Congratulations to everyone included in this year’s Retail Week Etail Power List.

Congratulations to everyone included in this year’s Retail Week Etail Power List. The success of these individuals and the companies they run is proving to be highly influential; they are driving innovation not only in their own sector, but also along the supply chain. In the logistics property market, etail is helping to shape the future.

The challenge that developers face is that distribution centres are the focus of ecommerce operations. Since etailers need buildings that will accommodate day-to-day operations as well as hold stock, they typically need warehouses of at least 500,000 sq ft.

There are very few sites in the UK that are sufficiently large for buildings of this size, but since consumer goods etailers do not always need to be in established distribution locations, we are also starting to develop sites in non-traditional areas.

The specification of an ecommerce warehouse can also be very different from that of an offline retail operation. Etailers usually need more loading docks and cross docks to handle smaller parcels and higher volumes of reverse logistics. They also need mezzanines for handling returns and value-added logistics as well as higher levels of ancillary space and increased security.

While the increasingly complex operations within etail warehouses are influencing the way that the buildings are fitted out, developments in methods of goods distribution are also starting to have an impact on building design.

While grocery distribution centres need to be built on the fringes of urban areas, there is also a growing demand for parcel hubs close to town and city centres. This new trend is driven by etailers who are seeking to offer a direct delivery and returns service to customers who increasingly expect orders to be fulfilled in a way that is most convenient to them. Typically in the 50,000 sq ft to 100,000 sq ft size range, these parcel hubs are usually highly bespoke facilities with loading doors on all four sides.

Congratulations once again to everyone on the Etail Power List. Their success is proving to be a powerful catalyst for change. 

  • Andrew Griffiths, Managing director, Prologis UK