FabFitFun - Proposal

CASE STUDY

Chewy.com

eCommerce Fulfillment Center Labor Market Validation

Increasing online sales have prompted the need for Chewy.com to expand their existing fulfillment center footprint in the central U.S. In partnership with C&W brokerage, six candidate properties were identified throughout the State of Indiana. C&W Business Consulting evaluated each option’s ability to support the 1,000-employee operation with respect to labor market considerations (i.e., labor supply, quality, competition and cost) in order to narrow the list of candidate properties for subsequent real estate due diligence and negotiation.

THE SOLUTION C&W performed a desktop labor market evaluation specific to assessing distribution-center labor supply, demand, competitive exposure, union membership/activity levels, and expected wages.

Unique to C&W, custom target workforce profiles for hourly warehouse workers are developed to identify common demographic household traits most frequently exhibited in its current workforce (i.e., age, income, education, occupation orientation). Results quantify the depth and concentration of similar targeted demographics within the primary commute shed. The desktop analysis facilitated the selection of three properties for further labor market due-diligence. The additional activity entailed interviewing distribution center employers to gain their perspective on:

+ + Workforce recruiting, retention and quality experiences in the market;

+ + Recruiting strategies (i.e., temp-to-perm, advertising, use of staffing agencies for placements);

+ + Applicant volumes, quality, pre-employment testing standards;

+ + Wage structures and benefits practices (i.e., starting wage, progression and premiums/bonus programs, time off with and without pay, vacation, cost of medical, dental, vision, and attendance policies);

+ + Union solicitation or, if already organized, historical frequency of grievances; and

+ + Satisfaction with overall operating environment.

Cushman & Wakefield | FabFitFun