E-commerce is dramatically reshaping the logistics space as retailers jostle to figure out how to tailor their logistics needs to ever-shifting consumer demand.
E-commerce is dramatically reshaping the logistics space as retailers jostle to figure out how to tailor their logistics needs to ever-shifting consumer demand.
Speaking at the PropertyEU logistics briefing on 17March at MIPIM, Kevin Mofid, head of logistics research at Savills said: 'As the CEO of UK retailer John Lewis said recently, "Those who win in logistics win in retail.” Disruption is the new normal in retail.'
Driving the logistics sector is online giant Amazon, which accounted for 10% of all logistics space in the UK last year. 'How other retailers react to what Amazon does will be crucial to the logistics space,' Mofid added.
And as Amazon speeds up the delivery process – its Prime Now service in the UK, and soon to be rolled out to Germany, promises delivery in just one hour – turnover, and the need for more logistics space, could rocket.
Increased online shopping has already led to a sharp uptick in the need for more warehouses. 'For every £1 bn spent online, 775,000 sq ft of logistics space is needed,' Mofid said.
More than 65% of investors in funds like logistics, according to Mofid, with almost 90% of fund of fund managers saying that logistics is their favourite sector.
'Logistics is a truly globalised asset class – that people want to access,' Mofid said.
