The world has changed dramatically since 2020 when the prediction that online retail would account for a quarter of all retail sales by 2025 was made, but Savills director Kevin Mofid points out that the characteristics that made online retail so popular are still pertinent. The forecasts are still true, but may take longer to achieve.
“I think the long-term trend, when it comes to convenience, when it comes to the level of choice and speed of delivery, the things that make online retail attractive in the first place, are still going to continue,” the head of EMEA industrial and logistics research explained.
In a conversation that followed Real Asset Media’s recent European Logistics Investment Briefing, staged live in London, he pointed out that companies like Amazon are still targeting new markets particularly in Europe.
“When Amazon chooses to enter those markets we see disruption, other occupiers upgrade their supply chains and begin to compete. I still think we will see a significant rise in the level of online retail across Europe but it may take us slightly longer to get there because of the economic volatility we are we are now faced with.”
He added: “If we see that level of online retail, that of course has an impact on the warehouse property market.”
Click on the video to watch the full interview or listen to the podcast below.