day services for online orders hit record levels in May
- Online retail parcel delivery order volumes increased by 14.8% year-on-year in May
- 37% of UK delivered orders used next-day and specified-day services
- On-time delivery performance dropped to its lowest May level (88%) in the history of the Index
- Average basket values increased by £62 year-on-year in May
Next-day and specified-day services for online orders reached record levels in May, accounting for 37% of UK delivered orders, according to the IMRG MetaPack UK Delivery Index. Online retail parcel delivery order volumes increased by 14.8% year-on-year during the same period. This growth, combined with strong volume increases, is likely responsible for a drop in on-time delivery performance, which reached its lowest May level in the Index’s history (88%). The percentage of deliveries arriving on time fell below 90% for the first time in May. Average basket values also rose by £62 year-on-year. Andy Mulcahy, IMRG’s strategy and insight director, commented that while customers have consistently preferred two-day delivery, industry expectations are changing due to technological advancements. He questioned how many ‘genuine’ next-day deliveries fail and how many orders are delivered next-day when the customer doesn’t expect it.
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reliable source (IMRG MetaPack UK Delivery Index) and discusses relevant data on online retail parcel delivery order volumes and on-time delivery performance. It also includes expert opinions from Andy Mulcahy, strategy and insight director at IMRG, which adds value to the discussion. However, it could be improved by providing more context about the royal wedding’s impact on shopping behavior and clarifying what is meant by ‘premium services’.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in next-day and specified-day services for online orders in the UK and their impact on delivery performance. It also includes insights from an industry expert, but it could benefit from more analysis of long-term trends or consequences of these changes.
Financial Relevance: Yes
Financial Markets Impacted: Online retailers, delivery companies
Financial Rating Justification: The article discusses online retail and parcel delivery services, which are financial topics as they involve transactions and businesses. The impact on financial markets could be through the performance of these companies and their stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event in the text. The article discusses the increase in online order volumes and the impact on delivery performance, but it does not describe any major disruption or crisis.
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