This document discusses the impacts of e-commerce on the logistics industry. It finds that internet shopping has become an established habit, with over 70% of people between 16-65 shopping online. Retailers expect their online sales to double by 2014 and many see themselves becoming fully integrated multichannel retailers within two years. This growth in e-commerce will significantly increase demand for logistics space and facilities tailored for online order fulfillment, such as larger warehouses with greater mechanization and automation capabilities located closer to population centers. The roles of stores are also evolving to include order pickup and home delivery.

1. E-COMMERCE: IMPACTS AND
CONSEQUENCES FOR THE
LOGISTICS INDUSTRY
October 2012

2. INTERNET SHOPPING: AN ESTABLISHED HABIT
of 16-65 year olds use the internet to shop
browse for goods online

3. INTERNET SHOPPING: AN ESTABLISHED HABIT
People of all ages are comfortable with online
shopping
Men shop online twice as much as women
More high earners shop online than low
earners 61% vs. 44%

4. BUT NOT SPREAD EVENLY

5. RETAILERS ACTIVELY PURSUING MULTICHANNEL
Retailers expect the proportion of their overall sales
ordered online to double by 2014
63%

6. RETAILERS ACTIVELY PURSUING MULTICHANNEL
currently see themselves primarily as
70% “bricks and mortar” retailers
expect to be fully integrated multichannel
63% retailers in two years’ time
expect to need more shop space across
60% their network in two years’ time

7. FACTORS PREVENTING ONLINE SHOPPING
70%
GB
60%
France
50%
40% Germany
30% Italy
20% Spain
10%
Sweden
0%
Belgium
Source: CBRE

8. IS THIS HOW SUPPLY CHAINS WILL LOOK?
Manufacturer Importer
Manufacturer Importer
Parcel
Hub
Parcel
Hub
Regional
Regional Distribution
Distribution Centre Centre
Parcel E-commerce
Hub warehouse Local
Local warehouse
warehouse
Parcel
Hub
Store Store
Parcel
Hub
CUSTOMERS

9. RETAILER NEEDS OVER THE NEXT TWO YEARS ARISING
FROM THEIR MULTICHANNEL STRATEGY
100%
80%
60%
40%
20%
0%
Store Stockroom Space Local Warehousing Regional Distribution
Centres
Much more than now More than now About the same
Less than now Much less than now

10. THE ROLE OF THE STORE
41% 49%
Pick up from store and delivery to home/work will
be favoured equally

11. THE GROWING CONTRIBUTION OF E-RETAILING TO
LOGISTICS MARKETS
% OF LOGISTICS LEASING TRANSACTIONS DRIVEN BY E-RETAILING: UPPER LIMIT
70
60
50
40
30
20
10
0
Spain
Italy
Ireland
Russia
Germany
Poland
UK
France
Sweden
Netherlands
Past two years Next two years

12. WHAT DO LOGISTICS BUILDINGS NEED TO OFFER?
SPECIFIC FEATURES E-TAILERS REQUIRE FROM THEIR LOGISTICS BUILDING
France
Level of
Mechanisation Germany
Ireland
Process Capability
Italy
Netherlands
Location Russia
Poland
Specification Spain
Sweden
Size UK

13. NATURE OF CURRENT LOGISTICS DEVELOPMENT
FOR E-RETAILING
Some of
both
"Mixed
operation"
Dedicated
E-retailing

14. KEY ISSUES
 How will the growth of e-retailing in your company
affect the scale and nature of demand for logistics
space?
 What impacts do you expect in terms of building size,
location, function, specification, configuration etc?
 Can existing buildings/networks do the job? Or do
they need adapting, or introduction of new formats
(e-fulfilment centres; combination facilities;
“bolt-ons”)?

15. KEY ISSUES
 What issues are there in securing buildings suitable
for the logistics demands of e-retailing?
 Is there any impact from e-retailing for investors’ - or
developers’ - appetite for logistics?
 Importance of the “delivery experience” to customers:
what needs to happen to supply chains and logistics
to satisfy these aspirations?

16. Q&A