Posted on 5th September 2017
Online sales are not slowing down, where does this leave businesses with their warehouse storage?
It was another record year with Cyber weekend (25th November ? 28th November) clocking up 1.46 billion website visits, resulting in millions of pounds being spent with retailers offering discounts and promotions. Not only have we seen an increase during this period but overall this year?s online sales have increased significantly and will continue to do so ? Retail analyst Verdict Retail expects UK online shopping spend to rise from to ?43.3bn in 2015 to ?62.8bn in 2020.
Retailers are having to ensure they secure warehouse space in the right spots to keep up with delivery demands and promises to customers and because of this they are facing higher rents, because they have to.
Currently rent at SEGRO?s Park Royal in Acton, W3, home too many companies including John Lewis, stand at the highest in the country, around ?14 per sq. ft. Savills have forecast that this could potentially rise to more than ?16 per sq. ft. in 2019. Average rents in the North and Midlands stand at ?6 per sq. ft.
All that aside, with the growth of demand, how do businesses deal with the issue of space? One solution is to build up rather than out, the use of multi-storey warehouses is already working in Hong Kong and Paris ? although there are concerns with aesthetics it?s a strong solution to necessity. There has been a lot of interest around Hyde Parks underground car park and its potential for being one of the solutions for the logistical world ? it would become central London?s largest and most convenient warehouse storage facility
However things progress, it is essential for businesses to get as close to the customer as possible and is intrinsic to the online retailers survival in a very competitive market. Customer delays and incorrect orders are not tolerated in today?s world and result in heavy blows to business.
Storage systems from us can really help to maximise your current space to help with the growing demand for a business. Get in touch with our team of experts today on 0800 345 7088 or firstname.lastname@example.org
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