Understanding The Importance Of Macro- And Micro-Fulfillment In Retail

Agree Realty Corporation ADC announced the release of a study on macro- versus micro-fulfillment in the grocery space.

What Happened: Agree Realty is a self-administered and managed real estate investment trust based out of Farmington Hills, Michigan.

As part of a vision to unpack how retailers are boldly innovating to improve service, experience and profitability through fulfillment strategies, Agree Realty commissioned the release of a new whitepaper.

Retailers are looking to rapidly cut down on fulfillment costs and improve profitability, according to Agree. This comes as grocery e-commerce sales are becoming more dominant; by 2025, online market share will be as high as 20%, up from 4% pre-COVID-19, across the U.S. and Canada.

Also highlighted are developments like Kroger Co’s KR partnership with Ocado Group OCDDY over the construction of Centralized Fulfillment Centers, or CFCs, in addition to the implications of growth in micro-fulfillment and Walmart Inc’s WMT part in that.

Why It Matters: Agree Realty is focused on ownership, development, acquisition and management of retail properties net leased to national tenants.

In releasing this study, Agree Realty improves transparency on fulfillment issues for market participants.

Takeaway: “While e-commerce grocery offerings ramp, retailers will continue to refine their model relative to the nexus of profitability and consumer demand,” Agree Realty strategists say.

Photo: Rachel Claire from Pexels.