CBRE Report Finds E-Commerce Sales Are On Steady Rise In The Southeast And The U.S.
December 8, 2014
GREENVILLE, SC – A recent CBRE report found that online sales over the course of Thanksgiving weekend grew 17 percent over 2013, with an average order size of $124. Similarly, on Cyber Monday, sales grew 8.5 percent year-over-year.
“Cyber Monday is no longer a one-day event,” said Spencer Levy, CBRE Americas Head of Research. “Consumers are now spreading their holiday shopping over ‘Cyber Week’ taking advantage of online sales that began before Black Friday. Continued strength in online shopping is a trend which bodes well for the U.S. industrial real estate market, as e-commerce companies and omni-channel retailers will need more space to warehouse and process online shipments.”
During the five-day “Cyber Week” period, online sales were up 12.6 percent nationwide, indicating that consumers are spreading their shopping activity over the course of the holiday season rather than just focusing on a single day.
Traditional brick-and-mortar retailers seemed to reap the benefits of adopting omni-channel strategies, the report shows. On Cyber Monday, department stores recorded 17.9 percent year-over-year growth in online sales nationwide, while the biggest retailer in the U.S., Walmart, reported its best Cyber Monday ever.
“There has been a misconception that online retail is expanding solely at the expense of brick-and-mortar retail stores,” said Tommy Molin, CBRE Senior Associate. “The reality is that the stores that are going to see the most success are going to adopt ‘omni-channel’ strategies, where retailers strategically sell goods in both arenas.”
In response to exploding online sales growth, UPS and FedEx announced that, between them together, they would hire 150,000 seasonal employees – double the number over last year – to meet the increased holiday demand.
CBRE research shows that the growth of e-commerce has had a significant effect on the U.S. industrial real estate market, with more than 35 million square feet leased by e-commerce users in 2014 and at least that many expected for 2015.
“E-commerce is driving a significant amount of activity in the Southeast, which is increasing demand for modern, often large, distribution centers, as companies work to drive efficiencies and speed to market,” said Trey Pennington, CBRE First Vice President. “In addition, many retailers are integrating omni-channel delivery strategies. This not only affects the supply chains, but also is driving initiatives to increase efficiencies and sizes of retail locations.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
