In my May 21 article in Forbes, titled “While the reports are swirling, what does Amazon need from JCPenney?”, I suggested, “Amazon’s interest in some of Penney’s genuine real estate assets is likely to be to create satellite distribution centers, closer to more customers, and to do so financially.”
Adaptive reuse or use of underutilized assets
Frankly, I’m not clairvoyant, we’ve already noticed this film.Almost all primary metropolitan urban centers have an adjacent warehouse district, filled with early-century brick buildings.For the most part, structures exist today just because they had no value.destroying when central and overly “ugly” business districts were erected between the mid-to-late 20th century.Today, those once dying structures have been rehabilitated into high-value multipurpose properties.
It is undeniable that many of our 20th century grocery shopping centers have taken their course and that there is no turning back, today many are fitting virgin shells, to be rebuilt in a way that is none other than the urban warehouses of the past.I suspect some skeptics think you can compare the two.Stores have been changed to a “higher value” usage while “storage store” is precisely the opposite.I’d say yes, yetArray..
Amazon Assessment
In today’s economy, lost time is cash, and Amazon is focusing on “surprising efficiency.”Amazon’s desire to have satellite distribution centers is to bring them closer to its customers, wherever they are.In this way, shortening the “last mile” saving time, money and cutting the carbon footprint, which Amazon is obliged to face.
I also warned in the May article that Amazon has more in its holsters than just smaller distribution centers.Other potential uses of these renovated housings would be other deposits and return sites.COVID-19 has made sidewalk collection a highly desirable way for others to obtain goods successfully and contactlessly.
Imagine the savings Amazon can make by asking your consumers (through your choice) to resolve the costly delivery of the “last mile” by visiting your local Amazon Drive-Up site.A highly automated contactless collection and deposit service (think about boosting banking) can simply start “locating” your Amazon appointments and the time and cash of some deliveries.
Clean up your act
Generation Y, Generation Z, and the soon-to-talk Alpha generation will require Amazon to reduce its dirty reliance on corrugated cardboard, a local collection and depot facility would allow for a more agile implementation of reusable containers.Economic savings and reducing the carbon footprint of those new “Short Sites,” Amazon possibly even a new Sub-Prime subscription to penetrate some other high-value user organization.
Also, don’t be fooled for a moment that Amazon wouldn’t create a small part of a 100,000-square-foot warehouse to create a valuable storefront area to see one of the countless in-store sales concepts.retail or retail/Bezosian services. No matter how the next or final episode of JCPenney goes, Amazon will most likely have a secondary role.
I am the product of an “immersive” education in retail as the son of a mid-century American merchant.I noticed that my father and uncle went from accidental tents to a
I am the product of an “immersive” education in retail as the son of a mid-century American merchant.I realized that my father and uncle went from accidental stores to lopass builders, who have the genesis of my four-decade career as a retail planner, trend forecaster, lecturer and author.I had the wonderful thrill of sharing my ever-changing world concepts of retail with audiences on 3 continents.Lessons learned from the “first days”, as well as from customers, retail legends and replacement agents are recounted in my publication IBPA 2015 RETAIL SCHMETAIL, One Hundred Years, Two Immigrants, Three Generations, Four Hundred Projects.In my current state of indefinite semi-retirement, I manage my LinkedIn group, RETAIL SPEAK, and tame my lifelong love of everything vehicle-related.