Source: Globe St.
The new demand will require that food-delivery service companies re-structure their supply chain and expand their real estate footprint.
Once again, the industrial sector seems to be the biggest beneficiary of the pandemic.
While e-commerce companies in general have experienced increase demand and consumer traffic since the start of the pandemic, food and beverage products top the list of online sales, according to data from JLL. Grocery delivery service Instacart, for example, had a 500% increase in customer volume in May, and Ryder System Inc. has expanded its real estate footprint to accommodate new demand for consumer-packaged goods and food and beverage.
Overall, food-and-beverage online sales have increased 84.9% year-over-year. Household care sales, the category with the second largest increase, are up 65.2% year-over-year, and Pet care sales increased 45.6%. Food-and-beverage are by far the leader in online shopping growth for the year.
For the real estate market, the increased grocery delivery sales will drive demand for cold storage, fulfillment spaces and freight and third-party logistics companies. More specifically, grocery delivery companies are looking for facilities that are close to major population centers to meet shallow delivery timelines.
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