Online Retailers Subletting Warehouses as Shoppers Return to High Street
- Demand for retail warehousing falls to decade low
- Online shopping surge during Covid-19 pandemic falters
- Amazon subletting empty warehouses in the UK
- Sainsbury’s and Co-op also subletting unused warehouse space
- Cost-of-living pressures lead to reevaluation of storage and distribution requirements
The demand for retail warehousing has reached its lowest point in a decade, according to The Telegraph. This comes as the surge in online shopping during the Covid-19 pandemic begins to decline, with shoppers returning to physical stores. Research from CoStar Group revealed that the number of firms abandoning their warehouse space surpassed those occupying them for the first time. Amazon has halted growth plans and started subletting its empty warehouses across the UK, while supermarkets Sainsbury’s and Co-op have also begun subletting unused spaces as online grocery shopping decreases in favor of in-store visits. Gavin Lonsdale, Costar Group director of market analytics, stated that with cost-of-living pressures affecting consumers and retailers, there is a need to optimize overheads by reevaluating storage and distribution space requirements.
Factuality Level: 8
Factuality Justification: The article provides relevant information about the decline in demand for retail warehousing, cites a reputable source (CoStar Group), and discusses the reasons behind this trend (online shopping slowing down and cost-of-living pressures on consumers). It also includes quotes from an expert in the field. However, it could provide more context or data to support its claims.
Noise Level: 3
Noise Justification: The article provides relevant information about the decline in demand for retail warehousing due to changes in consumer behavior and economic factors, but it could benefit from more analysis or context on the long-term implications of this trend and potential consequences for the industry.
Financial Relevance: Yes
Financial Markets Impacted: Retail warehousing sector, Amazon, Sainsbury’s, Co-op and third-party logistics providers
Financial Rating Justification: The article discusses the decline in demand for retail warehousing due to changes in consumer behavior and its impact on companies like Amazon, Sainsbury’s, and Co-op, which affects their financial performance and operations. This has implications for the retail and logistics industries, as well as related financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk