Europe’s Retail Industry Transformation (Part 2)

– How adoption of online shopping impacts and accelerates the increasing demand for urban logistics-

 

The e-commerce market in mainland Europe is on the rise, with online retail sales totaling approximately €293 billion in 2021 across the top seven e-commerce markets of France, Germany, Italy, Spain, Netherlands, Sweden and Poland. These markets have an online penetration rate of 15.6%, which is expected to increase to an average of 19.3% by 2026. With the forecasted growth in retail sales and the rising penetration rate, the online retail market is expected to reach a total of €434 billion by 2026, marking a significant increase of €142 billion or 48%. This growth highlights the growing importance of e-commerce in the retail industry and the increasing demand for digital shopping solutions.

 

With this growing trend towards online shopping, the importance of effective last-mile logistics solutions is becoming increasingly evident. Urban populations are growing and expanding, leading to a heightened demand for faster, more efficient delivery services. In order to meet this demand, e-commerce companies must consider a range of factors when determining the amount of space needed for last-mile delivery, including consumer demand and online spending, as well as the distribution model and inventory levels. The choice of fleet vehicles and their utilisation efficiency also plays a key role, with some models prioritising urban logistics spaces over centralised distribution centres. Research on e-commerce operators in the UK and mainland Europe has shown that on average, 20-25% of total warehouse space is dedicated to servicing last-mile deliveries through “spoke” facilities. This trend is largely driven by urban consumers who expect faster delivery times and on-demand services.

 

According to the hub and spoke model, for every €1 billion in e-commerce sales, a roughly estimated 24,000 sq m of urban logistics space is required to effectively service last-mile delivery. This calculation is based on current capacity utilisation rates and the need for efficient and accessible “spoke” facilities in urban areas. With the continued growth of e-commerce and urban populations, it is crucial for companies to consider and plan for their logistics space needs to ensure optimal delivery services for their customers. This challenge is putting logistics companies like SHAOKE at the forefront of industry innovation.

 

How SHAOKE has established itself as a leader in the logistics industry

Wide reach and ample warehousing space

 

SHAOKE has proven themselves to be a reliable partner by delivering over 200 million parcels to satisfied customers. With six global offices in Germany, France, Belgium, The Netherlands, and China,  and 220,000 square feet of self-owned warehouse space, the company is well-equipped to handle the growing demands of the e-commerce industry. In addition, SHAOKE is constantly expanding its reach and service offerings, ensuring that its customers receive the highest level of support and service. Whether it’s through its extensive network of logistics centres and regional last-mile delivery providers, or its wealth of local expertise and professional experience, SHAOKE is meeting the challenge facing the e-commerce industry –  to balance the need for fast and convenient delivery with the need to optimise warehouse space utilisation and reduce costs.

Focused on eco-friendly practices

In addition to its focus on operational efficiency, SHAOKE places a strong emphasis on sustainability and environmental responsibility. The company actively promotes the use of zero-emission, high-efficiency electric vehicles over traditional fuel-powered vehicles in its operations, whenever possible.

And to further reinforce its commitment to environmental stewardship, SHAOKE provides environmental training as part of its corporate-level training programs across all its offices. The company also aims to raise environmental awareness among its employees and to encourage them to adopt environmentally-friendly practices both inside and outside the workplace.

 

To help guide these actions and behaviours, SHAOKE has created the SHAOKE Green Playbook v1.0, which outlines best practices for daily life, office operations, and industry standards. The Green Playbook is regularly updated and revised to reflect the growth and development of the company and its commitment to sustainability. By prioritising the use of eco-friendly technologies and encouraging environmental awareness among its employees, SHAOKE is demonstrating its dedication to creating a better future for the planet and its stakeholders.

 

To learn more about SHAOKE or connect with the team, visit www.shaoke.com.

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