According to a new logistics market report, demand from internet retailers is causing UK warehouse property shortages.
With many worrying that warehouse property stick will have vanished altogether by the end of the decade in the UK, Midland Pallet Trucks is urging businesses to make the most of the space they have available by investing in good-quality equipment for use in warehouses.
As retailers attempt to satisfy consumer demand more quickly and efficiently, there is an unprecedented demand for warehouse space right across the country. Despite this warehousing space fell to a record low last year.
With online sales expected to significantly rise to reach £182.80 billion in 2016 and £215.38 billion in 2017, distributors and retailers will be looking to expand their warehouse space.
Although this year will see elevated levels of new developments, consultancy Lambert Smith Hampton (LSH) said that retailer and distributor requirements for logistics warehouses will exceed the country’s available stock by 2020 by around 7.6 million m2.
Phil Chesworth, managing director of Midland Pallet Trucks, offers his advice on the situation.
“It’s quite concerning that despite ongoing development, the country may see a lack of available storage. Warehouses are often over 30 feet high, meaning there’s ample space for companies to expand upwards instead of outwards and utilise the space they have available,” said Chesworth.
“By investing in quality equipment such as aerial work platforms and stacker trucks, warehouse staff are able to store products safely and effectively to make the most of their space.”
This news comes as industry experts urge shop owners to not give up on physical store just yet.
Recent research from BRC and Springboard revealed that High Street footfall has continued to decline in March 2016.
This continuing trend may make retailers questions whether to abandon a physical store all together and focus solely on an online offering. But BRC’s chief executive, Helen Dickson OBE, is urging businesses owners to consider improving their stores to keep up with the ever-changing shopping experience.
Terry Hunter, UK MD at Astound Commerce, believes that these new stats are further evidence of the fact that retailers need to ensure bricks and mortar stores remain an integral part of their business strategy.
Warehouse image via Shutterstock