Whichwarehouse can satisfy online retailers demand for more warehouse space

The Daily Telegraph reports that one in every five pounds spent in UK shops is now online.

New data from the Office for National Statistics (ONS) shows online sales rose by 15.3 per cent over the past year and now make up a record high of 18.2 per cent of all retail sales. This is up from 2013 when one pound in every ten was spent online. Katie Morley, the Consumer Affairs Editor emphasises that:

“In particular shoppers are avoiding ‘dusty old department stores’ and shopping on their computers and phones instead, experts said, as they saw online sales rise by over a third (35 per cent) in the year to July 2018.”

The leading global digital marketing company ‘eMarketer’ provides insights into the digital ecommerce marketing world. They say that despite the uncertain economic climate, the retail market in the UK continues to grow, driven mainly by mobile commerce. eMarketer estimates UK retail ecommerce sales will rise by 14.2% between 2017 and 2021, when purchases made online via mobile devices will make up well over one-tenth (13.4%) of total retail sales.

Total retail sales in the UK are expected to increase by 4.2% in 2017 to £433.07 billion ($584.52 billion). eMarketer warns that growth may slow down in 2018/19, as consumers become more cautious of their spending ahead of the anticipated Brexit deal with the EU. However, they confidently predict that:

“Ecommerce continues to be the biggest driver of retail sales growth in the UK, and it has remained relatively unaffected by economic uncertainty. In 2018, eMarketer estimates, retail ecommerce sales will reach £93.82 billion ($126.64 billion), eclipsing one-fifth of total retail sales for the first time. By 2021, that figure will reach over one-quarter of the total.”

Earlier this year in August the BBC reported that approximately 235 million square feet of warehouse space was leased or purchased between 2007 and March 2018 – equivalent to more than 3,000 Wembley Stadiums. That figure is up from about 130 million square feet in the previous decade. According to CBRE, the world’s largest commercial real estate services and investment firm, 60% of the all that space is now used by retailers. Ten years ago, retailers accounted for about a third of the space.

“Demand has been unprecedented,” said Andrew Marston, who researches UK industrial and logistics property at CBRE, which compiled the figures for the BBC.

Andrew added that, “Growth has come from online retailers, a number of which have been rapidly expanding their distribution networks …” and that, “Discount grocery chains such as Lidl and Aldi have also played their part.”

In addition, warehousing space for advanced and automated manufacturing, particularly in the automotive supply chain, has taken up space.

One region cashing in on the opportunity is the East Midlands. The arteries of major motorways and rail connections run through Northamptonshire, Leicestershire and Derbyshire. As a result, it’s rebranding itself the “Golden Triangle” of logistics. The region has mass appeal because goods can reach 90% of the population in England and Wales within four hours. Marks and Spencer sounded the starting pistol for the area in 2014 with its £200m fulfilment centre at Castle Donington. A little further south, Magna Park near Lutterworth is home to Disney and Asda. Tesco has a huge operation at Daventry International Rail Freight Terminal (Dirft). DHL Express has invested more than £150m in its site in the East Midlands to make it its biggest UK operation. About 900 staff work all night long to process 190,000 packages and parcels for international businesses.

“The pace of change is incredible,” says chief information officer James Holmes. “A few years ago, we would not have seen any online shipping coming through here. But now 60% of all volume is e-commerce. That’s what the future is.”

What does this mean for the warehouse industry? Obviously, the unstoppable rise of online shopping has led to a surge in demand for warehouse space. Over 12 million square feet of logistics properties, typically used for storage and distribution, were let in the first six months of the year. Property agent Jones Lang LaSalle Inc., the American professional services and investment management company, said that the take-up figure was 38% higher than a year earlier and a 90% jump on the prior six months.

How does a retailer deliver ecommerce fulfilment and locate these warehousing services?

Whichwarehouse will search and find shared-user warehouse space and properties from over 1,800 locations nationwide! All whichwarehouse locations offer associated logistics services, from basic pallet storage, through to end to end supply chain management. This includes receipt and dispatch, pick and pack, re-work activity, national transport, international freight and much, much more! Conversely, Whichwarehouse will find warehouse space for you. Is your warehouse or racking looking empty? Would you like to earn extra revenue by maximising your un-utilised space?

Whichwarehouse has 15 years of success which is built upon two key services:

Direct Advertising:

Whichwarehouse’s online advertising service uses multiple key industry terms to ensure its members appear frequently on Google and other key sites via whichwarehouse.com (within your chosen region).

Matching Service:

Whichwarehouse also offers a centrally managed warehouse matching service, allowing potential customers with storage enquiries to reach multiple warehouse providers via one point of contact.

Whicwarehouse have multiple membership packages on offer to suit all budgets.

In a world driven by technology, whichwarehouse are not just another dotcom, we are on hand to communicate and provide free value added support and advice.

Can’t find what you’re looking for? Contact Whichwarehouse direct on:

Email: [email protected] or Free Phone: 0800 1707 555

– Whichwarehouse –

Your First Port of Call for Logistics


Comments Closed

Comments are closed.

Copyright © Which Warehouse Blog