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Why The Sam's Club Store-To-Distribution-Center Makeover Is The Shape Of Things To Come

Warren Shoulberg Clearly it won’t be the last, for Sam’s or for retailers in general. With e-commerce now accounting for about 10% of all retail sales — and safe to say on its way up from there — retailers are grappling with the twin problems of what to do with too many stores for a declining physical business and not enough points of distribution for their growing online sales. The store-to-DC transformation would seem to solve both problems at once. OPEX Corporation, a company based in Moorestown, New Jersey, that specializes in warehouse and other systems automation, seems to think so. “Converting retail stores into mini-fulfillment centers is a more cost-effective way to expand the distribution network using existing facilities that are already close to where customers live,” the company says on its website . At least one investment management firm, Case Equity Partners, is out there pitching a business model that combines existing retail centers with distribution center components, calling its creation “shopping fulfillment centers.” All of this activity comes as retailers are increasingly looking to merge their existing parallel inventories that have seen one system for physical stores and another for online sales. Williams Sonoma is just the latest big national retailer to say it is combining the two, but even bigger retailers like Walmart, Macy’s and Target are doing more and more fulfillment out of their existing retail locations, be it through customer pickup or third-party shipping services. Will all of these malls and strip centers, decimated by the changing face of retailing, be reborn as distribution centers to service online? Maybe not all of them, but certainly the metamorphosis of shopping centers to shipping centers is well on its way. The business of retailing is my specialty...and http://immagnolia6vlx8.icanet.org boy is http://trendtiquea9ao.nanobits.org it special.

For the original version including any supplementary images or video, visit https://www.forbes.com/sites/warrenshoulberg/2018/08/17/why-the-sams-club-store-to-distribution-center-makeover-is-the-shape-of-things-to-come/

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