Retail Logistics Market: Global Industry Analysis and Forecast (2024-2030)

Retail Logistics Market Overview:

Retail logistics involve all the inbound and outbound processes that result in the flow of finished goods from a business to the end user. The optimization of a solid retail logistics strategy is key to operating a sustainable direct-to-consumer (DTC) retail business. Stages of the retail logistics process include warehouse receiving, inventory management, fulfilment, and shipping. Every stage of the logistics process is optimized to meet customer expectations around fast, affordable delivery.  Retail logistics operation often requires both labor (both warehouse workers and upper-level management roles, such as a logistics director) and supply chain technology which increases logistics costs significantly. In many cases, DTC brands outsource retail logistics to a third party to save on time and costs.

The report focuses on the Retail Logistics market size, competitor landscape, recent status, and development trends. Furthermore, the report provides a detailed cost analysis and supply chain. The retail Logistics market report shares valuable information about global development status, opportunities, and challenges shortly, as past data analyzed by industry experts which is helpful for needful discussions. Retail Logistics market study offers information about the sales and revenue during the forecast period of 2024 to 2030.

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Retail Logistics Market Dynamics:

Innovations in Technology and Urban Development

Advancements in technology like automation, AI, and IoT are transforming retail logistics. These technologies enhance the management of inventory, the fulfillment of orders, and the processes of delivery, resulting in increased efficiency and decreased costs. Additionally, the rapid expansion of online shopping has greatly raised the need for effective retail shipping and delivery services. The need for quick and dependable delivery services is causing retailers to improve their logistics capabilities to meet consumer expectations.

The growth of urban population and smart city growth are generating fresh possibilities for retail logistics. Enhanced logistics efficiency is achieved through improved infrastructure, such as upgraded roads and advanced warehouse facilities.

Navigating Demand Forecasting and Regulatory Compliance

Predicting customer demand accurately is a major challenge. Incorrect predictions of demand resulted in having too much inventory or not enough, both of which are expensive and harm customer happiness. Logistics operations need to adhere to diverse regulations that differ greatly depending on the location, covering transportation, labour, and environmental requirements.

Additionally, numerous retailers use obsolete logistics systems that do not align well with modern technologies. Incorporating new technologies such as automation, AI, and IoT is both complicated and expensive

Retail Logistics Market Segment Analysis:

By type, the conventional retail logistics segment held a higher share of the Retail Logistics Market. Conventional retail refers to product sales from the store to the end consumer. Many employees, from warehouse personnel to sales officers, from store officers to shipping managers, act as a chain team. It is primarily owing to its established infrastructure and deep-rooted connections with traditional retail chains. The segment encompasses established warehousing, transportation, and distribution networks designed to support brick-and-mortar retail operations. Conventional retail logistics often relies on longstanding relationships with suppliers and distributors, providing reliability and consistency.

Conventional retail logistics include retailers, wholesalers, and logistics service providers. A traditional supply chain consists of several phases, including purchasing, shipping, warehousing, and distribution, all of which are optimized to make sure that products are delivered to physical storefronts promptly and effectively.

Retail Logistics Market Regional Insight:

Asia Pacific held the largest share in 2023 for the Retail Logistics Market.  China, Japan, and India are the largest countries for the logistics markets in Asia.  Indonesia, Vietnam, and Thailand are likely to grow most quickly. APAC as a whole is a key growth engine for global logistics. Global logistics players revisit their Asia portfolios, reconfigure themselves to have Asia-relevant networks, reinforce their local presence in select markets, review their targeted customers, and decide which ones to serve and which respective go-to-market models to adopt. In the fast-changing, competitive business landscape in Asia, the window for harnessing growth and building a leading and sustained market position is quickly narrowing. The different stakeholders in the logistics ecosystem have a variety of strategies at their disposal to help them capture this opportunity.

On the other hand, the APAC region is immensely diverse across cultures, languages, political systems, and legal frameworks. Countries like Japan and Australia are leaders in digital commerce and transport infrastructure, while countries like Thailand and Vietnam are quickly following in their footsteps. For logistics companies operating across multiple markets, it is important to employ standardized solutions that are tailored to local needs. Strong local talent and skilled regional resources enable both localized expertise and regional cooperation across many markets in parallel. In Addition, Retailer infrastructure is important in APAC as well, as the brick & mortar landscape is a bit different than in other parts of the world. APAC countries, aside from Australia and Japan, do not have a lot of brick-and-mortar selling space when compared to the West. Growth in APAC is largely being found online and retailer strategies are taken into account.

• Siam Makro, a leading Thai wholesale retailer, opened its first store in China. Infosys designed and implemented Oracle Retail and EBS on AWS Public Cloud to grow the business across mainland China.

China Eastern Airlines carved out its logistics business, Eastern Air Logistics (EAL), to pilot mixed ownership in the national civil aviation sector and plans an IPO as an integrated logistics service provider to raise about $350 million. SpiceXpress, the cargo arm of the Indian budget carrier SpiceJet, is also reported to be preparing an IPO soon. These companies use the influx of liquidity to make bolder plays in the market.

Retail Logistics Market Competitive Landscape:

1. In June 2022, A.P. Moller–Maersk acquired ResQ to strengthen Maersk Training’s offerings within safety training and emergency preparedness.
2. In December 2022, Darktraco, a company that offers cybersecurity and AI solutions, announced that a considerable number of companies from the United States that operates in the transport and logistics industry had adopted their AI technology services to safeguard themselves from the United States has been included in the list of Companies that adopted their AI technology.
3. In November 2023, Innovation in last-mile delivery solutions gained momentum. Startups offering drone delivery and micro-mobility options for urban areas secured significant funding, indicating a potential shift in how goods reach consumers in the final stage of the journey.

Retail Logistics Market Scope:

Retail Logistics Market Key Players:

1. DSV
2. XPO Logistics, Inc.
3. Kuehne+Nagel International
4. H Robinson Worldwide, Inc
5. Fedex
6. APL Logistics Ltd
7. Nippon Express
8. Schneider
9. United Parcel Service
10. P Moller- Maersk
11. DHL International GmbH
12. C.H. Robinson
13. DB Schenker
14. J.B. Hunt Transport Services
15. Penske Logistics
16. Geodis
17. Agility Logistics
18. Ryder System
19. ArcBest Corporation
20. Echo Global Logistics
21. Lineage Logistics
22. XX Ltd