The effect of increased online retail sales on real estate

Published: May 26th, 2014
Written by: Editorial Team

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.

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