Retailers face up to the seasonal storage challenge

May 5, 2017 Sanjana Saluja

As demand for industrial space reaches an all-time high, retailers with seasonal warehousing needs are finding it harder to secure the space they require. JLL Real Views explores the challenging tasks that retailers face.

Consumers may head online to shop all year-round but the type of goods they buy – and the quantities in which they buy them – vary significantly depending on the season.

For retailers, storing what they need to fulfill customer orders in a market where vacancy rates for industrial property are low and rents are rising, is becoming an increasingly challenging task.

“The busiest time is typically between August when the kids return to school and the frenzied December holidays,” says Matt Powers, Executive Vice President of JLL’s Retail/e-commerce Distribution practice. During this time, retailers need to store a vast array of goods, from the stationery and learning materials required for new school years to the gifts and decorations in the run-up to the holiday period.

“Companies will start getting inventory ready for peak season months in advance,” Powers says. Yet once the rush is done, there’s a lull period when many retailers have less need for storage space.

Find out the right strategy for retailers looking for ready-to-rent warehouse space here.

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