Impact of Covid-19 to accelerate European e-commerce growth by one year
According to Savills, the impact of the pandemic is set to accelerate online retail penetration by an average of one year and, in turn, drive demand for prime logistics space in Europe. Prior to Covid-19, average online activity as a total proportion of the total retail sales in Western Europe was forecast to reach 15.3 percent by 2022. However, the Centre for Retail Research’s (CRR) post-Covid online penetration rate forecasts that this level will now be reached by 2021. Online retail activity accounted for unprecedented levels of the total retail sales, spiking temporarily to as high as 33 percent in the UK, according to Office of National Statistics (ONS). However, based on the analysis, Western European online retail penetration should normalise at 15.3 percent by 2021. Marcus de Minckwitz, Director, Savills Regional Investment Advisory, EMEA, explains, “Increases in online spending have always meant increased demand for warehouse space and we have seen unprecedented growth across all markets since lockdown. Some…
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