UK delivery services see increase in flexibility

A recent study from Micros Systems found U.K. retailers are offering customers more flexible delivery options, with almost 74 percent offering more than one delivery option and 61 percent providing a next-day service. In 2012, 19 percent of retailers have offered free delivery, up from 13 percent in 2011.

In addition, 34 percent of retailers offer Saturday delivery, up from 25 percent last year. Text messages are also being sent prior to delivery for 12 percent of retailers, an increase from 4 percent in 2011. Collect from store delivery services are offered by 21 percent of retailers, while 62 percent deliver overseas, compared with 58 percent last year.

One reason for the increase in delivery flexibility is a growing competition among cross-channel and online stores. Retail Gazette reported many online sellers in the U.K. are competing against the retail giant Amazon. Kantar Worldpanel's entertainment retail barometer found Amazon accounted for 22 percent of the overall market for videos, games and music as of December 26, 2011. HMV, on the other hand, controlled 17.5 percent.

"Amazon's strong performance is down to a number of factors: It is typically really competitive on price, has a wide range of products with no restriction on display space, and is known for its very good customer service," said Fiona Keenan, consumer insight director at Kantar Worldpanel.