Cushman & Wakefield is expanding its newCommerce service into EMEA to help retail clients succeed as technology evolves, omni-channel shopping advances and the barriers between physical stores and digital platforms erode.
The newCommerce service brings together Cushman & Wakefield’s market-leading retail services platform with its logistics and supply chain solutions to enable established bricks-and-mortar retailers, internet-only brands, and companies in-between, to successfully navigate the new retail landscape.
newCommerce addresses specific retailer challenges and opportunities, including:
- how to compete or partner effectively with online-only retail giants
- optimising distribution networks for current and anticipated consumer needs
- integrating retail and logistics real estate strategies
- internet-only retailers considering building a physical store presence
- whether to lease or own retail and logistics assets
- whether to fulfil orders directly or use third-party logistics providers (3PLs)
- the future role for retail real estate such as shopping centres and retail parks in the logistics cycle
Initially launched in the US earlier in the year, the new service’s name acknowledges the fact that retail has been irrevocably changed by the rise of eCommerce. Online sales are expected to rise 94% by 2021 and Cushman & Wakefield analysis forecasts a 69% growth in European parcel volumes over the same period.
The global cost of last mile delivery is as high as EURO 70bn and forecast to grow 7-10% over the next five years. Significant investment will be required in online fulfilment, distribution centres and the technology necessary to facilitate next-day and same-day shipping. At the same time, however, nearly two-thirds (59%) of millennials say a nearby physical store presence is important to them when buying online.
Justin Taylor, Head of EMEA Retail, Cushman & Wakefield, said: “Shopping habits and consumer expectations have changed and companies across the retail spectrum are wrestling with new challenges and opportunities. Knowing you need to strike the right balance between your physical and online presence is one thing – identifying the best way to do it in order to give customers the best shopping experience is where newCommerce comes in. Underperforming stores, for example, may better serve retailers as online collect-and-return facilities as opposed to being closed outright.”
Robert Hall, Chair of EMEA Logistics & Industrial, Cushman & Wakefield, said: “Retail and logistics strategies are inextricably linked. By getting the maximum out of its infrastructure, a company can increase speed-to-market and reduce costs helping to meet the demands of customers and boosting their bottom line. The right strategy depends on the business but specialist insight and advice is key to charting a clear path ahead.”
Services include: market entry, store expansion, portfolio optimisation, and brand entry;
acquisition and disposal of properties; where to store inventory and how to best meet service expectations; portfolio evaluation and optimisation; site selection; construction; transaction management and support across a portfolio regionally, nationally or globally.