The global retail logistics market is anticipated to reach $809,690.10 million by 2032, growing from $238,500.00 million in 2022 at a CAGR of 13.5% from 2023 to 2032.
Retail logistics refers to the process of planning, implementing, and controlling the efficient movement and storage of goods, products, and materials within the retail supply chain. It encompasses various activities involved in getting products from manufacturers or suppliers to end consumers through retail channels such as brick-and-mortar stores, online marketplaces, and others.
Increase in urban population leads to a rise in demand for retail goods. This necessitates optimized logistics networks to serve densely populated areas, requiring innovative solutions to handle last-mile deliveries and reduce congestion. Urbanization often leads to higher income levels and changing consumer behaviors, resulting in greater consumption of retail products. This demand encompasses a wide range of products, from everyday necessities to luxury items, driving the need for efficient logistics networks to meet this growing consumption. Furthermore, the need to serve densely populated areas effectively prompts businesses and logistics providers to invest in optimizing their supply chains. This optimization can involve selecting strategic distribution centers, utilizing technology for route optimization, and leveraging data analytics to enhance efficiency.
Fluctuating fuel prices and increasing transportation costs can impact the profitability of retail logistics. These costs are often passed on to consumers, potentially affecting demand for products. Retailers typically operate on thin profit margins. Fluctuating fuel prices can lead to unpredictable cost variations, making it challenging for retailers to accurately budget and plan their logistics expenses. Furthermore, when transportation costs rise, retailers might be compelled to pass on these increased costs to consumers by raising product prices. This can lead to a decline in consumer demand as higher prices could discourage purchasing and result in a negative impact on overall sales.
The concept of reverse logistics which involves the efficient management of product returns, refurbishment, recycling, and disposal, has become increasingly important in the retail industry. Consumers now expect hassle-free return processes. A retailer's ability to offer easy returns and exchanges can greatly impact customer satisfaction and retention. This makes the management of reverse logistics a crucial aspect of the overall customer experience. Companies that excel in reverse logistics can differentiate themselves from competitors. An efficient returns process not only keeps customers happy but also saves costs associated with returns and refurbishment. This cost savings can be passed on to customers or invested in other areas of the business. As environmental awareness grows, retailers are under increasing pressure to handle returned products responsibly. Efficient reverse logistics can reduce waste by refurbishing, repackaging, or recycling returned items, minimizing their environmental impact.
The COVID-19 pandemic has had significant impacts on the market for retail logistics market. Lockdowns, travel restrictions, and factory closures disrupted global supply chains, leading to shortages of products in many retail sectors. The just-in-time inventory system was severely strained, leading to stockouts and delays. With brick-and-mortar stores closed or operating with restrictions, there was a rapid surge in online shopping. This shift to e-commerce led to an increase in demand for last-mile delivery and fulfillment services, putting pressure on existing logistics networks. The increase in online orders led to a surge in last-mile deliveries. Retailers had to adapt quickly to meet the demand, leading to innovations like contactless delivery, curbside pickup, and the use of autonomous delivery vehicles. Lockdowns and safety concerns led to labor shortages in warehouses and distribution centers. This impacted order fulfillment and distribution, causing delays in delivering products to customers. Logistics providers had to implement stringent health and safety protocols to protect their workers. This included measures like social distancing, sanitization, and protective gear, which at times slowed down operations.
The key players profiled in this report include XPO Logistics, Inc., DSV, Kuehne + Nagel International, C.H. Robinson Worldwide, Inc., Nippon Express, FedEx, Schneider, United Parcel Service, APL Logistics Ltd, and DHL International GmbH. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.
Retail logistics refers to the process of planning, implementing, and controlling the efficient movement and storage of goods, products, and materials within the retail supply chain. It encompasses various activities involved in getting products from manufacturers or suppliers to end consumers through retail channels such as brick-and-mortar stores, online marketplaces, and others.
Increase in urban population leads to a rise in demand for retail goods. This necessitates optimized logistics networks to serve densely populated areas, requiring innovative solutions to handle last-mile deliveries and reduce congestion. Urbanization often leads to higher income levels and changing consumer behaviors, resulting in greater consumption of retail products. This demand encompasses a wide range of products, from everyday necessities to luxury items, driving the need for efficient logistics networks to meet this growing consumption. Furthermore, the need to serve densely populated areas effectively prompts businesses and logistics providers to invest in optimizing their supply chains. This optimization can involve selecting strategic distribution centers, utilizing technology for route optimization, and leveraging data analytics to enhance efficiency.
Fluctuating fuel prices and increasing transportation costs can impact the profitability of retail logistics. These costs are often passed on to consumers, potentially affecting demand for products. Retailers typically operate on thin profit margins. Fluctuating fuel prices can lead to unpredictable cost variations, making it challenging for retailers to accurately budget and plan their logistics expenses. Furthermore, when transportation costs rise, retailers might be compelled to pass on these increased costs to consumers by raising product prices. This can lead to a decline in consumer demand as higher prices could discourage purchasing and result in a negative impact on overall sales.
The concept of reverse logistics which involves the efficient management of product returns, refurbishment, recycling, and disposal, has become increasingly important in the retail industry. Consumers now expect hassle-free return processes. A retailer's ability to offer easy returns and exchanges can greatly impact customer satisfaction and retention. This makes the management of reverse logistics a crucial aspect of the overall customer experience. Companies that excel in reverse logistics can differentiate themselves from competitors. An efficient returns process not only keeps customers happy but also saves costs associated with returns and refurbishment. This cost savings can be passed on to customers or invested in other areas of the business. As environmental awareness grows, retailers are under increasing pressure to handle returned products responsibly. Efficient reverse logistics can reduce waste by refurbishing, repackaging, or recycling returned items, minimizing their environmental impact.
The COVID-19 pandemic has had significant impacts on the market for retail logistics market. Lockdowns, travel restrictions, and factory closures disrupted global supply chains, leading to shortages of products in many retail sectors. The just-in-time inventory system was severely strained, leading to stockouts and delays. With brick-and-mortar stores closed or operating with restrictions, there was a rapid surge in online shopping. This shift to e-commerce led to an increase in demand for last-mile delivery and fulfillment services, putting pressure on existing logistics networks. The increase in online orders led to a surge in last-mile deliveries. Retailers had to adapt quickly to meet the demand, leading to innovations like contactless delivery, curbside pickup, and the use of autonomous delivery vehicles. Lockdowns and safety concerns led to labor shortages in warehouses and distribution centers. This impacted order fulfillment and distribution, causing delays in delivering products to customers. Logistics providers had to implement stringent health and safety protocols to protect their workers. This included measures like social distancing, sanitization, and protective gear, which at times slowed down operations.
The key players profiled in this report include XPO Logistics, Inc., DSV, Kuehne + Nagel International, C.H. Robinson Worldwide, Inc., Nippon Express, FedEx, Schneider, United Parcel Service, APL Logistics Ltd, and DHL International GmbH. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the retail logistics market analysis from 2022 to 2032 to identify the prevailing retail logistics market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the retail logistics market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global retail logistics market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Solution
- Commerce Enablement
- Supply Chain Solutions
- Reverse Logistics and Liquidation
- Transportation Management
- Others
By Type
- Conventional Retail Logistics
- E-Commerce Retail Logistics
By Mode of Transport
- Railways
- Airways
- Roadways
- Waterways
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- UAE
- Saudi Arabia
- South Africa
- Rest of LAMEA
- Key Market Players
- XPO Logistics, Inc.
- DSV
- Kuehne + Nagel International AG
- C.H. Robinson Worldwide, Inc.
- Nippon Express Co., Ltd.
- FedEx Corporation
- Schneider
- United Parcel Service, Inc.
- APL Logistics Ltd
- DHL International GmbH
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: RETAIL LOGISTICS MARKET, BY TYPE
CHAPTER 5: RETAIL LOGISTICS MARKET, BY SOLUTION
CHAPTER 6: RETAIL LOGISTICS MARKET, BY MODE OF TRANSPORT
CHAPTER 7: RETAIL LOGISTICS MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the retail logistics market was valued at $238.5 billion in 2022, and is estimated to reach $809.7 billion by 2032, growing at a CAGR of 13.5% from 2023 to 2032.Retail logistics refers to the processes, strategies, and activities involved in managing the movement and distribution of products from manufacturers or suppliers to the final consumers within the retail industry. It encompasses various aspects of supply chain management that are specifically tailored to meet the demands of the retail sector.
The globalization of supply chains in the retail industry has been driven by various factors. Efficient international logistics solutions are indeed crucial for retailers to effectively manage their global operations. Furthermore, globalization opens up new markets for retailers. By sourcing products from different parts of the world they can cater to diverse customer bases and expand their reach. Efficient logistics enable them to serve these markets effectively. Moreover, retailers that can streamline their global supply chains through efficient logistics gain a competitive edge. Quick and reliable delivery of products can lead to an increase in customer satisfaction and loyalty. Furthermore, retailers are increasingly conscious of their environmental footprint. Efficient logistics can help reduce carbon emissions by optimizing transportation routes and modes and contributing to sustainability goals. By diversifying suppliers and sourcing from different regions, retailers can reduce the risk of disruptions in their supply chains. Efficient logistics ensure that they can quickly adapt to changing circumstances.
However, retail logistics relies on having an adequate number of skilled workers to handle various tasks simultaneously. Labor shortages can lead to delays in order processing and delivery which can negatively impact the customer experience. In the competitive retail landscape, customer satisfaction is crucial, and any disruptions caused by labor shortages could result in customer dissatisfaction and potential loss of business. Furthermore, skilled labor shortages can lead to inefficiencies in various aspects of retail logistics. For example, a shortage of truck drivers can result in delayed shipments and longer lead times. Warehouse worker shortages can lead to difficulties in managing inventory, picking & packing products, and maintaining organized storage systems. Supply chain manager shortages can lead to disruptions in coordination and planning.
The use of data analytics and artificial intelligence can provide valuable insights into consumer behavior, inventory management, demand forecasting, and route optimization. Retailers can make more informed decisions and optimize their logistics operations for efficiency. With real-time data analysis, retailers can gain better visibility into their inventory levels across various locations. AI can predict which products are likely to sell quickly and adjust inventory accordingly. This minimizes the costs associated with excess inventory while ensuring that popular products are readily available. Furthermore, AI can optimize last-mile delivery by considering variables like package size, delivery location, and real-time traffic conditions. Retailers can offer more precise delivery time estimates to customers and even explore options like autonomous or drone delivery. Data analytics and AI can provide real-time insights into the entire supply chain and from raw materials to end-customer delivery. This transparency allows retailers to identify potential bottlenecks, anticipate disruptions and make proactive adjustments. These factors are anticipated to boost the market expansion in the upcoming years.
The retail logistics market share is segmented on the basis of type, solution, mode of transport, and region. By type, it is classified into conventional retail logistics and e-commerce retail logistics. By solution, it is classified into commerce enablement, supply chain solutions, reverse logistics & liquidation, transportation management, and others. By mode of transport, it is classified into railways, airways, roadways, and waterways. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the retail logistics market report include XPO Logistics, Inc., DSV, Kuehne + Nagel International, C.H. Robinson Worldwide, Inc., Nippon Express, FedEx, Schneider, United Parcel Service, APL Logistics Ltd, and DHL International GmbH.
The report offers a comprehensive analysis of the global retail logistics market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.
Impact of COVID-19 on the Global Retail Logistics Industry
The COVID-19 pandemic had a significant impact on the retail logistics market. Lockdowns, travel restrictions, and factory closures in various parts of the world disrupted global supply chains. With physical stores closed or operating with restrictions, there was a surge in online shopping during the pandemic. This led to an increase in demand for e-commerce fulfillment centers and last-mile delivery services, putting pressure on retail logistics providers to adapt and expand their capabilities.The need to fulfill a larger number of individual orders placed a strain on last-mile delivery services. Logistics companies had to adapt to the increase in demand for home deliveries, often requiring adjustments to delivery routes, hiring more drivers, and implementing contactless delivery protocols.
Many logistics companies faced labor shortages due to factors such as quarantine measures, illness, and employee safety concerns. This impacted the ability to operate warehouses efficiently and maintain normal delivery schedules. Fluctuating demand patterns and supply chain disruptions made inventory management more complex. Retailers had to find ways to balance stock levels to meet demand while avoiding overstocking.
Key Findings of the Study
Based on type, the conventional retail logistics sub-segment emerged as the global leader in 2022 and the e-commerce retail logistics sub-segment is anticipated to be the fastest growing during the forecast period.Based on solution, the supply chain solutions sub-segment emerged as the global leader in 2022 and the reverse logistics & liquidation sub-segment is predicted to show the fastest growth in the upcoming years.
Based on mode of transport, the roadways sub-segment emerged as the global leader in 2022 and the waterways sub-segment is predicted to show the fastest growth in the upcoming years.
Based on region, Asia-Pacific registered the highest market share in 2022 and North America is projected to be the fastest growing during the forecast period.
Companies Mentioned
- XPO Logistics, Inc.
- DSV
- Kuehne + Nagel International AG
- C.H. Robinson Worldwide, Inc.
- Nippon Express Co., Ltd.
- FedEx Corporation
- Schneider
- United Parcel Service, Inc.
- APL Logistics Ltd
- DHL International GmbH
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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