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Blurred lines: The merging of logisitics and retail

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Online sales across Europe have grown at a much faster pace than overall retail sales, increasing by 18.4% across Europe in 2015, compared to store-based sales, which declined by 1.4%.

This stark difference in respective growth rates across all European geographies provides an insight into the changing habits and behaviours of consumers. The typical consumer prioritises lower costs and greater convenience, and the online retail market, spearheaded by Amazon, Zalando and other dominant e-commerce retailers, has fulfilled this requirement.

As a consequence, retailers are being forced to re-evaluate their strategies, namely rebalancing their operations in order to maximise both their online and physical presence. This is where the logistics sector comes in. To accommodate consumers’ demand for flexibility and convenience, retailers are reorganising their supply chains, ensuring products are close to customers and can be delivered or accessed in ever-shorter times. The practicalities of this has had huge implications for retail and logistics, blurring the lines between the two sectors.

Source : AXA Real Estate

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Keywords : AXA Real Estate