MR 2018

72

Copenhagen Property Market Report 2018

DKK 42.5bn physical goods sold through e-commerce channels in 2017. 15% of goods are online sales. 25-30% last mile costs as share of total transport costs.

has snapped up one such site for the development of a state-of-the-art distribution hub to serve the entire Scandinavian market. Construction is ongoing, with completion scheduled for 2018.

Online shopping supports positive logistics development The growth in e-commerce is part of the reason for the increase in transported goods: On a national level, online sales are predicted to hit a high of DKK 115bn in 2017, up by 14% relative to 2016, marking a continued upward trend. This shows that e-commerce has become a fully integrated part of people’s shopping patterns. Nevertheless, online sales of physical goods account for only 37% of total online sales today, whereas travels and other services account for 63%. We expect further growth in online sales, supported by the 2017 logistics survey and poll prepared by FDIH. According to the poll, three in four webshops expect to distribute twice as many parcels in three years’ time. Today’s online sale of goods is raising the efficiency standards required of the so-called last mile distribution, estimated to account for some 25-30% of aggregate factory- to-consumer freight costs. We expect to see stricter demands for quick delivery in future, with last-mile distribution becoming an even weightier parameter. The mounting volume of goods sold online today not only includes bargain hunts for specialty goods such as home electronics and clothes, etc., but also daily groceries from businesses with a digital business platform. As the latter are available mainly in major towns and cities, today’s online grocery sales in these locations are five times higher than the national average . Last mile distribution centres to ensure quick delivery The demand for quick delivery within prearranged time slots is essential in respect of groceries, but quick delivery is also a quality parameter applied to traditional specialty goods, where the customer can track the movement of the ordered article from storage to home via track-and-trace functionality. Because of this development, centrally located distribution facilities near large housing districts in the Copenhagen area are expected to attract stronger demand, but so are facilities designed for the delivery of groceries, where the layout effectively supports the flow right from goods delivery by truck over picking of items and loading onto vans for delivery to end-user. This requires more staff on-site than traditional logistics facilities, translating into higher demands in terms of parking facilities and access to public transport. Although already in short supply, well-located logistics properties facilitating the efficient handling of goods for last mile distribution will attract increasing demand in the years ahead. In terms of goods delivery to the dense urban districts stretching from Ring Road 3 to the city centre, several existing business areas are poised to become part of the future transport structure. These include areas at Ejby Industrivej, Mileparken, Smedeland, Midtager and not least Avedøre Holme. For instance, Aarstiderne and Nemlig.com, grocery retailers with a digital business platform, have settled in Hvidovre and Brøndby, respectively. In 2015, Nemlig.com established

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