Logistics assist Charleston’s retail success
- The Charleston retail market continues to tighten as core shopping center vacancies are filled.
- The Charleston market weighted rental rate is lower this quarter because the market is tight and the remaining available space is of lesser quality.
- As retail changes, so will retail shop needs and desired locations.
How retail is refashioning using logistics
Charleston is opening the flow of merchandise from the producer to the consumer through the Port of Charleston and the inland port in Greer. While logistics has always been tied to the industrial market, it is now helping to shape the new face of retail. As retailers compete with e-commerce distributors, they are altering their traditional business model in order to succeed.
The retail market is adapting in the following ways: retailers are saving money by storing their inventory off-site; shop owners are shortening the supply chain and increasingly serving as fulfillment centers; and vacant mall spaces are being converted into a hybrid of retail/services and industrial buildings. All three factors are pairing the retail and industrial markets and access to multiple logistic networks may now play a larger part in the retailer location process.
Traditionally, store owners chose shop locations with the idea that the consumer could easily access their shop; now, the same store owner needs to be able to reach the customer within a short delivery period wherever the customer deems suitable. These changes do not dictate the death of retail, but rather an opportunity for retail to adapt and retain consumer satisfaction through relocation, distribution expansion and enhanced delivery options.
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