Shoppers are rewriting the rules on how and where they want to shop, many choosing to buy online. How are retailers able to meet their needs? Through a seamless omni-channel strategy that incorporates the right warehouse and distribution space. What should retailers know and how can they succeed to meet the consumer’s ever-increasing delivery demands? For more information, please visit: http://bit.ly/1kSU6wv

1. How are new shopping
trends impacting your
DC network?
Is your DC network omni-channel ready?
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2. Shopping habits are changing
65% of U.S. shoppers
research products on
a PC before making a
purchase in store
89% of consumers think
it’s important for retailers
to make cross-channel
shopping easy in store
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40% of shoppers
consult 3 or more
channels before
purchase
Yet…7 of 10 retailers are
still analyzing and
defining their omni-channel
strategy for 2015 to 2017
implementation

3. Retailers are defining their
omni-channel strategy…
and omni-channel strategy
is redefining retail real estate
E-Commerce sales are growing faster than
sales at brick-and-mortar stores
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4. E-commerce sales growth vs. comparable-store sales
growth among major brick & mortar retailers*
*includes retailers with $25+ billion in 2012 total U.S. sales that have physical and e-tailing presences
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Sources: NRF Stores & Internet Retailer

5. Customers are in the driving seat – they choose
how they want to shop
50 -
40 -
30 -
20 -
10 -
BUY IN-STORE
SHIP TO HOME
BUY ONLINE
PICK UP IN-STORE
BUY IN-STORE
CARRY HOME
BUY ONLINE
HOME DELIVERY
% of respondents who are doing more of the following activities than a year ago
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Source: Accenture

6. What does an
“Omni-channel” DC
network look like?
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?

7. The omni-channel ready DC: Yesterday vs. Tomorrow
Traditional e-commerce model
“Best of Class” omni-channel model
3PL
@
DCs close to air hubs for next day or
2-day service
Low cost workforce
DCs 500k – 900k SF
5-10 year real estate lease
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Same day delivery capability
DCs close to ground sortation hubs
Business and economic incentives
Build-to-suit DC 1M+ SF
Own or 15-year+ ‘credit’ lease

8. Dock to Doorstep OR Ship to Store? The new DC approach
Retailer
NDC/RDC
Shop
3PL
Supplier goods
warehouse
Customer
@
Retailer
e-fulfillment center
Local collection
depot
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Ground sort
hub
Local delivery
depot

9. What does your DC need?
Building a better mousetrap for today’s omni-channel users
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Source: Jones Lang LaSalle

10. ‘Clicks’ are translating to ‘bricks’
U.S. e-commerce demand concentration
Seattle/Puget Sound
Minneapolis
Boston
Philadelphia
Chicago
Sacramento
NorCal
Salt Lake City
San Joaquin
Demand
Los Angeles
New Jersey
Indianapolis
Baltimore
Cincinnati
St. Louis
Inland Empire
Dallas/Fort Worth
Richmond
Charlotte
Memphis
Phoenix
200 to 999K sf
Columbus
Atlanta
February 2014
1 to 2.0M sf
2.1 to 3M sf
Houston
Tampa
Transactions
3.1M sf+
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2013 -
200K sf+

11. What’s next?
Urban Logistics
This year, omni-channel retailers will turn to Urban Logistics models
to win the delivery war, facilitated by six newly-defined facilities …
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12. E-commerce facility
Main building attributes
Main location attributions
Mega e-fulfillment centers
- Very large (50K sf to 1M sf+)
- Close to parcel hub
- High bay (15m) to accommodate mezzanine floors
- Close to labor supply
- Often cross-dock configuration
- Does not need a traditional
“center of gravity” location
- High level of employee parking to accommodate full-time
and seasonal staff
Parcel hub/sortation center
- High length to width ratio
- Low site density
- Cross-dock configuration with extensive loading for lorries
- Center of gravity location to feed local
parcel delivery centers in “hub and
spoke” network
- 360-degree circulation around the building
- Highly automated internal operation involving sortation systems
Parcel delivery centers and urban logistics depot
- High length to width ratio
- Low site density
- Edge of major cities and urban areas
for home delivery to collection points
- Cross-dock configuration with extensive loading for lorries
- 360-degree circulation around the building
Return processing centers
- Typically bespoke, depending on operation
- Located to return items
to e-fulfillment centers
Dot.com warehouse for online food fulfillment
- Specification reflects type of operation – e.g. degree
of automation
- Edge of major cities and urban
areas where online food order volumes
are highest
- Bespoke loading provision for vans
- Extensive yard area for trailer and van parking and ample
parking for high number of staff
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13. Is your Omni-channel
Strategy Real Estate
Ready?
Real Estate’s role in retail success
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