ecommerce surge triggers demand purpose built spaces

Covid-Fuelled eCommerce Surge Triggers High Demand for Workit Purpose-Built Spaces

by Steph

Unprecedented growth in eCommerce creates demand for Workit Spaces to expand and launch largest single eCommerce hub in Australia, despite supply chain issues. There’s no doubt it’s been a turbulent time for eCommerce businesses as they continue to deal with supply chain disruption. But rather than diminish or dampen consumer sentiment, online shoppers are simply adapting: hunting for year-end deals earlier than usual – hoping to purchase Christmas gifts early and avoid disappointment with shipping delays. As more consumers were driven to online shopping in widespread lockdowns, monthly online retail sales have never been higher:

Online retail sales hit $4,196.2 M in August – up 16% from July (ABS).

This was the highest historical monthly value, overtaking Christmas months (Nov + Dec) of previous years. The recent disruptions to Australia’s logistics and supply chain industry provides a prime opportunity for new innovators and disruptors like Workit Spaces to expand its purpose-built coworking hubs. Workit also recently launched SKUTOPIA, a software platform enabling same day delivery to online shoppers in Sydney, with urban robotics fulfilment centres coming early next year. Talea Bader, MD and Co-Founder of Workit Spaces said today “The recent disruptions to the logistics industry highlights the fact that our infrastructure is not ready to accommodate the new appetite of Australian consumers for online shopping and their expectation to receive the products within hours of ordering. “Workit Spaces, through its eCommerce Hubs, SKUtopia software platform and robotics fulfilment centres is positioned to disrupt this space in Australia and globally.” The recent disruptions and the fast approaching busy season is causing a panic to online merchants, leaving them scrambling to find alternatives to traditional fulfilment centres and courier services. This has created significant demand for Workit Spaces and SKUtopia services. “Post lockdown, countries such as the US and UK confirm that while some demand will shift back to bricks and mortar, the sector will continue to grow steadily” says Bader. Workit Spaces has backed the continued growth in eCommerce – extending their primary Bourke Rd Sydney Hub from 3,000sqm to 10,000sqm, which is now proudly the largest single eCommerce hub in Australia. Co-founder, Emily Townsend believes eCommerce hubs will only grow as companies move away from traditional locked-in leases, favouring a flexible option. “Offering space isn’t enough”, says Townsend. “eCommerce founders are searching for services to facilitate the growth of their business, with a need for innovation in software and robotics to complete the journey”. Purely demand driven, the Bourke Rd Hub extension which opened in September, was at 30% capacity before construction finished. Members new and old jumped at the expansion, including Floraly, Good and Fugly and Mon Purse. The combined offering of Workit purpose built spaces and SKUtopia software has proven attractive for eCommerce businesses wanting to improve their shipping experience and backend operations. The new extension will also feature a dedicated retail area for eCommerce businesses seeking exposure in busy Alexandria.