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How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
How are new shopping trends impacting your DC network?
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How are new shopping trends impacting your DC network?

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Shoppers are rewriting the rules on how and where they want to shop, many choosing to buy online. How are retailers able to meet their needs? Through a seamless omni-channel strategy that …

Shoppers are rewriting the rules on how and where they want to shop, many choosing to buy online. How are retailers able to meet their needs? Through a seamless omni-channel strategy that incorporates the right warehouse and distribution space. What should retailers know and how can they succeed to meet the consumer’s ever-increasing delivery demands?

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  • 1. How are new shopping trends impacting your DC network? Is your DC network omni-channel ready? JONES LANG LASALLE
  • 2. Shopping habits are changing 65% of U.S. shoppers research products on a PC before making a purchase in store 89% of consumers think it’s important for retailers to make cross-channel shopping easy in store JONES LANG LASALLE 40% of shoppers consult 3 or more channels before purchase Yet…7 of 10 retailers are still analyzing and defining their omni-channel strategy for 2015 to 2017 implementation
  • 3. Retailers are defining their omni-channel strategy… and omni-channel strategy is redefining retail real estate E-Commerce sales are growing faster than sales at brick-and-mortar stores JONES LANG LASALLE
  • 4. E-commerce sales growth vs. comparable-store sales growth among major brick & mortar retailers* *includes retailers with $25+ billion in 2012 total U.S. sales that have physical and e-tailing presences JONES LANG LASALLE Sources: NRF Stores & Internet Retailer
  • 5. Customers are in the driving seat – they choose how they want to shop 50 - 40 - 30 - 20 - 10 - BUY IN-STORE SHIP TO HOME BUY ONLINE PICK UP IN-STORE BUY IN-STORE CARRY HOME BUY ONLINE HOME DELIVERY % of respondents who are doing more of the following activities than a year ago JONES LANG LASALLE Source: Accenture
  • 6. What does an “Omni-channel” DC network look like? JONES LANG LASALLE ?
  • 7. The omni-channel ready DC: Yesterday vs. Tomorrow Traditional e-commerce model “Best of Class” omni-channel model 3PL @ DCs close to air hubs for next day or 2-day service Low cost workforce DCs 500k – 900k SF 5-10 year real estate lease JONES LANG LASALLE Same day delivery capability DCs close to ground sortation hubs Business and economic incentives Build-to-suit DC 1M+ SF Own or 15-year+ ‘credit’ lease
  • 8. Dock to Doorstep OR Ship to Store? The new DC approach Retailer NDC/RDC Shop 3PL Supplier goods warehouse Customer @ Retailer e-fulfillment center Local collection depot JONES LANG LASALLE Ground sort hub Local delivery depot
  • 9. What does your DC need? Building a better mousetrap for today’s omni-channel users JONES LANG LASALLE Source: Jones Lang LaSalle
  • 10. ‘Clicks’ are translating to ‘bricks’ U.S. e-commerce demand concentration Seattle/Puget Sound Minneapolis Boston Philadelphia Chicago Sacramento NorCal Salt Lake City San Joaquin Demand Los Angeles New Jersey Indianapolis Baltimore Cincinnati St. Louis Inland Empire Dallas/Fort Worth Richmond Charlotte Memphis Phoenix 200 to 999K sf Columbus Atlanta February 2014 1 to 2.0M sf 2.1 to 3M sf Houston Tampa Transactions 3.1M sf+ JONES LANG LASALLE 2013 - 200K sf+
  • 11. What’s next? Urban Logistics This year, omni-channel retailers will turn to Urban Logistics models to win the delivery war, facilitated by six newly-defined facilities … JONES LANG LASALLE
  • 12. E-commerce facility Main building attributes Main location attributions Mega e-fulfillment centers - Very large (50K sf to 1M sf+) - Close to parcel hub - High bay (15m) to accommodate mezzanine floors - Close to labor supply - Often cross-dock configuration - Does not need a traditional “center of gravity” location - High level of employee parking to accommodate full-time and seasonal staff Parcel hub/sortation center - High length to width ratio - Low site density - Cross-dock configuration with extensive loading for lorries - Center of gravity location to feed local parcel delivery centers in “hub and spoke” network - 360-degree circulation around the building - Highly automated internal operation involving sortation systems Parcel delivery centers and urban logistics depot - High length to width ratio - Low site density - Edge of major cities and urban areas for home delivery to collection points - Cross-dock configuration with extensive loading for lorries - 360-degree circulation around the building Return processing centers - Typically bespoke, depending on operation - Located to return items to e-fulfillment centers Dot.com warehouse for online food fulfillment - Specification reflects type of operation – e.g. degree of automation - Edge of major cities and urban areas where online food order volumes are highest - Bespoke loading provision for vans - Extensive yard area for trailer and van parking and ample parking for high number of staff JONES LANG LASALLE
  • 13. Is your Omni-channel Strategy Real Estate Ready? Real Estate’s role in retail success JONES LANG LASALLE

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