Retailers could lose a quarter of customers to late deliveries this holiday season

AUSTRALIA, 3^rd DECEMBER: Loqate, a GBG (AIM: GBG) location intelligence solution, has released new data showing more than one in four (27%) of Australians would not purchase from a retailer again if a package was not delivered in time for the holidays. Consumers cited damaged trust (15%) and retailers being responsible for delivery timeliness (12%) as the main reasons.

Despite various reports and forecasts of potential delivery delays and supply chain disruptions leading up to Christmas, 66% of Australians prefer home delivery for their online holiday season purchases, significantly more than those preferring click & collect (24%) or using a pick-up point from a logistics provider (5%).

Many consumers have already begun their shopping to mitigate potential delivery delays. More than a quarter (27%) started their holiday shopping in October, 28% planned to start their gift purchases in November, and 30% will be rushing for presents from the start of December to Christmas Eve.

Carol Chris, Regional General Manager for GBG in ANZ commented, “Retailers and online merchants need to recognise that a significant portion of online shoppers will not show leniency if their customer experience is sub-par. Delivering secure and frictionless customer experiences at the checkout requires having reliable technology in place that accurately processes purchases and customer information.”

The data highlights consumers will maintain a measured approach to online shopping, though overall consumer confidence is high. This year, despite the ongoing pandemic, 73% of Australians plan to spend as much or more this holiday season in comparison to pre-COVID. A quarter (23%) plan to spend between $251 and 500 in total on gifts this year, and a further quarter (25%) have budgeted between $501 and $1,000.

Chris continued, “The ongoing impacts of the pandemic have not deterred Australians from wanting to ensure this time of year remains the biggest and busiest for their online shopping and holiday gifting needs. As retailers continue their digital transformation journeys to keep up with customer expectations, our Loqate Address solutions have been specifically designed to enable merchants to deliver exceptional experiences to every customer, wherever they are located, by being powered by the most accurate global and regional location data.”

More key findings from the survey include:

• Consumers will be most influenced to shop more by sales, promotions and discounts (62%), free shipping (53%), and rewards/loyalty programs (36%).
• Post-pandemic, 61% intend to continue the habit generated during the pandemic of focusing on purchasing more essential products.
• 48% of Australians do not plan to travel this holiday season, 16% have travel booked within their state, and 24% intend to travel domestically.

About GBG:

GBG offers a range of solutions that help organisations quickly validate and verify the identity and location of their customers. Our market-leading technology, data and expertise help our customers improve digital access, deliver a seamless experience and establish trust so that they can transact quickly, safely and securely with their customers online.

Headquartered in the UK and with over 1,000 team members across 16 countries, we work with 20,000 customers in over 70 countries. Some of the world's best-known businesses rely on GBG to provide digital services and keep the economy moving, from US e-commerce giants to Asia's biggest banks and European household brands.

To find out more about how we help our clients establish trust with their customers, visit www.gbgplc.com/apac, follow us on Twitter @gbgplc or LinkedIn.

Research methodology:

PureProfile, on behalf of GBG, surveyed 1,028 Australian consumers in November 2021, to understand the impact of the COVID-19 pandemic on consumers’ shopping plans and behaviour for this year’s holiday shopping season.