22 November 2023
Consumers have increasingly opted to shop online as the global coronavirus pandemic makes in-store shopping more dangerous – and in some cases, illegal. In Australia, online shopping grew by 75.8 percent in the first six months of the pandemic – putting immense strain on the postal service to deliver an unprecedented volume of packages, leading to delays in delivery times.
Consumers have increasingly opted to shop online as the global coronavirus pandemic makes in-store shopping more dangerous – and in some cases, illegal.
In Australia, online shopping grew by 75.8 percent in the first six months of the pandemic – putting immense strain on the postal service to deliver an unprecedented volume of packages, leading to delays in delivery times.
Meanwhile in the US, where health restrictions have not been as severe, online shopping has grown 30 percent to reach levels experts did not expect to see until 2022. At the same time, operational changes made by recently-appointed US postmaster general, Louis DeJoy, created a surge in postal delays between June and October – which were exacerbated by the COVID-19 pandemic.
Instead of relying on delivery, many US customers opted for click-and-collect options when making online purchases, with this segment experiencing a 60.4 percent increase through 2020. Demand for click and collect – both curbside and in-store – was so great at the beginning of the pandemic that use of the service between 1 April and 20 April this year was 208 percent higher than during the same period last year.
While the pandemic has generally hurt retailers it’s been good news for TZ Limited (ASX: TZL), an Australian-listed company that manufactures smart locking devices including click-and-collect parcel lockers.
TZ produces lockers used by Nike, USPS and several other major retailers and delivery services, which enable customers to collect pre-purchased goods from lockers around their city. The technology was developed in 2014 in conjunction with Singapore Post, and TZ Limited company chief executive Scott Beeton said interest in the smart lockers has surged during the pandemic.
“Because of COVID-related issues, our inbound inquiries have never been stronger,” he told guests of Reach Markets’ fortnightly The Insider webinar. He further added “It’s unbelievable how many inquiries we’re getting, and how many purchase orders are coming off the back of that.”
TZ Limited CEO Scott Beeton recently joined us for our fortnightly webcast ‘The Insider’. This article is a summary of the information he shared with us during the session. You can watch a full recording below. If you want to stay up to date on TZ Limited’s company activities you can register on their Investor Portal.
‘The Insider’ is a great way to hear directly from the CEOs of fast growing Australian businesses. Click here to book your spot if you would like to attend.
Reach Markets have been engaged by TZL to help manage their investor communications.