Online retail is driving demand for logistics in Ireland, claims a new report.
AIB’s Transport and Logistics Outlook report, which focuses on the impact of online retail on the logistics sector found there was a 25% increase in the volume of online retail transactions in the 12 months to the end of February.
Dublin now accounts for 30% of all online transactions in Ireland.
Garrett McClean of CBRE Ireland told the Irish Times:
“Retailers and distributors are under increasing pressure to deliver consumer product and perishables into major global cities, often within narrow timeframes.
“As a result, adequate delivery sites in and around urban population centres are needed to accommodate changing consumer demand patterns.
“This is also the case for Dublin, a city of around 1.3 million inhabitants and the primary logistics and supply chain hub for the rest of the country”
The Irish Exporters’ Association estimates that an additional 15,500 workers will be needed by 2020 to cope with the demand from online shoppers.
Mary Lambkin, Professor of Marketing at the UCD Smurfit School of Business told RTE that the uplift is a result of an increase in disposable income in Ireland:
"The rise in disposable income and the strong consumer spending here is helping all businesses and certainly the retailers. Even the branches of those British retailers are doing better here than they're doing at home in the UK.
Ms Lambkin said that figures indicate a €5 billion online spend in Ireland last year, with a significant amount spent cross-border.
"For a small Irish retailer to be competing against the attraction of that is nearly impossible”, she said.
With a GDP per capita of $64,165 USD, Ireland is among the richest countries in the world, making it a desirable cross-border market for retailers. Brands who wish to sell into Ireland need to consider offering fast, free shipping with easy returns, as Irish shoppers are accustomed to a fast turnaround when shopping from other EU countries or the UK.