News
Brick and Mortis?
March 2, 2011
| Get ready to rumble. In this corner we have online stores; and on the other side of the ring, traditional retail stores. Can't they just get along? | |
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| K&L Gates partner Martin Garza says it's not an ?either/or? question but how to integrate operations to address shopper?s use of both platforms. He cites comScore research showing retail e-commerce reached $32.6B for the 2010 holiday season, 12% more than '09, and a new high. Expanding e-commerce operations may mean more office space as well as warehouse, distribution, and fulfillment capacity. What other implications are there when evaluating new locations or additional space? | |
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| Martin gives an example of a major retailer with plans to: add 56k SF of office space in Midtown Manhattan for new e-commerce staff; expand its existing fulfillment center in Tennessee; and build a newfulfillment center in West Virginia to support its e-commerce operations. Distribution needs may change if companies are moving more product through the mail instead of malls. Additionally, online sales are a 24/7 business and don't conform to mall hours. Employees may need around-the-clock access to their space. This has implications for building access, security, parking, energy usage, and provision of building services. | |
