The Challenge of Urban Delivery and City Logistics

THE CHALLENGE OF URBAN DELIVERY AND CITY

Digital Retail Urbanisation Sustainability

• “Channel Shift” into the • Population numbers and • Government policy online and direct to density are increasing in and intervention consumer channels is a all major UK • Sustainable activity retail megatrend conurbations becoming mandated • Rapid and sustained • The need for residential • Developing growth of home delivery development can infrastructure to volumes across all squeeze out retail and support new service speeds logistics space technology • High demand to serve • More people and more • Geographical zones urban areas and cities – home delivery increases and enforced vehicle the most densely traffic congestion specification populated areas • Existing road • More multi-channel; both infrastructure is “fixed” an online offer and a and cannot easily offer store estate more capacity • More participants – marketplaces and the More Distributed circular economy Faster Order Management Channel Shift More Ship from Store Faster Product Covid-19 Impact Sector Evolution Big consumer demand needs a complex network URBAN DELIVERY AND CITY LOGISTICS § § § § § § entertainmentvenues retail Non In in “Clickand Collect” pick up either sameday homeFaster delivery, including consolidatedparcel deliveries increasedlevel nonof Homedelivery oroffice delivery; increasinglymulti Urbanconsumption has become Consumer Demand - - storeorvia athird party storepurchase - restaurantsand - channel - § § § § § § § § Crosssectoropportunities Infrastructure Zonesand peak times constraints Existingproperty and real estate Accessand egress restrictions Roadnetwork capacity Communityimpact sustainability Environmentalpolicy and Urban Network Characteristics 3 © Wincanton plc 2018. All rights reserved CITY CENTRE RETAIL PARKS Challenges and Opportunities

Leverage infrastructure!!

Restrictions on delivery, Online to Offline (O2O) Strategy storage, access and egress Inventory Channel Shift Investment and re-purposing of and to digital availability drives away property to create last mile hubs challenges footfall or consolidation centres

Off-peak or key holder delivery solutions New Aging and less Technology desirable retail makes it much Supercharge inventory accuracy units easier to shop and availability, via investment in from home technology

Operational innovation ð micro fulfilment, automation for small Discount and Consumers spaces and hyper local delivery mono-channel prefer Online retailer stores or Click and Collect Increasing number of Less empty retail Covid-19 Impact Physical Retail units Stores

© Wincanton plc 2020. All rights reserved The Three Cs SOLVING THE CHALLENGES Convenience Covid - 19 Consolidation Impact Evolving over the next 6 Business Response Business months? Collaboration 5 © Wincanton plc 2020. All rights reserved THANK YOU THANK [email protected] eFulfilment and Home Development, of Head Andrew Turner