THE CHALLENGE OF URBAN DELIVERY AND CITY LOGISTICS © Wincanton plc 2020. All rights reserved Andrew Turner - Head of Development, Home and eFulfilment URBAN DELIVERY AND CITY LOGISTICS Trends and Tailwinds 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 URBAN DELIVERY AND CITY LOGISTICS Big consumer demand needs a complex network Urban Network Consumer Demand Characteristics § Urban consumption has become § Environmental policy and increasingly multi-channel sustainability § Home delivery or office delivery; § Community impact increased level of non- consolidated parcel deliveries § Road network capacity § Faster home delivery, including § Access and egress restrictions same day § Existing property and real estate § “Click and Collect” pick up either constraints in-store or via a third party § Zones and peak times § In-store purchase § Infrastructure § Non retail - restaurants and entertainment venues § Cross sector opportunities © Wincanton plc 2018. All rights reserved 3 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 SOLVING THE CHALLENGES The Three Cs Convenience Consolidation Collaboration Covid-19 Impact Business Response Evolving over the next 6 months? © Wincanton plc 2020. All rights reserved 5 Andrew Turner Head of Development, Home and eFulfilment THANK YOU [email protected] © Wincanton plc 2020. All rights reserved 6.