Brighter than expected consumer spending – driven by record-breaking online shopping – is fuelling increased demand for large storage and distribution units, according to commercial property specialists Colliers International.
Head of the Bristol office Tim Davies said the surge in e-retailing had hit High Street footfall but the flipside was increased demand for out of town warehousing units to provide the storage and distribution facilities required by on-line retailers.
Major retailers are scouring the region for large units capable of supporting the dramatic increase in online shopping, with analysts predicting that £7.75bn will be spent online during December alone.
Tim Davies said: “Dramatically changing shopping habits have resulted in millions of people sitting at home to track down their Christmas gifts online rather than traipsing about the High Street.
“This has had an obvious knock on effect with High Street footfall suffering on the one hand and major retailers trying to track down adequate storage and distribution facilities to support their online operations on the other.
“We are seeing retailers returning to the industrial sector to ensure they have adequate logistical support for the unexpectedly steep surge in online business.”
He said the boom had originally been triggered by food retailers expanding their home delivery services – but had now spread to general retailers.
Online shopping analysts have reported a rise of almost 14 per cent on last year incorporating an even more dramatic 35 per cent increase in the number of people shopping for presents using mobile platforms.
Tim Davies said: “Contrary to most reports the public appears to be spending fairly freely, but it is the way they are spending which is changing out of all recognition.
The whole process is being driven by advances in technology, but however people are buying, retailers still require a good old warehouse to support the increase in business.”
