On the Edge of the Evolving Consumer Experience EMEA

Transcription

1 On the Edge of the Evolving Consumer Experience EMEA

2 newcommerce: The New Way We Do Business Seamless, full-service solutions for today s ever-evolving retail landscape. Cushman & Wakefield s newcommerce service is the business and thought leadership collaboration connecting our Retail Services platform with our Logistics, Supply Chain, and ecommerce expertise. RETAIL SERVICES 200 Retailer relationships 90 Offices This connection is being driven by the advancement of omni-channel shopping, technology, bricks-and-mortar experiential retail, and the need for coordinated supply chain functions. Cushman & Wakefield aims to broaden the reach and change the paradigm for retailers, advising on what is changing in these sectors, and on how retailers can maintain success and grow into the future. It s not ecommerce It s newcommerce. And it s all encompassing. 300 Retail Professionals LOGISTICS AND INDUSTRIAL SOLUTIONS 5.2M #1 13 Ranking in the U.S. By Industrial SF Leased Aggregate SF Countries in Europe 115 Dedicated Industrial Professionals in EMEA 6.75M SQ M TRANSACTED IN newcommerce: On the Edge of the Evolving Consumer Experience CUSHMAN & WAKEFIELD 3

3 ecommerce Direct-to- Consumer is 70B in Europe Growing 7-10% over the next 5 years COLLABORATIVE SERVICE OFFERINGS Cushman & Wakefield has extensive knowledge in retail services relating to ecommerce, logistics, and supply chain. Our collaborative list of service offerings includes: 69% growth in European parcel volumes by 2021 Asset Services Engineering management, sustainability consulting, facilities management, and facilities audits & assessments Capital Markets Services Acquisition and disposition of properties/assets Online sales across Europe expected to rise by 94% by 2021 Inventory Optimization & Placement* Project & Development Services (PDS) Where to store/stage inventory, how to use inventory to meet service expectations Construction programming, planning, design, bid, and procurement; vendor management; POS installation; new construction; remodels; improvements Retail and Industrial Brokerage Services Lease advisory and negotiation, site selection and transaction management 59% of millennials say a nearby physical store presence is important to them when buying online Strategic Retail & Logistics Consulting Transaction & Portfolio Management Transportation Support* Market entry, store expansion, portfolio optimization, and brand entry Manage and support transactions across a portfolio regionally, nationally, or globally Transportation operations and sourcing Valuation & Advisory Valuation of property and equipment, property tax services, appraisal management, and portfolio evaluation 4 newcommerce: On the Edge of the Evolving Consumer Experience CUSHMAN & WAKEFIELD 5

4 How can I possibly compete with Amazon online? Can I run my direct-to-consumer, store, and wholesale distribution using the same facilities? With robust expertise in ecommerce strategy and leadership, we can advise on the pros and cons of selling in the marketplace and how to navigate the ever-changing ecommerce landscape. With extensive internal and leveraged partner-expertise in supply chain consulting, we can provide proper evaluation to assess status quo and develop improvements, and project management to deliver facilities, real estate, and MHE (material handling equipment) to execute the best strategy for each retailer. Amazon has a 20-year, $100B infrastructure head-start on the rest of the retail industry, coupled with immeasurable talent, technology, and consumer loyalty. No retailer exists today that will be able to beat Amazon in the business it created. Partnering with Amazon may deliver an extremely high click rate and offers sales volumes a retailer may not achieve as quickly otherwise. The nature of running case-pack flow of goods in and out of legacy distribution centers requires a radically different technology and process than fulfilling individual orders. It is rare for direct-to-consumer and bulk handling to be compatible, but for some types of goods and product flows, the facilities can be leveraged together. How do I know if my distribution network is optimized for all my current and anticipated consumer needs? What is the advantage to integrating my retail and logistics real estate and operations? Our strong resources perform quantitative assessments of a retailer s existing distribution network to plan and develop the right changes for each client*. Integration of Retail and Logistics expertise ensures optimal coordination and planning of these asset types for our clients. We are able to support improved alignment of historically siloed functions with the ability to shorten speed-to-market and improve costs changing a retailer s supply chain through a strategic value proposition. Since the retail and logistics world is fastpaced and rapidly changing, it is imperative to constantly be tracking, optimizing, and enhancing retail distribution networks. Developing and tracking the most effective KPIs and metrics are important for measuring network performance. This often demands independent outside expertise to evaluate and provide a strategic viewpoint. Demand planning and challenges to modern inventory planning are a whole new world today, different than just three years ago. Having the right logistics real estate assets in the right locations is critically important. The most innovative retail technology in-store and online, strongest brand image and equity are only as good as the performance of the supply chain that supports it. 6 newcommerce: On the Edge of the Evolving Consumer Experience CUSHMAN & WAKEFIELD 7

5 Should I self perform my direct-to-consumer, store, and wholesale fulfillment, or contract out to third parties (3PLs)? Is Click & Collect the best starting place for my omni-channel offerings? We hold a deep bench strength in 3PL evaluation/auditing AND real estate professionals with extensive 3PL operations experience, which we can leverage based on client needs*. Our professionals have market-leading experience partnering with retailers on developing alternative ways to leverage store footprint. Deciding on a 3PL or self-perform model depends on a multitude of characteristics/ economics (such as: nature of inventory and process flow), as well as a retailer s willingness and ability to manage the risk of self-performance. 3PLs are structured to: Scale production up or down significantly faster than most who self-perform Help to distance the retailer from a plethora of labor, HR, and risk-related issues Offer a single-point-of-accountability for performance metrics Click & Collect is not nearly as easy, cost effective, or successful for the consumer as it may seem, although to the retailer it may seem simple in the ability to leverage existing stores to meet consumer interest. Fulfillment from store shelves to consumer OR shipping individual online orders to the store demands a different labor plan and store space layout model. A retailer s inventory management system will make or break the consumer experience for Click & Collect if strong it will instill consumer trust; if weak it will lead to a poor consumer experience overall. I am a Pure Player ecommerce retailer building a physical store presence what should I consider? How do I decide if I should lease or own my retail and logistics assets? We can help a Pure Player (pure ecommerce retailer) maximize their bricks-and-mortar investment by offering a unique set of retail consulting services utilizing a proprietary software to analyze market economics, aid in optimal location selection, and store planning strategy. We can simultaneously consult on ways to leverage existing back-end logistics and retail real estate to optimize for total inventory usage and expansion. Our specialized capital markets and financial analysis teams work with retailers by providing supporting resources in evaluating, planning, and executing sales/lease transactions, site selection, and retail & logistics brokerage for new or expanded physical networks. The right balance must be met between new physical presence and online retail so one compliments the other effectively. Optimize existing direct-toconsumer supply chain and fulfillment operation to ensure core business processes are stable and ready for expansion. Develop a physical location plan that addresses sales velocity and allows for the necessary store replenishment system to be put into effect on the ground. Answering the lease vs. own question is contingent upon an array of factors such as business culture, ownership structure, demands for capital within other aspects of the business, as well as the nature of the balance sheet, taxes, cash flow management, and the local market characteristics. 8 newcommerce: On the Edge of the Evolving Consumer Experience CUSHMAN & WAKEFIELD 9

6 Unparalleled Retail Insight ecommerce Leadership Logistics & Sector Expertise SEAMLESS APPROACH 10 newcommerce: On the Edge of the Evolving Consumer Experience CUSHMAN & WAKEFIELD 11

7 Retail Services Justin Taylor Head of Retail, EMEA Logistics & Industrial Services Robert A Hall International Partner Logistics & Industrial Services, EMEA robert.a.hall@cushwake.com Steven Watt Partner Logistics & Industrial Services, EMEA steven.watt@cushwake.com Supply Chain Engineering Tom Bonkenburg Director of European Operations St. Onge Company tbokenburg@stonge.com * Services provided by third party partnership with St. Onge cushwakenewcommerce.com