Will brick-and-mortar stores still dominate sales channels in the omnichannel mix, or does industrial property stand to reap most benefit from trend? The success of the omnichannel sales approach increasingly embraced by national retailers depends on brick-and-mortar stores providing a retail market presence, product showrooms and fulfillment capabilities. The Census Bureau of the Department of Commerce reported this week that total e-commerce sales for 2014 were $304.9 billion, an increase of 15.4% from 2013. E&Y projected that in five years’ time, brick-and-mortar stores could account for just 81% of sales down from 93% this past year.
Deutsch Asset & Wealth Management says that growth in e-commerce will likely provide demand for modern logistics space in more inner-ring locations going forward. It is expected that retail will continue to be hampered by minimal income growth.
Excerpts from the Article:
The Census Bureau of the Department of Commerce reported this week that total e-commerce sales for 2014 were $304.9 billion, an increase of 15.4% from 2013.
That kind of growth has placed supply chain (i.e., industrial properties) firmly on the front line of retailers’ growth strategies.
Individuals recently surveyed by the E&Y accounting firm seem to conclude that while brick-and-mortar is still the dominant sales channel for most retailers, the proportion is falling rapidly. In five years’ time, brick-and-mortar stores could account for just 81% of sales down from 93% this past year, E&Y projected.
Citation and link:
Heschmeyer, Mark. “In New Omnichannel Era, Investors Wonder Whether Retail or Industrial is Better Play.” SDBJ News., 18 Feb. 2015 Web. 24 Feb. 2015.
http://www.costar.com/News/Article/In-New-Omnichannel-Era-Investors-Wonder-Whether-Retail-or-Industrial-is-Better-Play/168947