Kirkland (NASDAQ: KIRK) shoppers who buy online and pick up in-store spend nearly twice as much money with the retailer online than those who have purchases shipped directly to their homes. In fact, more than 70 percent of the home decor retailer's online revenue, $5.4 million out of the $7.7 million in the second quarter, were fulfilled through the in-store pickup option.
"We've kind of steered it, but the customer is also responding to it," Kirkland's CFO Adam Holland told analysts in a call, Internet Retailer reported. "We definitely prefer the in-store delivery because it gets us another store visit, and we have evidence that once those customers go into the store, they are spending more and we're ringing another transaction."
Site visits over the quarter were up 40 percent and online sales were up 38 percent. In addition, the average online order value grew 2 percent. Overall, the retailer's sales grew $11.8 million during the quarter, and $2.7 million of that growth was in online transactions.
The big growth in online came during the same quarter that Kirkland reduced the number of items offered online by 25 percent. The company plans to increase the number of products available again by working with vendors that will drop ship orders placed through the Kirkland site.
BOPIS is becoming increasingly popular among consumers and, as a result, more and more retailers are offering the option for online purchases. Some of the bigger retail names implementing this option include Walmart (NYSE:WMT), Kohl's (NYSE:KSS), Ace Hardware and Staples (NASDAQ:SPLS).
According to the 2014 study, titled, "BOPIS and BISBO Will Propel Retail Into Orbit," incentives are a key driver, as 63 percent of shoppers buy online and pick up in-store at least a few times a year. As many as 82 percent of consumers would consider shopping this way if they received a $10 rebate on a $50 item.
-See this Internet Retailer article
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