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Logistics space demand boosted by online sales

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Posted on 25/03/2013 by Wayne Brophy FCILT

The rise and rise of online shopping has led to an increase in demand for logistics space across Europe, according to a new report.

Research by Jones Lang LaSalle, published by Property Magazine International, revealed that European retailers will need to expand their logistics space by up to 25 million square metres over the next five years. Scotland is already home to a plethora of distribution centres and the trend is set to become more prevalent across the rest of the UK and the continent. The report highlighted the rising demand for online shopping with more people than ever before opting to do all their buying from the comfort of their own home.

E-commerce has been noted as one of the contributing factors to the downfall of major retailers such as HMV which have been struggling to keep up with the rapid rise in popularity of these online stores. Jones Lang LaSalle also outlined that internet retail is only going to become more prominent in the near future with the trend due to exceed ten per cent of all sales in Europe by 2016 and this has prompted the call for more distribution space and the potential for an increased amount of logistics jobs.

The organisation noted that the way goods are delivered is expected to change to coincide with the rise in internet shopping. Officials identified that there will be a growing demand for "mega e-fulfilment centres coupled with increasing demand for parcel hubs to handle deliveries". Robots will be used on a more regular basis in warehouses to pick out goods which will work alongside existing staff members.

Paul Betts, head of EMEA logistics and industrial at Jones Lang LaSalle, told the news provider: (del space) "Many retailers have outgrown their existing supply chain infrastructure and are having to work out the best logistics model to service the growth of multi-channel retailing. Their strategy will depend on the type of products, the volume of internet sales handled and the speed at which these are growing."

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