Retail is changing fast and the last mile is where the action’s really heating up. The future isn’t one-size-fits-all. It’s about giving people real choice, letting them decide how, when and where they want to receive and return their orders.

What used to be a behind-the-scenes operation has taken centre stage. Whether it’s to-door or to an out-of-home point, such as a locker or PUDO point (pick-up/drop-off), delivery now plays a pivotal role in shaping customer experiences, building brand loyalty, and standing out in a competitive market. 

Increasingly, that means looking beyond the doorstep. Out-of-home (OOH) delivery options like lockers and PUDO points are booming — but they’re just one part of a bigger shift.

The key driver behind this shift? The move towards unified commerce. That’s the magic that happens when systems, channels, and data work in sync to create smoother operations and more seamless shopping experiences.   

Backed by new UK consumer data and market research, this report shows how modern delivery is evolving — and why offering a flexible mix of options is now essential for brands that want to stay competitive, connected, and carbon-conscious. 

What's inside...

1. Unlocking unified commerce: The crucial role of lockers in the last-mile.

Why lockers are now key players in retail's evolution

2. Five key themes driving locker adoption.

What's fuelling locker love?

3. Focal points and recommendations for retail brands.

Six ways lockers can boost your ops and bottom line

4. The last drop. Our final thoughts.

5. Take your checkout further.

Unlocking unified commerce - Exploring the crucial role of lockers in the last-mile

• The shift towards unified commerce.
• Lockers in action: why we’re using them and why they’re sticking around.
• So what’s driving locker use?

The shift towards unified commerce. With everyone juggling busier than ever lives, shoppers crave convenience, speed and ultimately more control.  

Consumer expectations around shopping experiences continue to rise. That’s why we’re seeing a big shift toward out-of-home delivery options, especially parcel lockers. They’re secure, super simple to use, and fit neatly into people’s daily routines – whether it’s picking up a parcel after work or dropping off a return during the grocery run. 

The UK retail scene has come a long way, moving from basic multichannel setups towards a more integrated model. Fully unified commerce isn’t the norm just yet, but it’s where things are heading. And delivery is right at the heart of that shift.

But what does this mean? Think of all your systems, data, and operations talking to each other in real time – no more silo and no more clunky workarounds. It’s a sleek, connected model that makes everything run smoother for both brands and customers.

In this new landscape, lockers aren’t just a nice-to-have. They’re essential. They bring the flexibility, sustainability, and customer-first benefits that modern retail demands. Simply put: they’re delivering the goods – in every sense.

With unified commerce setting the stage, retailers have a golden opportunity to refine and invest in their delivery strategies.

Our research shows that 40% of consumers – equivalent to around 21 million UK adults - have used a parcel locker in the last year, whether for collections, returns, or sending a parcel. Interestingly, 20% say they haven’t used lockers yet but would consider doing so, revealing untapped demand. 

Lockers in action: why we’re using them and why they’re sticking around

According to Retail Economics, in the last year alone, over 115 million retail parcels made their way through lockers in the UK. That’s a whole lot of boxes. And of those, 87 million were outbound deliveries (about 7% of all online orders), and 28 million were returns – making up a chunky 12% of all returns.

And here’s the best part: once people try lockers, they tend to stick with them. The ease and reliability win people over.

Among those who’ve used lockers in the past 12 months, the percentage of their online orders they choose to collect via lockers jumps from 7% to 17%. That’s more than double the average – and it puts lockers at the top of the list for out-of-home delivery options, beating click-and-collect and other PUDO (pick-up drop-off) spots.

What’s driving locker use?

We know that locker users are often heavy online shoppers who value convenience, flexibility, and security – and that combination ticks boxes for younger, tech-savvy customers. Think digital natives who want deliveries to fit their schedules, not the other way around.

But it’s not just a Gen Z and Millennial thing. As lockers pop up in more places and people become more familiar with how they work, they’re catching on with a wider crowd. Visibility and accessibility are making lockers a more mainstream choice.

For retailers, this shift is a big deal. Understanding what’s driving locker adoption – and who’s leading the charge – can help fine-tune delivery and returns strategies, creating slicker experiences and stronger ROI.

Here’s who’s leading the charge:

• 66% of Gen Z and 54% of Millennials used a parcel locker in the past year
• And they’re not just trying it out – they’re using them regularly, with 52% of Gen Z and 43% of Millennials using lockers at least once a month.

In short: lockers are quickly becoming a delivery habit, especially for younger shoppers who expect their retail experiences to be smart, smooth and on their terms.

Here’s the exciting part: we’re nowhere near peak locker use. Our research shows that every age group expects to use lockers more in the next 12 months. So this isn’t just a passing trend, it’s a growing movement. 

In the lead (again) are younger shoppers. A solid 39% of 25–34 year olds say they plan to use lockers even more this year. That’s a big hint for retailers: locker delivery isn’t just a nice bonus, it’s something customers expect to see at checkout.

If brands want to stay ahead, making lockers a visible, seamless part of the delivery experience is the way to go. Every consumer age group intends to use lockers more.

The secret to scaling:

Turns out, locker usage also varies by income. Our research shows a clear trend: the more people earn, the more they shop online – and the more they use lockers. Unsurprisingly, higher earners tend to order more often, spend more online and show the highest locker adoption – with 65% of the most affluent households having used lockers in the past year.  

However, this is where it gets really interesting: the biggest growth opportunity isn’t at the top – it’s in the middle. Those earning between £40k and £80k a year account for over a third of UK households. While locker usage in this group (44–48%) is trailing just behind the highest earners, this group is actually the most keen to use lockers more.

In fact, one in three say they plan to use lockers more often in the year ahead – more than any other group. Their scale and growing preference for secure, convenient delivery make them a key audience for retailers looking to increase adoption across the mainstream market.

Driving locker adoption

What’s behind the rise of delivery lockers? In this section, we break down the five key themes driving adoption. From their all-around appeal to their role in sustainable delivery and even re-commerce, lockers are proving they’re more than just a handy drop-off point – they’re reshaping how we think about deliveries.

• The universal appeal of lockers: who’s using them and why
• Seamless integration: lockers in the flow of daily life
• Rebalancing delivery: the rise of out-of-home solutions
• Lockers in the sustainable economy: reducing environmental footprint
• Lockers in the resale revolution: powering peer-to-peer transactions

The universal appeal of lockers: who’s using them and why

It’s true that lockers are particularly popular among Gen Z and Millennials, but they’re not the only ones. Locker use is catching on across the board, which means that it’s important for retailers to understand what’s motivating shoppers of all types.

It’s (still) all about convenience:

No surprise here: convenience remains the top reason people are choosing lockers. This year, 39% of users said it’s the main driver – up from 36% last year. And it makes sense. Lockers are quick, easy, and always open. No queues, no missed deliveries, no faffing around. Just scan a code, tap a screen, grab your parcel and go. Perfect for people with busy lives (which is most of us!).

But there’s more to the story. While convenience is king, other motivators are gaining ground too. Security is on more people’s radar. 15% said it’s a key reason they use lockers, up from 12% last year. Eco-friendliness is also climbing, with 12% now choosing lockers for perceived environmental reasons, doubling from last year.

The bottom line? Lockers aren’t just a handy option, they’re becoming a smart, sustainable and secure part of everyday life for a growing mix of shoppers.

The five locker user personas:

Our research identifies five distinct types of locker user groups, each with unique characteristics and motivations. These personas reflect a diverse mix of drivers, shaped by generational habits, income levels, work schedules, and accommodation factors.

For retailers, these insights are vital, pinpointing precisely when and where locker solutions can maximise impact within their target demographics.

Seamless integration: lockers in the flow of daily life

Lockers slot perfectly into everyday life. No special trips or detours needed. With clever placement in high-traffic, easy-to-reach spots, they blend effortlessly into people’s routines. And the numbers prove it: 88% of consumers say they use lockers as part of a set routine - not extra trips.

Supermarkets take the crown:

Top of the locker location leaderboard? Supermarkets, with 39% of consumers saying it’s their go-to spot. And you can see why – because grabbing a parcel while doing the weekly shop is a no-brainer.

Why this matters for retailers:

In a retail world where shoppers expect more and loyalty is hard to win, this everyday integration changes the game. For physical retailers, lockers give customers more reasons to visit stores, helping increase footfall and boost lifetime value. And they don’t just keep current shoppers happy, they help attract new ones. A well-placed locker could be the thing that gets someone through your doors for the first time.

So, yes – location really is everything.

Spotting patterns in time of use:

Locker usage varies by generation and time of day. Baby Boomers prefer mid-morning collections, Gen Z opts for lunchtime visits, and Millennials and Gen X typically use lockers during the afternoon or evening – often fitting locker visits around school runs, work commutes, or daily errands.

So what does this tell us? Lockers are becoming embedded into daily routines – not viewed as extra trips, but rather integrated alongside existing errands and tasks. Crucially, this habitual usage transforms lockers from occasional conveniences into reliable, repeatable touchpoints in people’s daily lives, leading to more usage and customer loyalty for brands.

For retailers with physical locations, lockers positioned near complementary retail destinations – such as supermarkets, shopping centres and transport hubs – can help drive footfall and extend customer engagement. But even for online-only retailers, offering delivery to these everyday locations still gives a big boost for convenience, embedding delivery into real-world routines.

Rebalancing delivery: the rise of out-of-home solutions

While home delivery remains the most popular option for online shoppers, evolving consumer expectations are driving demand for out-of-home options.

More than half of shoppers (53%) had some form of delivery challenge in the past year – think delays, parcels left in random places, or not having enough time to answer the door. 37% reported that their parcel went missing or showed up damaged.

Parcel lockers are emerging as a powerful complement to traditional home delivery, offering a secure, flexible and convenient alternative available 24/7.

In fact, of those who encountered home delivery issues in the last year, 68% turned to lockers in the same timeframe. Shoppers are looking for a wider range of delivery options that best fit their lifestyle. Convenience (46%) and locker availability (36%) were cited as the main motivators for increased future use, reinforcing the potential for retailers.

Lockers put control firmly back into consumers’ hands, allowing them to manage deliveries securely and conveniently. In general, once shoppers experience lockers, they tend to stick with them. They’re not here to replace home delivery entirely, but they do make a great sidekick. The key for retailers? Making sure those options are available to choose.

As it stands:

- 46% of shoppers bail on their carts at checkout because the delivery options don’t work for them.

- 41% say they’d rather choose a method that doesn’t mean waiting around at home.

- 40% would happily use lockers more often – if only they were available at checkout.

Offering parcel lockers as a checkout option isn’t just a nice-to-have, it’s a smart move. It boosts the overall experience, keeps customers happy and builds loyalty by giving people the flexibility and reliability they’re looking for.

Lockers in the sustainable economy: reducing environmental footprint

Over the last ten years, shoppers have gotten way more eco-conscious about what they buy – and now, that mindset is extending to how parcels get delivered too.

These days, nearly half (47%) of consumers see delivery options that cut down on the number of trips as a more sustainable choice. Final mile delivery is officially on the sustainability radar. By consolidating multiple orders into a single drop-off point, they reduce the miles driven – especially when you consider how often deliveries fail because people aren’t at home.

Parcel lockers are a smart way to cut down on delivery traffic. Compared to traditional to-door delivery, this consolidated approach helps lower fuel costs, cut emissions and reduce congestion in high-density areas.

Our research shows that locker users are especially conscious of the environment:

• 87% factor sustainability into their decision making, compared to 70% of all consumers. 
• 42% of locker users will choose a more environmentally friendly option when it doesn’t cost more, versus 31% of all consumers.
• 24% will choose an environmentally friendly delivery option even if it does cost more – double the number of total consumers that said this.

Retailers and brands have a real opportunity to position lockers as a greener, more shopper-friendly delivery choice at checkout.

As more people try to shop with the planet in mind, highlighting the perceived eco benefits of lockers – like fewer failed deliveries and consolidated drop-offs – can really hit the mark.

Lockers in the resale revolution: powering peer-to-peer transactions

The UK resale market is set to exceed £12 billion in sales by 2028, with fashion leading the way, accounting for around £4 in every £10 spent on used goods (Retail Economics 2024).

​The re-commerce market is booming, driven by changing consumer attitudes and the rise of digital resale platforms. And the good news is it’s projected to continue its rapid growth trajectory, and the locker network is a critical enabler.

For many resellers, lockers have become the go-to way to collect, send and return second-hand goods. With minimal buyer-seller interaction, no need for printed labels and the security offered by lockers, they provide a powerful solution. 

Digital platforms like Vinted have made second-hand shopping effortless and rewarding, transforming resale into a mainstream choice. Lockers complement this by streamlining the collection and return process, making them an essential part of modern re-commerce.

Our Second-Hand Seller persona (the second-largest cohort of locker users) further highlights how lockers support the fast-paced, frictionless nature of re-commerce.

The six key retail opportunities

Retail is evolving quickly, and there's plenty of opportunities for brands that stay ahead. Today's shoppers expect greater convenience and flexibility and retailers that adapt can gain a competitive advantage.

Parcel lockers are a smart and innovative solution: they improve customer experience, support sales growth, and make last-mile logistics; including deliveries and returns; more efficient, reliable, and cost-effective.

To help brands make the most of this shift, our research highlights six key areas to focus on:

1. Make life easier and build loyalty

The quick answer to keeping customers coming back? Make life easy for them.

• Highlight parcel lockers at checkout so they’re not overlooked 

• Let shoppers know how they work, where they are and why they’re awesome – think 24/7 access and secure pickups.  

• Make sure lockers are fully integrated at checkout, customers get accurate real-time notifications, and collections and returns stay fast and reliable.

• Track how often lockers are chosen, how satisfied customers are and how many come back again. 

That’s how you build lasting loyalty – by making every step of the journey simpler, safer, and more flexible. 

2. Give customers delivery options that work for them

Nearly half (46%) of shoppers leave their baskets at checkout when delivery doesn’t fit with their lifestyle.

The fix? Offer a mix of parcel lockers, click & collect, and home delivery. This way, you’re meeting shoppers where they’re at. Lockers bring undeniable flexibility, with fewer abandoned carts and happier customers.

3. Cut delivery costs, improve your margins

Last-mile delivery isn’t cheap – and it’s a growing headache for profitability.

Parcel lockers can help take off some of the pressure. By partnering with carriers that operate an extensive locker network, brands can enable more consolidated deliveries - helping to lower fuel usage, staffing costs and overall logistics spend. So you can safeguard margins and keep profits up.

4. Use customer insights to strengthen your locker and carrier partnerships

Great locker service comes from great teamwork – and great data. Share customer insights with your locker and delivery partners to help them put lockers where your customers want them most. Use feedback to spot where a bigger locker presence could really lift the customer experience.

Keep reviewing performance and customer satisfaction regularly, so you can work together to make locker services even more reliable, accessible and in tune with your wider customer experience strategy.

5. Share your sustainability story

Lockers aren’t just convenient – they’re kinder to the planet too.

For example, by helping reduce failed deliveries and vehicle miles. Retailers should work closely with their delivery partners to understand and communicate the impact. These sustainability benefits are powerful messaging tools that can connect with eco-conscious customers.

6. Explore locker opportunities within re-commerce

With more people buying second-hand, lockers are a great fit. They give buyers and sellers a secure and convenient way to swap items without needing to meet in person.

Retailers that currently operate or are considering entering re-commerce will undoubtedly benefit by integrating lockers into their offering. Lockers support the circular economy and open up fresh ways to connect with customers in this growing market.

The last drop. Our final thoughts.

Parcel lockers are no longer a nice-to-have — they’re a fundamental part of today’s delivery mix. What began as a niche convenience has become a mainstream expectation, driven by shoppers who want speed, flexibility and control over how they receive their orders and make returns.

But lockers are just one piece of the puzzle. The future of delivery is hybrid. For consumers, this means real choice: collect from a locker on their own time, pop into a local store, or have it dropped at their door. For retailers, it means increased efficiency, broader reach, and more sustainable operations.

Gen Z and digital-first shoppers are leading the shift, and as pre-loved platforms and re-commerce continues to grow, lockers are playing a bigger role in enabling frictionless, secure exchanges. Forward-thinking brands are already integrating these options into their checkout, customer journey and fulfilment strategies — and seeing the benefits in cost savings, customer satisfaction and long-term loyalty.

The message is clear: flexible delivery isn’t the future — it’s the new standard.

About InPost

InPost operates Europe’s largest out-of-home delivery network, with over 50,000 Automated Parcel Machines (APMs) and 33,000 out-of-home points across nine countries. In 2024, the company handled 1.1 billion parcels across these markets.

In the UK, Q1 2025 parcel volumes reached 24 million – a 39% year-on-year increase – driven by ongoing investment and integration with partners like Menzies and Yodel. The UK network now includes over 10,000 lockers and around 16,000 total out-of-home (OOH) locations.

About Retail Economics

Retail Economics is an independent economics research consultancy focused on the consumer and retail industry. We analyse the complex retail economic landscape and draw out actionable insight for our clients. Leveraging our own proprietary retail data and applying rigorous economic analysis, we transform information into points of action. 

Our service provides unbiased research and analysis on the key economic and social drivers behind the retail sector, helping to inform critical business decisions, giving you a competitive edge through deeper insights. 

Report authors:

Richard Lim - CEO, Retail Economics

Josh Holmes - Head of Research, Retail Economics

Methodology

This report draws insights from consumer surveys conducted in February 2025, involving 2,000 nationally representative UK households. Additional modelling and market sizing was carried out by Retail Economics using a combination of official statistics and proprietary retail industry data.