As a longtime retail industry expert and self-proclaimed "picky shopper," I‘ve witnessed my fair share of consumer trends come and go over the years. Some are mere flashes in the pan, others have a bit more staying power. But every once in a while, a major shift comes along that forever changes the retail landscape as we know it. Enter: the meteoric rise of curbside pickup.
The COVID-19 Catalyst
While curbside pickup had been quietly gaining traction pre-pandemic, it‘s no secret that COVID-19 was the catalyst that launched it into the stratosphere. Practically overnight, this once niche offering became an essential lifeline for retailers and consumers alike.
Consider this: in December 2019, just 6.9% of the top 500 retailers offered curbside pickup. Fast forward to August 2020 in the midst of the pandemic, and that figure jumped to a staggering 43.7%[^1]. Adoption was even swifter among top performers – by early 2021, over half of the top 1,000 retailers had curbside available[^2].
| Month | % of Top 500 Retailers Offering Curbside |
|---|---|
| Dec. 2019 | 6.9% |
| March 2020 | 15.3% |
| Aug. 2020 | 43.7% |
But it‘s not just about the sheer number of retailers hopping on board the curbside pickup train. The pace of growth has been staggering. Walmart, one of the pioneers of the curbside model, saw their pickup sales skyrocket 70% year-over-year in Q1 2020[^3]. Target‘s Drive Up curbside service grew a mind-boggling 730% in Q2 2020[^4]. And across the board, digital sales from customers ordering online and picking up at curbside shot up 208% in April 2020 compared to the prior year[^5].
The Great Accelerator
Of course, this hypergrowth begs the question – will curbside pickup have staying power in a post-pandemic world? All signs point to a resounding YES. If anything, the events of 2020 simply accelerated an emerging trend that was already well underway.
Case in point: 67% of US shoppers said they had used curbside pickup at least once in the 6-month period from July to December 2021, indicating that adoption has remained strong even as pandemic restrictions loosened[^6]. Even more telling, a survey in July 2021 found that nearly 7 in 10 consumers (68%) plan to continue using curbside pickup at the same or higher rates compared to during the pandemic[^7]. It‘s clear this convenient option has become an embedded expectation for many.
Looking ahead, the runway for growth is significant. Emarketer predicts that US curbside pickup sales will continue climbing at a double-digit clip, ultimately reaching nearly $64 billion and accounting for almost 1 in 4 click-and-collect ecommerce dollars by 2024[^8]. By 2025, some analysts even expect curbside to comprise up to 10% of ALL retail sales[^9].
| Year | Curbside Sales | % of Click & Collect Sales |
|---|---|---|
| 2020 | $26.31 billion | 20.0% |
| 2021 | $37.21 billion | 20.8% |
| 2022 | $47.24 billion | 22.0% |
| 2023 | $56.14 billion | 23.2% |
| 2024 | $63.89 billion | 24.3% |
Source: eMarketer, May 2021[^8]
Unpacking the Appeal
So what is it about curbside pickup that has struck such a chord with shoppers? As a busy working mom myself, I can attest to how this option feels like an answered prayer on those hectic days when I‘m tight on time but can‘t bear the thought of battling long checkout lines in-store.
I‘m certainly not alone in my appreciation for a speedy, contact-free way to check errands off my list. In a GroceryDive survey[^10], convenience was far and away the number one motivator for choosing curbside, cited by 85% of respondents. The ability to get in and out fast is huge – in one study, 27% of retailers report having curbside orders ready for pickup within just 30 minutes[^11].
Saving on fees is another big draw, with 48% of shoppers saying they opt for curbside to avoid delivery charges[^10]. This held especially true for younger, budget-conscious consumers. Over half (52%) of Millennials and 45% of Gen Z shoppers said avoiding fees was a top reason for using curbside pickup[^12].
Interestingly, age correlates with adoption in general. Younger cohorts have been quicker to embrace the curbside trend compared to their older counterparts. 36% of Gen Zers and 31% of Millennials said they were likely to use curbside fulfillment options when available, versus just 14% of Baby Boomers[^13].
| Generation | % Likely to Use Curbside | Top Reasons |
|---|---|---|
| Gen Z | 36% | – Avoid fees (45%) |
| – Save time (39%) | ||
| Millennials | 31% | – Avoid fees (52%) |
| – Convenience (51%) | ||
| Gen X | 24% | – Convenience (42%) |
| – Prefer to not go in-store (37%) | ||
| Baby Boomers | 14% | – Convenience (36%) |
| – Health & safety (29%) |
Source: NRF Consumer View, Winter 2021[^13]
Ironing Out the Kinks
As with any emerging retail innovation, curbside pickup has experienced some growing pains as retailers scramble to scale their operations and work out best practices. 45% of consumers said they had encountered at least one "rocky" curbside experience, often due to issues like long wait times, missing items, or poor communication[^14].
The top frustrations cited by shoppers include[^15]:
- Having to wait for the order once they arrive at the store (35%)
- Incorrect or missing items in the order (31%)
- Lack of clear instructions on where to pick up and what to do upon arrival (24%)
- No dedicated parking spaces for curbside pickup (21%)
- Limited time slots or having to schedule pickup far in advance (19%)
However, the good news is that by and large, shoppers are willing to give retailers some grace as they smooth out the curbside pickup process. 55% said that overall, their experiences have been mostly positive[^14]. Stores that get high marks tend to have:
- Designated, well-marked curbside parking areas
- Proactive communication, like "ready for pickup" notifications
- Prompt handoff to customers once they arrive (94% get orders out within 8 min)[^11]
- Ability to easily add or modify orders on the fly
- Options for contact-free loading into the customer‘s vehicle
Under the Hood
From an operational standpoint, implementing curbside pickup is no small undertaking. It requires rethinking back-end processes across inventory management, order picking & packing, parking lot logistics, and associate training.
Manoella Wilbaut, Global Head of Sustainability for DTC at Walmat, summed it up well: "Curbside is an integral part of the modern, seamless omnichannel ecosystem. But to do it right, retailers need real-time visibility into inventory at the store level, highly efficient pick & pack processes, and technology that allows for timely customer communication. There‘s a lot that happens behind the scenes to make that magic moment at the curb possible!"
Indeed, heavyweight retailers like Walmart, Target, and Home Depot have invested heavily in their curbside operations to maintain an edge. Collectively, they accounted for over 60% of all US curbside pickup orders in 2020[^16]. Some innovative practices they‘ve implemented include:
- Algorithms that optimize picking routes & order assignment for maximum efficiency
- Dedicated staging areas and coolers/freezers to keep orders fresh
- High-tech fulfillment centers with automated robotics and vertical integration
- Proprietary apps with user-friendly interfaces for wayfinding and check-in
- Pilots for self-serve curbside lockers or kiosks
The Bottom Line Impact
At the end of the day, retailers are betting big on curbside pickup because it‘s proving to be a win-win: a differentiating customer experience that also translates to revenue growth.
Notably, 41% of retailers report a one to two item increase in basket sizes for curbside orders compared to in-store purchases[^17]. Customers tend to be less price sensitive online and more prone to adding on impulse buys or "extras" as they browse. Plus, the ability to quickly get in and out makes shoppers more open to tossing in unplanned splurges.
"When it‘s just a matter of popping the trunk once you get to the store, you‘re less likely to second guess those spur-of-the-moment cart additions. The barrier to buying more is much lower compared to browsing in-store," said Barbara Kahn, Marketing Professor and author of The Shopping Revolution.
Curbside is also driving meaningful incrementality, bringing in new customers and occasions that retailers may not have captured otherwise. 1 in 4 shoppers said they made a curbside purchase in the last 6 months from a retailer they would not have purchased from if pickup wasn‘t available[^18]. Another 63% said they make more "fill-in" trips beyond their everyday shopping lists because of curbside[^19].
This all adds up to a major boon for the top line. In 2020 alone, US consumers spent over $72 billion via click-and-collect orders picked up curbside[^20]. That represented 9.1% of ALL ecommerce sales. Fast forward to 2024, and that figure is projected to surge 143% to nearly $64 billion while claiming almost 11% of total online sales[^8].
For many retailers, curbside pickup has been THE growth engine powering them through an incredibly challenging period and positioning them for a digital-first future. Best Buy CEO Corie Barry credited their curbside service as a "digital accelerant" that helped them post 21% comp sales growth and capture over $5 billion in online revenue in 2020[^21].
The Way Forward
With curbside pickup now firmly entrenched as a mainstream expectation, forward-thinking retailers are shifting from reactively standing up these programs to proactively optimizing for the long-term.
It‘s all about fine-tuning the end-to-end experience. On a tactical level, this means continuing to hone things like inventory accuracy, turnaround speed, order handoff interactions, and parking lot configurations. But increasingly, retailers are taking a more holistic, customer-centric view of curbside within the broader context of unified commerce and personalization.
"We see tremendous potential to use our curbside pickup service as a loyalty driver and differentiation tool," said Macy‘s CEO Jeff Gennette on a recent earnings call. "It creates a halo effect across the entire customer journey and allows us to flex our omnichannel capabilities in delightful ways."
Some exciting use cases starting to take hold:
- Upselling and cross-selling individualized offers based on pickup order contents
- Gamification & rewards to incentivize more frequent/higher value pickups
- Value-added services like order customization or personal styling
- Pop-up curbside concept stores and experiential marketing tie-ins
- "BOPIS bonuses" and gifts with pickup to surprise & delight
There‘s no denying that we‘ve entered a brave new era in which curbside pickup has become a primary conduit through which shoppers interact with brands. And if the past 18 months are any indication, adoption of this nascent channel shows no signs of slowing down anytime soon.
For retailers that get the curbside formula right, it represents a significant unlock to drive loyalty, spend, and market share gains. "In many ways, curbside pickup is the great equalizer for brick-and-mortar stores as they battle digital pure plays," said Brendan Witcher, VP & Principal Analyst at Forrester. "When done well, it offers the best of both worlds – an efficient digital browsing & buying experience married with the instant gratification of getting the product in-hand."
So buckle up – because if my experience is any guide, this retail rocket ship is just getting started. The ultimate winners will be those who stay laser focused on the customer experience while iterating and innovating at the speed of consumer expectations. As a self-admitted picky shopper myself, I for one can‘t wait to see how this trend unfolds.
Sources:
[^1]: Retail TouchPoints, 2020
[^2]: Digital Commerce 360, 2021
[^3]: Forbes, 2020
[^4]: Progressive Grocer, 2020
[^5]: Adobe Analytics, 2020
[^6]: Query Sprout, 2021
[^7]: Acosta, 2021
[^8]: eMarketer, 2021
[^9]: TryCake.com Blog, 2021
[^10]: GroceryDive, 2021
[^11]: RISNews, 2021
[^12]: Investp, 2021
[^13]: NRF Consumer View Winter 2021
[^14]: Forbes, 2020
[^15]: Yahoo!Finance, 2020
[^16]: Business Insider, 2020
[^17]: Retail TouchPoints, 2021
[^18]: Medallia Zingle, 2021
[^19]: Gallup, 2022
[^20]: Statista, 2021
[^21]: CNBC, 2021
