Commerce set to alter in wake of virus chaos

A SHIFT in short to medium term shopping habits sparked by the coronavirus will generate a race for more space for many eCommerce and thirdparty logistics providers, says m3property director industrial Daniel McGrath.

He said while Covid-19’s impact on the economy was still being assessed shopping habits were changing.

“We’re seeing the development of a trend where some consumers are avoiding public spaces and that includes shopping centres,” Mr McGrath said. “With governments and other organisations cancelling public events and/or banning the attendance of the public this reluctance to attend crowded spaces seems likely to grow at least in the short to medium term.

“It therefore seems quite likely that demand for online shopping is going to increase and that will obviously create greater demand for eCommerce aligned warehousing and transport businesses.’’

Mr McGrath said the shift in consumer behaviour could potentially be one which has the capacity to permanently change online buying habits.

“Australia has been relatively slow to take up online purchasing when compared with say the UK, European, and US markets, but should current market forces continue we may see some of the more obstinate traditionalist consumers change their ways permanently,” he said.

“Such a change will ultimately have a lasting impact on eCommerce-related property market values as a result of increased competition from investors.”