UAE – Mubasher: The retail sector in the emirate of Dubai has been witnessing a major transformation with the form of a new ‘retail logistic’ industry in line with accelerating e-commerce and evolving consumer preferences, the commercial real estate services company JLL said in a recent report.
Alternative investment opportunities have been created in Dubai’s logistics sector on the back of new innovative real estate solutions, JLL highlighted.
Retailers try to fulfill the growing demand for online delivery while balancing oversupplies of retail space and combine e-commerce with brick-and-mortar business into ‘omni-channel retailing’ to improve their performance and boost their real estate portfolios, according to the report.
Craig Plumb, Head of Research JLL MENA, said: “Portfolio optimization is driving demand for more and better quality warehousing as retailers seek to satisfy changing business models to meet the needs of their growing consumer base.”
“Many retailers are finding themselves with excess stock within stores but a shortage of quality warehousing. We estimate that at least 50% of recent demand for warehouse space across the UAE comes from the retail sector,” Plumb added.
Demand for warehousing space and logistics solutions has been growing under the booming online retail with retailers now making investments across both full supply chain and traditional physical spaces, the report indicated.
Moreover, CEO of JLL MEA hierry Delvaux said: “Private and public sector industry players will have to adopt and fast track a number of new innovations in the supply chain such as automated delivery, tech enabled personalization, digitization of addresses and investing in pick up locations.”
“We expect to see more investment from the private sector in years to come as a number of recent relaxations to government regulations will allow greater flexibility on building bespoke logistics solutions. Another factor driving this growth is the creation of specialist funds seeking to invest in the logistics sector,” Delvaux noted.
