Will Warehouse Space become more valuable post Covid?
We have certainly lived through some uncertain times over the last 2 years. Unprecedented in fact, as after the pressures of Brexit on many UK businesses, a further hit came in the form of the Coronavirus pandemic. Never before have we, within our lifetimes, experienced such a thing as Covid, and the repercussions will more than likely be felt for generations to come.
Businesses across nearly every sector have had to adapt to a new way of operating in order to survive, not least the warehousing industry. After the pressure eased slightly after Brexit stockpiling, the warehousing sector now faces challenges fuelled by the pandemic; consumer buying habits have changed as shops were forced to close during lockdowns, resulting in them heading online to spend. This has a knock on effect on the logistics industry as they have had to adapt to the change in new purchasing habits, whilst meeting the high demands in consumer goods, as the fast pace of e-commerce gains even more momentum and demand for home and next day deliveries increases.
High streets across the country have already seen a decline in footfall over the past few years, even before the emergence of Covid. More and more shop units stand empty and some huge retail chains have fallen by the wayside, such as the Arcadia Group, Toys R Us and Poundworld. Covid seems to have accelerated the decline in our high streets more quickly, so what could this mean for logistics and warehousing?
Well, in fact, the growth of e-fulfilment warehousing space was already on the rise, with online retail sales in the UK accounting for 20% of the makeup during 2019. And in March 2020 (the month that the UK went into its first lockdown) online customers spent a whopping £1.5 billion. Now demand could increase further which means huge increases in requirements for warehousing facilities and space.
With the e-commerce market continuing to expand, providing warehouse space that meets the needs of suppliers is set to become of valuable importance. Home working for some during the pandemic has become a permanent arrangement, so allowing customers to access information online is essential for adapting to new ways of working, meaning digitalised operations are becoming more common.
Supply chains have suffered throughout the pandemic with different country shutdowns playing a part. This has had a knock on effect and an increase in stock to mitigate delays and shows the need for extra warehouse space across the country.
When selling warehouse space, you must always be mindful of price, and value for money for your customers. Overpricing could see you eliminated as a facility, but under pricing could see you viewed as an inferior or lower quality solution.
Here at Eynesbury Warehousing we provide commercial storage unit solutions for businesses throughout Bedford, Cambridge and Hertfordshire offering self-storage or palletised storage options including full RH&D to suit our customers’ needs. Call us on 01480 215555 or find out more here.