- More and more consumers are doing their shopping online
- It's estimated by 2033, one in three dollars will be spent online
- This greatly increases the demand for strategically placed warehouse and distribution centres
The rise of e-commerce has changed the way consumers shop and has altered the retail industry.
And it shows no signs of slowing down.
According to a report from Cushman and Wakefield by 2033, one in three dollars will be spent online.
This figure is underscoring the urgency of retailers and distributors to secure strategic locations and establish a strong e-commerce presence.
Scarcity
Brokerage Industrial and Logistics National Director Fab Dalfonso says although retailers and third party logistics providers (3PLs) are keen to maintain higher stock levels to meet customer demands in a prompt manner, the availability of suitable warehouse spaces has become increasingly scarce.
“This has intensified the competition among occupiers for prime locations, resulting in a heightened demand for quality warehouses and distribution centres,” he said.
Moreover, delays in the construction of new facilities and a surge in lease renewals have further inflamed the competitiveness of the market.
Companies are fighting to secure the space to house their ever expanding inventory, and this trend is expected to continue into the foreseeable future.
An emerging hub
A significant development in Australian e-commerce is the increasing notoriety of Liverpool, a suburb located in South West Sydney.
Brokerage Industrial and Logistics Executive Kieran Tsipidis says Liverpool’s strategic location, coupled with its robust transportation infrastructure, makes it an attractive hub for businesses seeking to establish their distribution centres.
“Its proximity to major highways, airports and ports provides unrivalled connectivity, enabling efficient last mile logistics and improved supply chain management,” he said.
Operational efficiencies
The report stresses that supply chain managers are striving to optimise their operations to meet the demands of the e-commerce landscape.
Last mile logistics and reverse logistics in particular have become points for improvement, as businesses look for further tweaks to improve delivery speed, minimise costs, and provide superior customer experiences.
Dalfonso says one key example of a mile logistics hub is Moorebank, the neighbouring suburb of Liverpool.
“The Moorebank industrial market is evolving to cater to these demands and is poised to play pivotal role in the years to come,” he said.
Tsipidis says warehouses and distribution centres play a pivotal role in streamlining operations.
“By strategically locating their facilities, businesses can reduce deliver times, optimise routes, and implement efficient inventory management systems.
“This enables them to unlock operational efficiencies and meet the ever increasing expectations of online shoppers.”
He added that the impact of e-commerce on the demand for warehouses and distribution centres in Australia cannot be overstated; as online spending continues to rise, businesses must adapt to the changing retail landscape and secure strategic locations close to their customer base.
