Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

Lower E-Commerce Demand For Warehousing Space

The demand for warehousing space by firms like Amazon, Flipkart, Bigbasket, and FirstCry have been observed to have come down significantly this year.

Photo Credit :

1636571490_9ks6qg_thumbnail_xpand_team_3.jpg

The demand for warehousing space by firms like Amazon, Flipkart, Bigbasket, and FirstCry have been observed to have come down significantly this year. The reason attributed to this is an expected slowdown in consumer demand, as per a recent study.

A mere 4 per cent contribution was recorded by e-Ecommerce companies with regard to warehousing leasing in the first half of 2022. This has come down from a major 23 per cent recorded in the same period last year. CRE Matrix data reveals that the top five e-commerce companies have observed an 83 per cent drop in leasing in the first eight months of 2022.

Industry experts say that the long-term picture showed scope for the logistics industry with the additional aid of government policies like National Logistics Policy (NLP), PM Gati Shakti national multi-modal connectivity initiative, alongside an improving direct-to-consumer (D2C) business scenario in the country.

Data also shows how the total leasing on Grade A industrial and warehousing facilities during H1 2022 in the top 5 cities had been recorded at 10.8 million sq feet, which was a 7 per cent increase year on year.


Tags assigned to this article:
ecommerce platform Warehousing Space