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The effect of increased online retail sales on real estate



Online B2C (business to consumer) retail sales are set to increase by almost 75% by 2018. B2B (business to business) sales are double the amount of B2C and growing.
There is an increase of consumer products selling online.  Consumer packaged food businesses are moving their goods to online retail sales as the transition from traditional grocery and super stores transforms into private labels.  

How will these adjustments change the real estate business? Retail malls and stores are being impacted greatly by the growth of online sales.  This is evident with regular closing announcements.  The effects on fulfillment and distribution are affected significantly as the switch is made from traditional sales channels to online and direct sales.

The rapid change in business will require that more distribution and fulfillment centers be established with specific operating rules.  Malls may have to be converted into added space for other uses.  Companies will need to obtain space closer to their major customer markets to allow for faster delivery of goods.  Discount store growth will improve.


More about shopping malls in the USA



Jul 20, 2018, United Kingdom:
McArthurGlen confirmed the start of construction of the £160 million designer outlet near Birmingham.
Jul 6, 2018, China:
Alibaba Group debuted its first “FashionAI” concept store.
Jun 29, 2018, Slovenia:
Retail brand by Polish fashion chain LPP is set to open in at CityCenter Celje in Slovenia.
Jun 27, 2018, United Kingdom:
Independent food operator signed for the new dining quarter at The Grafton Cambridge.
Jun 26, 2018, Hungary:
ECE plans to develop a new shopping center in the Hungarian capital.
Jun 22, 2018, USA:
Mall of America owner is moving ahead, planning to bring the nation’s largest project to South Florida.
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