Almost every fifth Pole buys all non-food products in online stores. As a result, total retail sales via e-commerce channels in Poland in 2021 exceeded PLN 100 billion and increased on average by 28.1% per year (CAGR). However, the intensive development of the e-commerce sector is associated with many challenges, among which experts most often mention the efficiency of the supply chain and the need to continue investing in last mile logistics, including courier, express and postal services. According to the "Polish CEP Report 2022" report, this segment is already valued at over PLN 17 billion, and according to forecasts in 2021-2023 it will maintain a double-digit growth dynamics both in terms of volume (14.1%) and value (19.9%).
- The value of online purchases made by Polish consumers is systematically growing. Online retail sales have grown by an average of 28% since 2019. annually. The largest share was recorded in the case of consumer electronics, almost 24 percent. and fashion, which accounts for 15 percent. orders. In turn, the fastest-growing segment in 2021 was e-grocery, with an increase of approx. 30%. - however, in this case, the market share remains low at only 4%. An equally interesting area of development is trading in things used on platforms such as Vinted or OLX. Online retailers and carriers need sufficient capacity in their distribution networks to ensure timely and convenient deliveries to consumers. One solution is home deliveries, which are becoming more and more popular both domestically and internationally. - says Mirek Gral, vice president of Last Mile Experts.
The biggest players on the market
According to the "Polish CEP 2022" report, InPost is the market leader, both in terms of volume and revenues. Only in the last year, the company has grown by nearly 40%, and its key competitive advantage is the largest network of parcel machines in Europe. The second place in the ranking is taken by DPD, and both companies are responsible for approx. 64 percent. in terms of volume and slightly below 50 percent. in terms of revenues on the CEP market.
- The dynamic increase in the popularity of online shopping meant that last year the volume of all parcels in the largest Polish courier network exceeded the magic limit of one billion, and according to forecasts, next year it will increase by another 31 percent. It is true that we are still far from the developed German market, which achieves four times higher results - we are talking about over 4.1 billion parcels in 2021. However, the value of the Polish CEP market at the level of PLN 17 billion makes us take it seriously and carefully follow the directions of its development. - Damian Kołata, Head of Industrial & Logistics Poland, Head of E-commerce CEE at Cushman & Wakefield
Modern logistics facilities remain crucial
The report "Polish CEP 2022" shows that in the near future - despite the economic crisis and tensions in the international arena - the intensive development of the e-commerce and CEP industries will remain at a high level. The forecasted increase in terms of value and volume also means the need for operators and e-retailers to secure appropriate warehouse and logistics facilities. In this context, facilities that stand out both in terms of technology and understanding of the needs and expectations of future tenants will gain more and more importance.
- The current and expected increases in the CEP industry are constantly driving the development of city logistics. Warehouse spaces located in strategic locations within urban agglomerations (City Flex in the 7R product line) significantly increase the efficiency and flexibility of logistics operations at the delivery stage, the so-called last mile, constituting a natural complement to peripherally located logistics parks. Currently, facilities dedicated to the e-commerce industry account for nearly 7.5 million sq m. warehouse space in Poland, i.e. over 30 percent. total supply. Compared to the status from 2019, this is an increase by as much as 84%, which indicates a clear upward trend. - Joanna Ociepka-Wojciechowska, Regional Leasing Director at 7R
Joanna Ociepka-Wojciechowska adds that aspects such as: attractive location or easy access to strategic transport infrastructure are just some of the distinguishing features of 7R facilities.
- In addition to them, we offer our tenants technologically advanced spaces that effectively support their business and help to constantly improve their operating results, while caring for the environment - Joanna Ociepka-Wojciechowska, Regional Leasing Director at 7R
The report can be downloaded here: https://lastmileexperts.com/reports-case-studies/