When consumers tap their screens, products travel thousands of miles to reach their doorsteps. Behind this seemingly simple process lies a fundamental transformation in retail. Traditional retailers must adapt to survive and thrive in this new landscape. CBRE has identified this shift and responded with comprehensive omnichannel real estate services designed to help retailers navigate the future.
CBRE: Pioneering Omnichannel Real Estate Solutions
As a global leader in commercial real estate services, CBRE understands the challenges of retail transformation. In response to e-commerce growth and changing consumer behavior, CBRE has developed omnichannel real estate services that help retailers optimize the integration of physical stores and digital channels while building efficient supply chain networks.
This comprehensive service covers every aspect from supply chain planning and warehouse labor analysis to store portfolio optimization and data mining, providing true end-to-end solutions. CBRE executives describe this new offering as a "concierge service," emphasizing its client-centric approach and customized solutions tailored to each retailer's specific needs.
The New Retail Reality: Omnichannel Integration
The retail industry is undergoing a profound transformation as the traditional store-first model gives way to omnichannel integration. This shift requires retailers to completely rethink their warehousing and logistics strategies to accommodate rapid e-commerce growth and increasingly diverse consumer demands.
Traditional warehouses designed for bulk storage and distribution must now evolve to handle high volumes of individual parcels requiring fast, accurate delivery to consumers. This fundamental difference impacts everything from warehouse location selection to facility layout and operations.
Modern warehouses must simultaneously manage store inventory, home delivery orders, and "buy online, pick up in store" transactions, significantly increasing operational complexity and placing greater demands on retail supply chains.
Case Studies: Emerging Trends in Warehouse Strategy
Three recent developments illustrate the growing importance of warehouse strategy in retail:
- Gap's Warehouse Consolidation: The apparel retailer announced plans to have all its warehouses serve both store and e-commerce orders by 2018, aiming to improve inventory efficiency, reduce delivery times, and lower operating costs.
- Walmart's Location Strategy Shift: The retail giant abandoned plans for a California warehouse, reflecting a reassessment of its location strategy and increased focus on e-commerce operations.
- Flexe's Next-Day Delivery Network: The warehouse leasing platform launched a next-day delivery service using its national network, addressing consumer demand for faster shipping while helping e-commerce businesses improve competitiveness.
These examples demonstrate how retailers are adapting their warehousing approaches to meet the challenges and opportunities of omnichannel commerce.
The Evolution of Warehouses: From Storage to Value Creation
In the omnichannel era, warehouses have transformed from simple storage facilities into critical value creation centers. Modern warehouses require several key characteristics:
- Strategic Location: Optimal placement considering transportation access, labor costs, and market coverage to minimize delivery times and maximize customer satisfaction.
- Operational Efficiency: Advanced technologies like automated sorting systems, intelligent inventory management, and real-time tracking to improve accuracy and reduce costs.
- Operational Flexibility: Ability to quickly adapt to changing market demands and seasonal fluctuations.
- Data-Driven Operations: Leveraging sales, inventory, and customer data to optimize performance and meet consumer expectations.
Building Omnichannel Supply Chains with CBRE
CBRE's omnichannel real estate services support retailers in developing comprehensive supply chain solutions:
- Strategic supply chain planning including optimal warehouse placement and inventory strategies
- Data-driven warehouse location analysis considering multiple market factors
- Efficient facility design optimizing layouts for automation and workflow
- Implementation of advanced warehouse management technologies
- Workforce optimization including recruitment, training, and productivity enhancement
- Performance analytics using operational data to improve decision-making
Adapting for Future Success
The omnichannel transformation requires retailers to fundamentally rethink their business models. CBRE's services provide critical support in developing efficient supply chains that improve operations, reduce costs, and enhance competitiveness.
As e-commerce continues growing and consumer expectations evolve, omnichannel real estate services will play an increasingly important role in retail success. CBRE's expertise, experience, and global network position it to lead this market transformation while helping retailers navigate the challenges of modern commerce.
Omnichannel real estate services represent more than just innovation in property – they're driving the fundamental evolution of retail. By enabling retailers to better adapt to market changes and improve operations, these services ultimately create better shopping experiences for consumers worldwide.