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Grocery Delivery, Cold Storage Demand Grows Across The U.S.

In response to a booming online grocery market, Walmart plans to expand its grocery delivery service to more than 100 major metros by the end of 2018.


As the grocery delivery market continues to expand, that boom could drive up demand for cold-storage spaces by 35M SF over the next seven years, CBRE reports.

“As e-commerce expands further into the grocery business, the resulting growth of the food supply chain and demand for new, climate-controlled warehouse space could very well be the new opportunity that investors and developers have been seeking,” CBRE Global Head of Industrial & Logistics Research David Egan said in a statement.

Formerly only available in six metros, Walmart's delivery service will reach an estimated 40% of the U.S. population once fully introduced to the new markets, Recode reports.

Several of Walmart’s main competitors, including Amazon with its Prime Now delivery, have rolled out their own grocery delivery services. While Target recently acquired Shipt, Instacart has been busy teaming up with grocery partners like Aldi and Sam's Club to get food to consumers.

Online grocery sales are expected to increase from 3% to 13% of all grocery sales by 2024. States with large populations and agricultural production are anticipated to witness the most demand for cold-storage space. These areas include California, Washington, Florida, Texas and Wisconsin, CBRE reports.