Retail supply chains at “inflection point” says JLL

LinkedIn +

JLL has warned that retail is at an “inflection point” where profitable retail can now only be achieved through efficient supply chain and logistics management.

The warning comes as JLL publishes Redefining Retail Logistics report.

Jon Sleeman, head of EMEA industrial and logistics research at JLL and co-author of the report, said: “We are at an inflection point where it is clear that profitable retail can now only be achieved through efficient supply chain and logistics management and the resulting consumer experience. Omni-channel is adding new layers of complexity to retail logistics and retailers have to rethink their strategies to optimise their real estate portfolios and engage customers across digital and physical channels.”

For retailers JLL warns that consumers want seamless in-store and online experiences, and adopting an end-to-end supply chain approach will ensure responsiveness and agility, enabling retailers to fulfil in-store and online purchases in the most efficient and profitable way.

However it also states that bricks and mortar stores will be key for omni-channel fulfilment, as the right space in the right location will continue to attract consumers and generate returns for retailers, with click-and-collect (and click-and-returns) playing a crucial role in retailers’ profitable fulfilment strategies.

Mike Bellhouse, head of EMEA retail, capital markets, at JLL, said that commercial and industrial property investors needed to understand that the relationship between retail and logistics is “becoming symbiotic”.

“Recognising this interdependency will allow investors to see that in an omni-channel world, the most successful retailers will be those that can optimise both their store and distribution networks,” he said.

By Liza Helps

Share this story: