There's no denying that as consumers we shop very differently to how we used to even a decade ago. Online shopping has been popular for years but in recent times it has become almost the norm; even the Boxing Day sales see a lower footfall than in the past as consumers shop the sales from their living rooms, with a turkey sandwich in hand. Supermarkets offering online grocery shopping, and the rise of same day delivery services have cemented online shopping as the easiest, most consumer friendly way to shop. With our increasingly busy lifestyles it's no wonder that consumers are taking the easiest approach to purchasing everything they need, from carrots to Cartier.
This shift has created a huge change in the way retailers, wholesalers and manufacturers do business. Smaller manufacturers are increasingly turning to the online, direct-to-consumer model, as this allows them to be competitive on price because they're not selling at a lower price to wholesalers and retailers, who have traditionally made the biggest profit margins in the while supply chain. This loss of revenue for the retailers is part of the reason stores are closing down as rents and rates rise – there's simply not enough revenue coming in to pay these costs and turn a profit.
The fashion retailer Boohoo is a good example of this. They started life as a wholesale supplier to retail chains, but having changed direction to a direct-to-consumer model, they can produce smaller batches for direct sales and they have more control over their stock levels as a result. They have also protected themselves against the effects of the chains they supplied closing their doors. This means less space is needed for large batches that would have been bonded by retailers, and instead the space they have can be turned around much faster, meaning they need less room to play with.
The knock on effect of this on the logistics of consumer retail has been a change in demand for warehouse space. The total amount needed has grown, but the main change has been a diversification of locations among larger retailers, who are fulfilling and delivering their own orders and a rise in demand for smaller warehouses for businesses moving from a wholesale to a retail model. With several smaller temporary warehouses located across the country fast delivery can be achieved, either through the business' own delivery system or through third party couriers and Royal Mail.
Temporary warehouses, such as the ones we supply, have met these changing needs very effectively. For a business just starting out in online retail they are ideal because the size and dimensions can meet the exact specifications of the business, while retaining the flexibility to add more space as needed. Due to the fast installation of temporary warehouses they are perfect for fast growing businesses, as this significantly reduces the time it takes to get off the ground and start selling product direct.
An important aspect of temporary building ownership is the ability to relocate the structure as needed – it is a very versatile asset and one which can be used for several years in one or more locations. This flexibility allows retailers to strategically locate their warehouses and to change this as new consumer patterns emerge. Our temporary warehouses are also available to rent and if the building is needed for longer, the rental period can be increased or there is the option to buy outright. This extra flexibility that temporary buildings provides makes them the superior option for fledgling business, as well as ones which are moving from wholesale to retail.
Whether you're an established manufacturer or wholesaler looking to move into the direct-to-consumer arena, or a new business selling direct online our temporary warehouses are perfect, so call us today on 0121 288 5440 for more information.