newcommerce - on the edge of the evolving consumer...

On the Edge of the Evolving Consumer Experience

EMEA

CUSHMAN & WAKEFIELD | 32 | newCommerce: On the Edge of the Evolving Consumer Experience

RETAIL SERVICES

LOGISTICS AND INDUSTRIAL SOLUTIONS

200

#1 13

6.75M

90

300

115

5.2M

Retailer relationships

Ranking in the U.S. By Industrial SF Leased

Countries in Europe

SQ M TRANSACTED IN 2016

Offices

Retail Professionals

Dedicated Industrial Professionals in EMEA

Aggregate SF

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.

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.

newCommerce: The New Way We Do BusinessSeamless, full-service solutions for today’s ever-evolving retail landscape.


eCommerce Direct-to-Consumer is €70B in

Europe —Growing 7-10% over the next 5 years

69% growth in European parcel volumes by 2021

59% of millennials say a nearby physical store

presence is important to them when buying online

Online sales across Europe expected to rise by 94%

by 2021

Cushman & Wakefield has extensive knowledge in retail services relating to eCommerce, logistics, and supply chain. Our collaborative list of service offerings includes:

COLLABORATIVE SERVICE OFFERINGS

Asset Services Engineering management, sustainability consulting, facilities management, and facilities audits & assessments

Capital Markets Services Acquisition and disposition of properties/assets

Inventory Optimization & Placement*

Where to store/stage inventory, how to use inventory to meet service expectations

Project & Development Services (PDS)

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

Strategic Retail & Logistics Consulting

Market entry, store expansion, portfolio optimization, and brand entry

Transaction & Portfolio Management

Manage and support transactions across a portfolio – regionally, nationally, or globally

Transportation Support* Transportation operations and sourcing

Valuation & Advisory Valuation of property and equipment, property tax services, appraisal management, and portfolio evaluation


RETAILER CHALLENGE:

Can I run my direct-to-consumer, store, and wholesale distribution using the same facilities?

The Cushman & Wakefield Edge 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.

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.

RETAILER CHALLENGE:

How can I possibly compete with Amazon online?

The Cushman & Wakefield EdgeWith 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.

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.

RETAILER CHALLENGE:

How do I know if my distribution network is optimized for all my current and anticipated consumer needs?

The Cushman & Wakefield EdgeOur strong resources perform quantitative assessments of a retailer’s existing distribution network to plan and develop the right changes for each client*.

Since the retail and logistics world is fast-paced 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.

RETAILER CHALLENGE:

What is the advantage to integrating my retail and logistics real estate and operations?

The Cushman & Wakefield Edge 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.

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.


RETAILER CHALLENGE:

Is Click & Collect the best starting place for my omni-channel offerings?

The Cushman & Wakefield Edge Our professionals have market-leading experience partnering with retailers on developing alternative ways to leverage store footprint.

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.

RETAILER CHALLENGE:

Should I self perform my direct-to-consumer, store, and wholesale fulfillment, or contract out to third parties (3PLs)?

The Cushman & Wakefield EdgeWe 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*.

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

RETAILER CHALLENGE:

How do I decide if I should lease or own my retail and logistics assets?

The Cushman & Wakefield EdgeOur 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.

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.

RETAILER CHALLENGE:

I am a Pure Player eCommerce retailer building a physical store presence—what should I consider?

The Cushman & Wakefield EdgeWe 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.

The right balance must be met between new physical

presence and online retail so one compliments the other

effectively.

Optimize existing direct-to-consumer 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.


SEAMLESS APPROACHUnparalleledRetail Insight

eCommerce Leadership

Logistics & Sector Expertise

Justin TaylorHead of Retail, [email protected]+44 7764 398 198

Robert A HallInternational Partner Logistics & Industrial Services, [email protected]+44 7768 123 425

Steven WattPartner Logistics & Industrial Services, [email protected]+33 681 24 80 43

Tom BonkenburgDirector of European Operations St. Onge Company [email protected] +31 612 54 06 66

cushwakenewCommerce.com

* Services provided by third party partnership with St. Onge

Retail Services

Logistics & Industrial Services

Supply Chain Engineering

www.cushwakenewcommerce.com

newcommerce - on the edge of the evolving consumer...

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