The dynamic development of e-commerce in Poland is stimulating demand for industrial and warehouse space. An additional growth factor is the country’s investment attractiveness, which fosters the expansion of existing companies and attracts new foreign players. Why is the Polish warehouse market so attractive to the e-commerce industry?
Jakub Kurek, advisor in the industrial and warehouse real estate department at Cresa in Poland: Poland attracts investment in the e-commerce sector due to still lower labor costs, flexible labor laws, significant improvements in road infrastructure, a good geographical location, and attractive rental costs. The significant growth in local consumption and the increasing popularity of this sales channel are also of great importance.
Poland is a very promising market for the e-commerce industry. Our employees have lower financial expectations than those in France or Belgium, while possessing similar skills. The value of online purchases in Poland in 2016 was approximately EUR 6 billion, while in 2017 it was already approximately EUR 8 billion.
Logistics operators who have previously cooperated with traditional retail chains are expanding their offerings to have the best possible chance of attracting new clients. In turn, developers are becoming increasingly aware of the specifics of the e-commerce industry and are adapting their existing facilities, as well as new projects, to the specific needs of clients. They pay special attention to technological solutions, automation, and robotization of the offered space, which increases efficiency and optimizes processes within the warehouse. Locations within large cities are enjoying growing interest among tenants, which is intended to allow for very fast delivery of orders. Such a solution is referred to as last mile deliveries.
Comprehensive supply chain management forces operators to create a specialized warehouse system and advanced technological and IT infrastructure. In the latter respect, we have witnessed a real revolution. Within a few years, Polish companies have moved from paper-based documentation of warehouse stocks to a situation where the consumer is automatically informed about when their shipment will be delivered and where it is currently located. The changes were so rapid that there are still few companies specialized in e-commerce logistics (i.e., not serving traditional retail chains). Giants entering the Polish market (such as Amazon or Zalando) therefore use their own resources, but the situation is changing dynamically.
The Polish e-commerce investment market will continue to develop very rapidly. Despite dynamic growth over the last few years, the industry’s demand has not been fully met. We therefore assume that over the next 3-5 years, more warehouse and distribution facilities will be built, especially in the vicinity of Warsaw and in central and western Poland. Small and medium-sized enterprises, which until now have used facilities adapted to traditional sales, will also become investors. Cautious forecasts indicate that the pace of sector development will be at the level of 20-30%, and we can expect the value of this market to double in a short time. Logistics operators are of a similar opinion, and this is visible in the pace at which they are expanding their offer. The biggest challenge for them remains shortening the delivery time. The market will undergo further specialization. It is likely that logistics operators will also offer additional services, such as delegating their own employees to help with packing and unloading.
However, the development of technology is on the side of the e-commerce industry. Greater warehouse automation will allow for a further increase in the share of online sales in the entire retail sector. According to the latest data, the share of the e-commerce sector in retail trade in Poland was at the level of 4.3% last year. For comparison, in Germany it was already 14%, and in the UK 17%. These data show the still very large and untapped development potential of the Polish e-commerce market.