Report | Adaptive Spaces
The Future Hybrid Store
Integrating Retail and Logistics in an Era of Omnichannel Real Estate
08 Dec 2020
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 new model will preserve the store experience for physical shopping while leveraging logistics capabilities for the fulfillment of online sales.
- 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.