The growth of internet shopping is transforming the way goods are distributed to customers. With online sales predicted to almost double in the first half of this decade and expected to exceed 10% of all sales in Europe by 2016, e-tailing is creating new demands for warehouse space, including mega sites of over 1 million sqft, specialist distribution centres and smaller, local delivery depots, according to US-based financial and real estate services company Jones Lang LaSalle (JLL).
The rapid growth in ecommerce is changing the way goods are distributed and delivered by retailers. A new report by JLL has identified the following trends indicating this change: growing demand for mega e-fulfilment centres coupled with increasing demand for parcel hubs to handle delivery; increased use of robots in warehouses to pick goods, normally working alongside exiting staff rather than as a replacement; and greater use of ‘dark stores’ to service online food orders.
The JLL report indicates that European retailers will need up to 269 million sqft of additional logistics space over the next five years. Around 32 million sqft of specialised space is going to be needed for dedicated e-fulfilment centres, dealing solely with online demand. Another 236 million sqft is needed for store replenishment, though retailers are increasingly moving to a fully integrated ‘omni-channel’ customer offer, where customers buy in-store, online or via mobiles and either have their purchases delivered to their home or pick-up from stores or dedicated delivery centres.
There’s demand for massive e-fulfilment centres of over 1 million sqft – such as the 1.3 million sqft building by e-tailer Zalando in Erfurt, Germany. These giant centres will typically be built to suit facilities requiring significant plots of land and good access to a large labour supply due to have high staffing levels. JLL also predicts an increased use of robots, which in some cases have been able to improve the efficiency of order picking in warehouses by as much as 500%.
“While traditional retailing is still driving demand for retail infrastructure, the growth of online is fundamentally changing the size and shape of distribution centres and where they are located. Many retailers have outgrown their existing supply chain infrastructure and are having to work out the best logistics model to service the growth of multi-channel retailing. Their strategy will depend on the type of products, the volume of internet sales handled and the speed at which these are growing,” says Paul Betts, head of EMEA-logistics & industrial, Jones Lang LaSalle.
Majid Al Futtaim has made significant strides toward environmental, social, and corporateJuly 5, 2022 | By RetailME Bureau
Consumers, investors, and other key stakeholders of fashion retail are at aMay 11, 2022 | By Zubina Ahmed
The Frozen Chicken’ as Spinneys was fondly referred to back in the
Veppy.com, a Q-Commerce marketplace startup just announced their go live date in the
GMG, a global well-being company retailing, distributing, and manufacturing a portfolio of leading
Lulu Group International recently introduced the world’s first AI-powered Food Delivery Robot
Eid Al-Fitr is an occasion to gather with your friends and family
Leading retailer LuLu Group further strengthened its presence in the Emirate of
Jones the Grocer, the Australian gourmet grocer and café chain, announces further
What is a perfect healthy snack for Ramadan? An assortment of dried
With Ramadan almost at it’s first week, we are wondering where can
In spirit of the holy month, Amazon announced that it will contribute
As consumer behaviour is changing and the demand for delivery is expanding,
As part of the ‘Gift an Iftar’ campaign, Festival Plaza, part of
Amazon has announced the opening of its largest delivery station in Abu
India’s leading retailer Reliance has called off its $3.4 billion deal with
noon.com, the Middle East’s leading digital e-commerce platform, has opened its largest
Offering a compelling omnichannel experience used to be the bleeding edge of
It’s almost that time of the year when people all over the
In what has become an annual shopping spree, Dubai Duty Free will
UAE-based ENOC Group has introduced containerised fuel storage tanks designed specifically to meet
The non-oil trade between Saudi Arabia and Bahrain increased 43% to $688.4
The regional food and grocery delivery app Talabat has announced the expansion
The Dubai Airport Free Zone Authority (DAFZA) signs an MoU with Federal
Retail conglomerate, Landmark Group, expands its solar ambition by signing a 2.6
Supply chains are being diversified and regionalised by companies, stated CBRE, owing