Global Retail Logistics Market Size, Share & Industry Trends Analysis Report By Type, By Solution, By Mode of Transport (Roadways, Railways, Waterways and Airways), By Regional Outlook, Strategy, Challenges and Forecast, 2021 - 2027

Analysis of Market Size & Trends

The Global Retail Logistics Market size is expected to reach $388.6 billion by 2027, rising at a market growth of 10.5% CAGR during the forecast period.

The systematic process of controlling and ensuring the flow of goods from the source of supply to the buyer is known as retail logistics. A vast range of products is sold by manufacturers, wholesalers, and distributors. This necessitates the systematic planning of diverse commodities' movement till they are delivered to the buyer or consumer. Through effective logistics and added value, retail logistics guarantees that everything is in place to provide superior delivery and service at reduced costs.

Companies can get profit from a wide range of features and benefits provided by logistics software. Orders are received from all sales channels, fulfilled, and tracking, invoicing, returns, and interaction with shipping firms are all possible with this platform. Inventory management is responsible for tracking each manufactured item from the time it enters the supply chain. This feature allows companies to make decisions about where to stock and store products.

Multimodal transportation is becoming more popular as a result of various advantages, including fewer customs restrictions, faster freight processing, and lower per-vehicle expenses. One of the main market trends is the increasing usage of different modes of transportation, which includes the use of ships, trucks, planes, and railcars.

Combining these multimodal modes of transportation can assist reduce inventory expenses while also keeping merchandise costs under control. Multimodal transportation also aids businesses in efficiently transporting goods during outbound logistics while lowering transportation expenses.

COVID-19 Impact Analysis

The ongoing COVID-19 pandemic has wreaked havoc on the global economy in three ways: by hampering profitability, hurting production and demand directly, and depleting financial reserves and cash flows. The COVID-19 pandemic has an equal impact on retail logistics companies. Due to the labor shortage and supply chain problems in the early stages of the pandemic (Q1 and Q2), the industry faced a slight setback. Later, as consumers preferred internet shopping over in-store, the rise in online orders put a burden on retail logistics companies' transportation and logistical services.

Currently, businesses have already begun to try to get back to normal, but they are confronting numerous obstacles on both consumer and operational level. Meeting client expectations in terms of process optimization, growing security concerns about connected networks, increased connectivity challenges, and a drop in industrial and retailing operations are just a few of them.

Market Growth Factors:

Increase in the integration of drone & smart glasses in transportation vehicles

The integration of drones and smart glasses into the transportation vehicles has enhanced pliability and delivery speed, which would positively impact on the growth of the retail logistics market over the projection period. In both urban and rural settings, self-driving vehicles, autonomous vehicles, and trucks are capable of maintaining high reasonableness and same-day delivery.

Increasing Advanced Technology Integration

Artificial intelligence, Blockchain, machine learning, and other modern technologies are expected to be widely implemented in the retail sector. Improved data management, tailored experiences, predictive analysis, and real-time support are all benefits of AI. Other AI applications, such as chatbots, virtual assistants, and others, help retailers stay in touch with their customers. This boosts company profitability by updating customers about promotions and sales.

Marketing Restraining Factor:

Change in Customer Behaviour following the COVID-19 pandemic

After being under complete lockdown for over three months, the retail industry is finding it difficult to get back on track. Retail, like other customer-driven industries, hinges on client behavior and engagement, and it's having trouble keeping up with lockdown-induced changes in customer behavior. Along with declining revenues, retail is suffering from a data shortage.

Type Outlook

On the basis of Type, the Retail Logistics Market is bifurcated into Conventional Retail Logistics and E-Commerce Retail Logistics. The E-Commerce Retail Logistics held a significant revenue share of the Retail logistics market in 2020. The growth is mostly attributable to the global spread of the coronavirus pandemic, which resulted in a surge in sales for e-commerce outlets. In addition, rising internet penetration, combined with benefits such as quick and free returns/exchanges, fast delivery, lower shipping costs, and a plethora of product alternatives, are all contributing to the growth of the segment.

Solution Outlook

Based on the Solution, the Retail Logistics Market is segregated into Commerce Enablement, Supply Chain Solutions, Reverse logistics & liquidation, Transportation Management, and Others. In 2020, the supply chain solutions segment had the highest revenue share, and this dominance is likely to continue during the forecast period. On-time delivery is enabled by the supply chain, which also improves omnichannel operations, personalizes kitting and order fulfillment, and efficiently processes customer returns.

Mode of Transport Outlook

By Mode of Transport, the Retail Logistics Market is segmented into Railways, Airways, Roadways, and Waterways. In 2020, the roadways segment collected the highest revenue share of the overall Retail Logistics Market. The large percentage is due to the increased need for roadway vehicles for long-distance retail product transportation, particularly in domestic regions. It also has a large carrying capacity, making it a better choice. Moreover, a number of government measures encourage sector growth.

Retail Logistics Market Report Coverage

Report Attribute	Details
Market size value in 2020	USD 205.3 Billion
Market size forecast in 2027	USD 388.6 Billion
Base Year	2020
Historical Period	2017 to 2019
Forecast Period	2021 to 2027
Revenue Growth Rate	CAGR of 10.5% from 2021 to 2027
Number of Pages	229
Number of Tables	374
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
Segments covered	Type, Solution, Mode of Transport, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Increase in the integration of drone & smart glasses in transportation vehicles Increasing Advanced Technology Integration
Restraints	Change in Customer Behaviour following the COVID-19 pandemic

Regional Outlook

Based on the Region, the Retail Logistics Market is analysed across North America, Europe, APAC, and LAMEA. In 2020, the Asia Pacific dominated the Retail Logistics Market with the highest revenue share. Due to the significant expansion of e-commerce and the availability of a huge consumer base for retail products, the area is expected to maintain its dominance during the projection period. India, Japan, China, and Australia are among the top ten item exporters, accounting for a significant share of worldwide retail e-commerce sales. As a result, the region's e-commerce industry's outstanding development prospects are the key drivers of regional market expansion.

Free Valuable Insights: Global Retail Logistics Market size to reach USD 388.6 Billion by 2027

KBV Cardinal Matrix - Retail Logistics Market Competition Analysis

The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; A.P. Moller - Maersk A/S, FedEx Corporation and Deutsche Post DHL Group are the forerunners in the Retail Logistics Market. Companies such as Kuehne + Nagel International AG, United Parcel Service, Inc., DSV A/S are some of the key innovators in the Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Kintetsu World Express, Inc. (APL Logistics Ltd.) (Kintetsu Group Holdings Co., Ltd.), A.P. Moller - Maersk A/S, DSV A/S, Deutsche Post DHL Group, FedEx Corporation, Kuehne + Nagel International AG, Nippon Express Co., Ltd., XPO Logistics, Inc., United Parcel Service, Inc., and C.H. Robinson Worldwide, Inc.

Recent Strategies Deployed in Retail Logistics Market

» Partnerships, Collaborations and Agreements:

• Dec-2021: A.P. Moller - Maersk signed a long-term strategic partnership with Li & Fung, the world's leading supply chain solutions partner for consumer brands and retailers, and its affiliates. This partnership would allow the two companies to use their respective resources and worldwide networks to develop a wide range of end-to-end global supply chain services.
• Nov-2021: DSV extended its logistics agreement with New Balance, an American sports footwear and apparel brand. Following this, DSV tripled the volume stored and distributed for New Balance in EMEA. The new setup is designed to ensure a high capacity as well as a flexible shuttle system for storage and retrieval, allowing the millions of extra pieces of merchandise that DSV will be managing for New Balance to be efficiently distributed from the warehouse to all parts of Europe.
• Oct-2021: C.H. Robinson joined hands with SPS Commerce, the world’s leading retail network. The collaboration would assist omnichannel retail businesses to navigate a busy holiday season and challenging supply chain conditions. Moreover, the collaboration would make the shipping process simpler, affordable, and rapid by connecting SPS Commerce Fulfillment's Carrier Service LTL directly into Robinson’s Navisphere platform, which provides access to the biggest less-than-truckload (LTL) network in North America and competitive rates for more than 95,000 retail suppliers.
• Sep-2021: FedEx entered into a multi-year partnership with Salesforce, an American cloud-based software company. The partnership would combine Salesforce Commerce Cloud and Salesforce Order Management with innovative capabilities from FedEx and ShopRunner, its e-commerce platform and subsidiary. Through this integration, the two companies would offer the speed, control, and economies they require to assist them in surpassing those expectations.
• Jul-2021: FedEx Express, a division of FedEx Corp. signed equity and commercial agreements with Delhivery, a leading logistics, and supply chain services company in India. Following the agreement, the two companies would leverage each other's expertise in exploring India's global trade potential.
• Jan-2021: C.H. Robinson formed a partnership with SAS, a world-renowned data analytics company. The partnership would redefine the way worldwide supply chains work as they get extremely complicated. Moreover, the partnership would mitigate the issue by developing a new kind of solution, an end-to-end supply chain solution that integrates inventory and demand signal data with real-time transportation data.
• Jun-2021: United Parcel Service formed a partnership with ParcelHub, a multi-carrier shipping and eCommerce customer services solution. Following this, UPS would expand its retail presence in Malaysia to capture and fulfill the regional increasing e-commerce and logistics demands.
• Dec-2020: XPO Logistics entered into a partnership with La Palette Rouge (LPR), the leading provider of pooled pallets in the fast-moving consumer goods (FMCG) and retail sectors in Europe. Following this, XPO’s would expand their agreement with LPR, a division of Euro Pool Group, to two decades.

» Acquisitions and Mergers:

• Dec-2021: Maersk signed an agreement for the acquisition of to acquire LF Logistics, a Hong Kong-based contract logistics company. Through this acquisition, the company would become empowered to enhance its critical capabilities in APAC to accelerate long-term growth for customers.
• Sep-2021: A.P. Moller – Maersk took over HUUB, a Portuguese cloud-based logistics start-up, specialized in technology solutions for B2C warehousing for the fashion industry. Following the acquisition, Maersk would leverage the advanced capabilities and talent of HUUB to significantly expedite its omnichannel offerings
• Sep-2021: United Parcel Service took over Roadie, a same-day delivery startup, looking to speed service and expand into atypical parcels such as oversized packages and perishable goods. Following this, Roadie would run under its name as a separate company, and packages won’t cross over between the startup and UPS’s conventional network.
• Aug-2021: A.P. Moller-Maersk completed the acquisition of Salt Lake City-based Visible Supply Chain Management, a business-to-consumer (B2C) logistics company focused on parcel delivery and fulfillment services. The acquisition would integrate the operating models and value proposition of Visible SCM and B2C Europe to allow their customers to constantly create their e-commerce offering, hence increasing the scope and potential of the strategic partnerships.
• Aug-2021: DSV acquired Global Integrated Logistics (GIL), the freight forwarding and contract logistics division of Agility Logistics. The acquisition of GIL’s warehousing capacity would be a robust inclusion to the DSV Solutions division, which manages contract logistics services for a range of industries including automotive.
• May-2021: C.H. Robinson took over Combinex Holding (Combinex), one of the fastest-growing forwarders in the Benelux region, specializing in transport services for dry, fresh, and frozen goods. Following the acquisition, the company would bolster its current presence in Europe, specifically our presence in Western Europe.
• May-2021: Kuehne+Nagel took over Apex International Corporation, one of Asia’s leading freight forwarders. Through this acquisition, the two companies would provide their customer with an excellent value proposition in the competitive Asian logistics industry, particularly in e-commerce fulfillment, hi-tech and e-mobility.
• Dec-2020: FedEx Corp. acquired ShopRunner, the e-commerce platform that directly connects brands and merchants with online shoppers. Following this acquisition, ShopRunner’s capabilities would support and expand the FedEx e-commerce offering and develop an increased value for brands, merchants, and consumers.
• Sep-2020: NIPPON EXPRESS acquired the complete equity interests of MD Logistics and MD Express through the subsidiary, Nippon Express USA. Following this, the company got domestic logistics functions in the United States, which accounts for about 40% of global pharmaceutical demand and is the biggest consumer goods market in the world.
• Apr-2020: A.P. Moller - Maersk took over Performance Team, US-based warehousing, and distribution company. The acquisition would expand the capabilities of the company as an integrated container logistics company, providing end-to-end supply chain solutions to its customers.
• Mar-2020: C.H. Robinson took over Prime Distribution Services, a leading provider of retail consolidation and value-added warehouse services in North America. Following the acquisition, Prime would get the retail consolidation business and brings additional scale, capabilities, and expertise of C.H. Robinson.

» Product Launches and Product Expansions:

• Jun-2021: DHL introduced Supplier Direct Fulfillment. Through this, the company aimed to allow the retailers to enhance their online presence by increasing their range of large items like furniture, beds, and kitchens, without investing in additional stockholding. With this new service, retailers can provide consumers with a similar home delivery proposition for additional ranges from other suppliers as they do for their own stock, enabling a streamlined brand experience.
• Jan-2021: APL Logistics introduced Logistics SuperSuite Plus (LSS+), the new version of APL Logistics’ visibility and reporting platform. In addition, LSS+ is a dynamic redesign of the SeeChange and Logistics SuperSuite (LSS) solutions, that covers data management, and visibility. The "+" denotes the addition of additional functionality that we anticipate will be important in the supply chain's future.
• Aug-2020: Maersk rolled out Maersk Flow, a digital platform that provides customers and their partners with everything they need to take control of their supply chain, from the factory to the market. Moreover, the solution allows transparency in critical supply chain processes and facilitates the planned execution of the flow of goods and documents.
• Jun-2020: DSV introduced e-Commerce Solutions, a wide range of e-commerce services for shippers that serve end customers directly. Moreover, the new service combines a standardized warehousing procedure, off-the-shelf automation concepts, IT integration, and implementation.
• Apr-2020: Kuehne + Nagel introduced eShipAsia, an online logistics platform allowing Intra-Asia shippers to enhance every shipment on the basis of the route, transit time, and cost instantly. Through eShipAsia, shippers are connected to 20 countries, and can immediately compare sailing schedules and rates between 2,220 port pairs, 7,500 service loops, and 54 underlying carriers.

» Geographical Expansions:

• Feb-2021: DHL expanded its geographical footprint by establishing a drive-up, mobile pop-up retail store in Woodbridge, Virginia. The new store is situated at the Potomac Mills shopping center and would offer a drive-up window for a safe, easy-to-use shipping option for customers.
• May-2020: DSV expanded its geographical footprint by establishing a new contract logistics facility in Edison, New Jersey. In addition, the latest 10,000 square meter distribution center would provide various logistics services. Moreover, these two DSV units would support the company’s present network of 26 locations in the USA.

Scope of the Study

Market Segments Covered in the Report:

By Type

• Conventional Retail Logistics and
• E-Commerce Retail Logistics

By Solution

• Supply Chain Solutions
• Commerce Enablement
• Transportation Management
• Reverse logistics & liquidation and
• Others

By Mode of Transport

• Roadways
• Railways
• Waterways and
• Airways

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Kintetsu World Express, Inc. (APL Logistics Ltd.) (Kintetsu Group Holdings Co., Ltd.)
• A.P. Moller - Maersk A/S
• DSV A/S
• Deutsche Post DHL Group
• FedEx Corporation
• Kuehne + Nagel International AG
• Nippon Express Co., Ltd.
• XPO Logistics, Inc.
• United Parcel Service, Inc.
• C.H. Robinson Worldwide, Inc.