148 new buildings needed to satisfy UK's online demand
The rise on online demand will lead to retailers looking for even more space, as they are good at adapting to demand very swiftly. For Luke Buchholtz, Senior Director at CBRE Industrial and Logistics Project Management, the question is whether the UK has enough available buildings. If online hits 30% penetration by 2030 there will be an additional demand for 69 million sq. f. which is around 148 buildings. This scenario is for a 1% growth in demand each year.
Because consumers stockpiled in March retailers recorded their best sales on record for this time of year. This however, hit April’s demand and incoming stock levels piled up. Currently retailers are struggling to find free space where they can keep excessive stock.
Latest data show online sales in 2020 have reached a level of 32.8% in May.
More about the future of warehousing and where the UK#s market is heading HERE.