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Mar 16, 2016

German e-shops increasingly serve their customers from Czech warehouses

n-line merchants leased more than 300 thousand sq. m of warehouse space last year, two thirds of which serve customers of other Western European countries, mainly Germany. In line with this new trend, German e-shops effectively optimize their operating costs without compromising their quality of service. Further growth is expected this year in leasing and investing in the construction of warehouses for the German market.

Third millennium is in the name of online shopping. More people prefer shopping comfortably from home in these hectic times. Almost everything is on offer, from food to clothing, electronics, sports equipment, baby supplies, toys, books and more. Online shops are fundamentally changing consumer behaviour, not only in the Czech Republic, but throughout the world. Massive development of e-commerce is also evident in the retail sector, where online stores are leasing a record amount of warehouses and storage space. The volume of leased warehouses for online stores this year is expected to grow annually from 300 thousand sq. m to 600 thousand sq. m.

"With the growth in online sales volumes, this strategy is becoming increasingly profitable and a necessary step for German online companies amidst growing competitive struggle," says Michal Bezděka, Head of Industrial Agency, CBRE.

The total area of Czech warehouses currently accounts for 5.5 million sq. m. Currently the largest foreign companies warehouse in the Czech Republic is Amazon, which is located about 120 km from the German border. A central warehouse for one of the Germany's largest online supermarkets, Allyouneed.com, is successfully operating in the Pilsen region, while Babymarkt.de has a warehouse in Kadaň. According to analysts, the current demand of German companies is focused mainly on the Prague area, ideally close to the airport, and the Czech-German border region, i.e. around Cheb, Plzeň and Ústí nad Labem. The highest interest is mainly in large storage areas of over 50 thousand sq. m.

"Currently, we have measured the demand of German online retailers for Czech warehousing premises to over 300 thousand sq. m. I see pitfalls and risks in the requirement for constructing large warehouses in a relatively short time frame together with labour shortages," says Michal Bezděka, Head of Industrial Agency, CBRE.











Source: CBRE Research