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.
According to a report by the United Nations, the fashion industry accountsFebruary 18, 2021 | By Shruthi Nair
The jewellery making industry has been under tremendous scrutiny over the yearsFebruary 11, 2021 | By Shruthi Nair
UAE-based Carrefour will become the first retailer in the region to offer new levels
The Organic Farmers’ Market is back in Bay Avenue for its 12th
UAE-based Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah,
Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones
UAE-based Al Maya Supermarkets is hosting a two-week food festival at select
Locally-owned supermarket Spinneys has launched its ‘Power of Plants’ initiative in the
Carrefour UAE has launched “Cookit Yourself” — a curated recipe box created
UAE-based Al Islami Foods, one of the largest frozen food companies in
Marks & Spencer’s plant-based range now offers over 25 vegan products including meat-free
World’s largest fully integrated online brand in fresh fish and meat e-commerce
Homegrown, organic and plant milk company, Koita has announced its expansion into
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
IQ Fulfillment, the Middle East and North Africa (MENA) region’s first robotic
The demand for warehouses is growing exponentially in the UAE as the
During a recent conference held at the Fairmont Hotel in Riyadh, the
Global retailer Walmart will increase its investment in its supply chain logistics
US-based convenience store chain 7eleven has joined hands with FODEL to make