Dive Brief:

• Home decor retailer Kirkland’s Inc. says shoppers who buy online and pick up in store spend almost twice as much while online as those opting for home delivery. 
• More than 70% of the Nashville, TN-based chain’s $7.7 million in online sales for the second quarter resulted from orders picked up in store. 
• Kirkland’s has encouraged customers to use in-store pickup after seeing evidence that such shoppers buy more during their visits. 

Dive Insight:

Kirkland’s Inc. found that customers who opt to pick up their online orders spend almost twice as much as those who request home delivery. While online sales represent a small portion (6.7%) of the home retailer’s overall revenues, site visits jumped 40% in the second quarter of 2015 compared to the second quarter of 2014, and online sales were up 38% to $7.7 million.

Part of Kirkland’s success in offering in-store pickup may lie in the streamlining of its inventory. The chain has cut the number of items available for purchase online by about one-quarter in the last year, and having fewer products often helps stores execute in-store pickup more successfully by guaranteeing that most items are in stock. Kirkland’s plans to add more items over time by working with third-party vendors.

Comparable-store sales growth including e-commerce was 6.7% in the second quarter, accelerating from last year’s 3.3%—and perhaps indicating that impulse buying may be adding to Kirkland’s overall take during customer pickups. To encourage additional sales from the 40% of customers who spend more in-store, retailers should position add-on items near the checkout or pickup desk.