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Spike in Cyber Monday Sales Boosts U.S. Industrial Market Demand

Spike in Cyber Monday Sales Boosts U.S. Industrial Market Demand

Commercial News » United States Edition | By Michael Gerrity | December 3, 2014 8:17 AM ET



The growing habit of 'point-and-click' online holiday shopping by millions of Americans is a trend that is spurring strong demand for industrial and warehouse space in the U.S. by many online retailers.

Cyber-Monday-Sales-2014.jpgSpencer Levy, CBRE's Americas Head of Research says, "Cyber Monday is no longer a one-day event. Consumers are now spreading their holiday shopping over a 'cyber-week', taking the advantage of online sales that began before Black Friday. Continued strength in online shopping is a trends that bodes well for the U.S. industrial real estate market, as e-commerce companies and Omni-channel retailers will need more space to warehouse and process online shipments."
 
CBRE reports the following data for Cyber-Monday 2014:

  • Online sales over the course of Thanksgiving weekend (Thursday-Sunday) grew 17%1 over 2013, with an average order size of $124.
  • On Cyber Monday, sales grew 8.5% year-over-year, although down from 20.6% growth from 2012 to 2013.
  • During the five-day "Cyber Week" period, online sales were up 12.6%, indicating that consumers are spreading their shopping activity over the course of the holiday season rather than just focusing on a single day.
  • Traditional brick-and-mortar retailers seemed to reap the benefits of adopting omni-channel strategies. On Cyber Monday, department stores recorded 17.9% year-over-year growth in online sales, while the biggest retailer in the U.S., Walmart, reported its best Cyber Monday ever.
  • In response to exploding online sales growth, UPS and FedEx announced that, between them together, they would hire 150,000 seasonal employees--double the number over last year--to meet the increased holiday demand.
  • The growth of e-commerce has had a significant effect on the U.S. industrial real estate market, with more than 35 million sq. ft. leased by e-commerce users in 2014--and at least that much expected in 2015.

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