Exclusive Q&A: How Same-Day Delivery Is Changing the Retail Market
As the war between online retailers and brick-and-mortar shops wages on, a new trend is emerging in Manhattan: same-day delivery. Bisnow caught up with Eastern Consolidated senior director Brad Cohen, who tells us what type of retailers are offering the service and what it could mean for the real estate footprint these shops will need in the future.
Bisnow: How is same-day delivery impacting the retail experience?
Brad Cohen: Retailers are having to do more to get consumers into the store. Depending on the merchandise, a retailer may have to get creative in order to get consumers into the store.
Bisnow: What does all this mean for the kinds of spaces that retail tenants look for?
Brad Cohen: Retailers still want great space because it gets their brand out there and it's more of a marketing tool. They may not need as much space on the selling floor as they used to, however storage is important.
Bisnow: What about that storage space? How will delivery impact the overall footprint a retailer seeks?
Brad Cohen: Distribution centers are a big part of this. However, in the past when the distribution center would be located further out from the customer, now more than ever it is critical that these distribution centers are closer to the customer.
Bisnow: When did you first notice retailers in Manhattan offering same-day delivery, and what are some retailers that are doing it?
Brad Cohen: Over the past 24 months, several same-day delivery players have entered the market. Google Shopping Express, Instacart, Deliv, Uber and Amazon were some of the first to arrive. They offer same day from retailers such as Whole Foods, Guitar Center, Kohl's, Walgreen's, Costco, Target, and Bed Bath & Beyond.