UK's John Lewis to charge for click & collect

LONDON, July 1 (Reuters) - Britain's biggest department store group, John Lewis, is to begin charging customers using click & collect for low value items, the first major UK retailer to do so, saying the current free service is unsustainable.

The employee-owned retailer said on Wednesday that from July 28 online orders for products costing less than 30 pounds, for delivery to John Lewis or sister firm's Waitrose stores, will incur a 2 pounds charge.

Orders over 30 pounds will remain free.

"The announcement reflects the unprecedented growth of online shopping across the whole retail industry and will ensure that the service is fit for the long term," John Lewis said.

The firm noted it currently processes over 6 million click & collect orders a year, compared to 350,000 in 2008, the year the service was launched.

Over the Christmas trading period the firm took more click & collect online orders than those which were for home delivery.

The popularity of the service has caused a logistical headache as the retailer has to move tens of thousands of parcels every night, from its distribution centre to over 360 collection points across the UK.

Analysts speculated that other retailers could also start charging for the service.

"Given their weight in the market their move is bound to be followed by others," said independent retail analyst Nick Bubb.

A spokesman for Marks & Spencer (Other OTC: MAKSF - news) , Britain's biggest clothing retailer, said the firm had no such plans at present.

(Editing by Elaine Hardcastle)