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The impact of Multi-Channel Retail on Logistics

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The growth in online retail sales will drive significant new demand for logistics real estate. 

This demand will require a variety of different types of logistics facilities, including fulfilment centres, sortation centres, cross-dock facilities and processing centres for returned items. There will also be growing demand for collection points, including lockers, to service click-and-collect. 

While traditional bricks and mortar retail will remain a more significant driver of aggregate logistics real estate demand than online in the medium-term, online will be a more dynamic driver of change. 

In mature retail markets, the growth in logistics real estate demand driven by e-fulfilment could be off-set by some weakening in demand related to supplying physical store portfolios. 

In less developed retail markets, logistics real estate demand will be driven by both an expanding retail property stock and growing online sales.

Source : Jones Lang LaSalle

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