Logistics, once seen as an essential but unglamorous part of retail, has in recent years become something of an industry poster child.

Logistics, once seen as an essential but unglamorous part of retail, has in recent years become something of an industry poster child.


The rise of multichannel has led to retailers competing hand over fist to offer shoppers ever greater convenience - later order cut-off times, faster delivery and the rise of click-and-collect.

There is just one problem with the sensational fulfilment services that retailers are offering consumers - they come at a punishing cost.

The pressure they put on margins means that many retailers struggle to make money from the shopping trend.

Similarly the carriers, themselves sometimes under pressure from retailers to keep their prices as low as possible, can struggle to turn a profit. The collapse of City Link last Christmas was the most obvious example.

Now John Lewis boss Andy Street has decided it is time to cry halt on what he sees as an unsustainable situation.
In a risky move, John Lewis is ending free click-and-collect for orders of less than £30. Shoppers will incur a £2 charge on goods below that value.

The impact of the decision will be keenly watched by the whole industry.

Labouring under the costs of fulfilment themselves, many retailers will hope the change of tack works and that they themselves can follow suit.

Others will see the shift as out of kilter with consumer habits and perhaps seek to make unfavourable comparisons with their own free services.

Like so much in retail, the consumer will be the ultimate arbiter. As they were trained to expect pre-Christmas discounting, they have also been trained to expect free fulfilment.

The success of the initiative will greatly depend on how well the reasons behind it are explained to shoppers. Even then, if John Lewis customers buy it, will consumers more generally?

Many retailers will hope so, because they cannot go on forever giving consumers something for nothing when it comes to fulfilment.