CBRE: future hybrid store is integrating retail and logistics

The COVID-19 disruption has accelerated the blending of brick-and-mortar retail and logistics real estate. This has resulted in the emergence of a new hybrid store model, one that takes omnichannel strategies to the next level, promising to revolutionize the retail and industrial & logistics industries.

CBRE envisions a hybrid store that allows consumers to engage and purchase seamlessly in-store and online across a wide range of retail categories and product lines. This hybrid model will preserve the store experience for physical shopping while leveraging logistics capabilities for the fulfillment of online sales.

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The key take-aways from the CBRE report are:

  • New Model Emerges: pandemic-related disruption to retail supply chains and operations has paved the way for a new store model that combines retail and logistics real estate.
  • Fulfillment Requirements Accelerate: several retailers are now using stores as last-mile fulfillment centers for online orders.
  • Creating a New Asset Class: the integration of retail and industrial real estate is producing a new asset class that includes stores with both physical shopping and purchase shipment services, as well as “dark stores” that provide pickup and shipment services without in-store shopping.
  • Store Valuations Evolving: a new and more sophisticated pricing mechanism is needed to determine the value of stores and retail rents, especially for retailers that have more online channels.

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