- November 15, 2016
- Posts from Friends
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As everyone knows, smart phones, the internet, technology and e-commerce seem to be taking over almost every industry. The commercial real estate industry has definitely experienced changes from the growing use of smart technology. The NAIOP Commercial Real Estate Development Association recently published a blog post about the effects technology has had on the retail segment, specifically grocery stores. Garrick Brown, Vice President of Retail Research for Cushman & Wakefield, discusses the possibility of increasing use of E-grocery stores. Read the excerpt below, then view the full article from NAIOP by clicking the green button at the bottom.
The E-grocery Onslaught?
It’s no secret that the rise of the millennial consumer has been a driving force in the acceleration of e-commerce growth. They’re tech savvy, they embrace e-commerce and they use their smartphones to shop. And, according to the Pew Research Center, millennials surpassed baby boomers as the largest living generation of consumers earlier this year – and they haven’t yet reached their peak. The same recent Pew analysis projected that millennials will reach 81.1 million consumers in 2036.
As powerful as those numbers are, online or “e-grocery” sales only account for a tiny share of the total grocery marketplace. Amazon has built its distribution chain out by over 40 million square feet, and can now offer delivery next-day – if not same-day – to many places throughout the continental U.S. In June, the company expanded its Amazon Fresh grocery delivery service to 69 postal codes in London, marking the international debut of an e-grocery concept that is already available in Baltimore, Boston, New York, northern and southern California, northern New Jersey, Philadelphia and Seattle.
So are we on the eve of a radical shift in how people buy their groceries, one fueled by demographics and technology that over the next decade will rival what we have seen for traditional retail hard goods over the past 10 years?