Property Insight: Retail Evolutions

The full report

Retail Evolution

Retail evolutions: shops to warehouses


Cushman & Wakefield is pleased to present its latest Australian Property insight "Retail evolutions: Shops to warehouses".  

Download the PDF to read the analysis, or read on for a summary.


Summary

The rise of e-commerce in Australia and the coming of Amazon is not all bad for Australian commercial real estate.

It creates an opportunity for small retailers and is driving demand for storage/warehouse space.

Mobile technology and the arrival of international retailers like Zara and Uniqlo has sped up the evolutionary process in the Australian retail environment with the arrival of the retail giant Amazon likely to cause further disruption.

Amazon is not just a mega retailer, it is also a marketplace or platform for small retailers. In the US in Q1 2017 third-party sellers accounted for 50% of Amazon’s paid unit sales. Expansion of third-party sellers has been rapid, with Amazon’s income from services to third-parties rising by 43% between 2015 and 2016.

The rise of e-commerce in Australia has helped drive demand for storage space. Both the large scale logistic complexes as well as smaller storage facilities currently used by traders on platforms like eBay and Gumtree.

If Australian third-party sales on Amazon increase at a similar rate to the US, demand for small storage/warehouse space in Australia is likely to continue to rise.