The retail industry is undergoing unprecedented changes as e-commerce growth, evolving consumer behaviors, and complex global supply chains reshape traditional business models. To maintain competitiveness, retailers must innovate operations and embrace digital transformation—a challenging process many struggle to execute effectively.
The Retail Transformation Challenge
Retailers face multiple pressure points:
- Surging online demand: Requires robust e-commerce platforms and efficient delivery networks
- Underperforming stores: Declining foot traffic and rising operational costs necessitate physical space reconfiguration
- Supply chain inefficiencies: Need for optimized logistics to reduce costs and improve delivery times
- Real estate strategy: Requires reassessment to align with new market realities
Introducing the Retail Industrial Task Force (RITF)
JLL's newly launched RITF service provides integrated real estate solutions by combining retail, industrial, and capital markets expertise. This cross-functional approach aims to streamline traditionally siloed services into a unified offering.
Core Service Offerings
The RITF provides seven key services to U.S. retailers, property owners, and investors:
1. Supply Chain Consulting
Comprehensive analysis of existing supply chains identifies bottlenecks and implements process improvements to enhance efficiency.
2. Retail & E-commerce Fulfillment
Strategic location selection for distribution centers combined with optimized warehousing and last-mile delivery solutions.
3. Urban Logistics
Development and operation of city-based fulfillment facilities to meet growing demand for rapid urban deliveries.
4. Retail Property Conversion
Evaluation and redevelopment of underutilized retail spaces into modern logistics facilities, creating value from existing assets.
5. Capital Markets Assessment
Asset valuation and investment portfolio optimization services to support strategic decision-making.
6. Industrial Diagnostics
Operational process reviews that identify inefficiencies in production, warehousing, and logistics workflows.
7. Demand Analytics System
Data-driven market intelligence informing real estate decisions regarding location selection, investments, and leasing strategies.
Strategic Advantages
JLL Industrial President Craig Meyer emphasized that RITF builds on over a decade of retail e-commerce fulfillment experience. The initiative's differentiated value includes:
- Integrated cross-disciplinary expertise
- Forward-looking market insights
- Customized solution development
- End-to-end service delivery
The pandemic accelerated retail's transformation, with many retailers now repurposing department stores into last-mile fulfillment centers. RITF's structure enables comprehensive support for these conversions by aligning real estate strategy with operational requirements.
Implementation Impact
The program helps stakeholders understand how shifting consumer preferences affect supply chains and retail real estate. Key benefits include:
- Identifying growth opportunities through strategic real estate planning
- Optimizing physical footprints by aligning stores with digital fulfillment networks
- Enabling urban fulfillment infrastructure development
- Facilitating supply chain integration for improved efficiency
Case Example
A national retailer with declining store performance engaged RITF for transformation support. The team identified supply chain inefficiencies, suboptimal real estate positioning, and an underperforming e-commerce platform. Solutions included:
- Supply chain digitization through shared information platforms
- Urban fulfillment center development near high-density markets
- Store conversions to click-and-collect locations
- E-commerce platform enhancements
These changes produced significant online sales growth and improved store traffic, demonstrating RITF's integrated approach.