Online shopping

Slowing e-commerce may lead to a glut of warehouses

The pandemic-fueled e-commerce surge is now slowing as more people return to shop in stores, a shift that could affect the amount of warehouse space needed as retailers and markets expand to meet demand.

Several European retailers that only operate e-commerce storefronts have seen consumer demand plummet, leading Zalando and Made.com to warn that profits will fall, according to the Wall Street Journal. reported Friday (July 22).

See also: Ocado Reels in delivery expansion as UK shoppers head to stores

Consumers in the UK are also making less use of delivery services for online grocery orders, leading Ocado to scale back its expansion plans and consider how it will make full use of its new facilities in Bicester. and Luton in England, PYMNTS reported Thursday.

The delivery platform has lost sales during the pandemic due to a lack of warehouse space and is now facing too much as consumers change their habits.

Read more: Delivery company Gopuff cuts 1,500 people and closes warehouses

In the United States, however, online grocery shopping is still a habit people cling to after the pandemic, with nearly 60% more people shopping for groceries online than in person over the past few years. Last 12 months, according to PYMNTS. report, “Satisfaction in the age of e-commerce.”

In the two years of the pandemic, Amazon nearly doubled the number of warehouses it had in the United States and has since closed or killed the launch of 28 hubs or fulfillment centers, the WSJ reported.

Digital sales will still outpace in-store purchases in the longer term, and some retailers have too much inventory, while others will need warehouse space to ward off bigger chain risks, report says. global supply.

Related: Report: The Average Consumer Makes At Least 2 Online Transactions A Day

New research from PYMNTS shows that the average consumer now conducts at least two online transactions every day, with 17% buying retail products online and 17% buying food or groceries online.

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New PYMNTS study: The integration of digital banking

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

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