Insights / Delivering the Future: Rethinking the Last Mile of Retail

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Delivering the Future: Rethinking the Last Mile of Retail

Consider just a few examples of things that have gone from futuristic innovations to mundane aspects of everyday life: electric cars, internet streaming of music and films, vegan food as a mainstream choice, working from home and cash seeming an unusually quaint way of paying for anything. Over the past twenty years these things have gone from revolutionary to barely meriting a raised eyebrow. Shopping has been on this journey for some time and the question is, where could this lead us to next.

Two decades ago online shopping was almost a niche activity for technophiles, yet now, to the majority of us, it is second nature to buy anything from food and clothing through to white goods, furniture and cars online.

During the Covid epidemic, online sales in the UK alone increased by 74%, according to a GWP report, with two thirds of consumers stating that this pattern of purchasing is
now permanent. In fact, e-commerce is now represents 35% of all retail sales within the UK and was valued at £130 billion in 2024. The UK is now the third biggest online market globally and the largest in Europe.

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Image: Super Straho

The practical effects of this boom has resulted in a structural rethink in how products are delivered from retailer to customer, be they domestic or commercial.

However, looking to the future, there will be fundamental changes to the way home purchases are delivered, with consumers, businesses and legislators increasingly aligned on the need to reduce emissions, lower costs and meet rising expectations for speed and convenience.

No longer a science fiction dream, drones are already regularly being used in Africa and Australia to deliver supplies to isolated or difficult to access locations. It is likely
that the drone revolution will excel in rural areas across the globe where the established need for such a service is more apparent, creating a world in which AI and human controlled drones crossing the sky are ubiquitous, delivering loads weighing less than 2.2kg. Given the rapid advances in drone technology, any current limitations to load capacity, range and ability to fly in most weather conditions are unlikely to continue to prove an ongoing barrier to use.

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Image: Diana Macesanue

Particularly in urban areas where air space could quickly become congested, ground based delivery solutions may take the lead. Autonomous delivery robots, already in use in a few large corporate and educational campuses, are likely to be used to support or replace drones for delivery of larger items and mobile collection points will replace the need for multiple deliveries to one place.

Already, large corporates are running trials, with 10,000 drone deliveries from Walmart since 2021 and Amazon about to begin drone parcel deliveries in the UK and Italy.

For consumers these changes will bring a wealth of new possibilities and for brands, they will open up entirely new streams and challenges including immediate fulfilment, smaller more often, DTC orders and the immense challenge of maintaining brand connection with the consumer during the last mile, regardless of the delivery system.

Delivery is already a part of the brand experience but its significance is an opportunity not to be missed. Successful personalisation, branding and packaging of delivery, even
at mass scale, can create positive moments of elevation and connection to the brand narrative. We are delighted to be part of shaping that experience for the consumers of some of the most respected brands in the world.