Evolving E-Commerce May17

Evolving E-Commerce

Today’s retail market is something of a “living” sector, seemingly in a state of constant change as manufacturers and retailers learn to harness ever-advancing technology to attract and retain customers. Over the years, advancements have led to a variety of concerns, some of them significant: The growing popularity of online shopping has at various times fanned real estate owners’ fears that demand for bricks and mortar would wane. Retailers have feared a loss of turf to e-tailers, in particular Amazon and other mega-players. Consumers have feared invasion of privacy as their preferences are recorded and targeted in minute detail. All are valid concerns. But like any advancement, over time technology has also brought brand awareness, better customer service, greater convenience—even a competitive edge. And the refinements keep coming. As the speed of e-commerce increases, the types of technology needed to meet higher expectations grows ever more complex. Same-day delivery of consumer and business goods is one new wrinkle. Once limited to local delivery in big cities (Barnes & Noble has long offered the service in New York City, for instance), this trend promises to spread in the not-so-distant future. But with volume and distance come complications: Extending the reach and volume of same-day service demands new types of machinery and new sorting capabilities—and that presents a challenge not just for the machine manufacturers and logistics providers but for the property owners, as well. In fact, the new machinery requires a variety of changes in space: more complex internal layouts and technical capabilities to accommodate the machinery; larger mezzanine areas with higher clearance for packaging and other back-office tasks; greater life-system components ranging from lighting to HVAC to parking to fire protection because of an increased employee presence. The warehouses, though necessarily more locally based...