This month, Amazon announced that it will be opening a new 230,000 sf big box store in the suburbs of Chicago. Half of the store will be consumer-facing, where customers can browse aisles for groceries, household items, and general merchandise, and the other half will serve as a kind of micro-fulfillment center.
Supposedly, the municipality applied a restriction to the lands requiring it to be a consumer-facing store; it can't just be for fulfillment. But it seems that some kinds are allowed.
My understanding is that the "fulfillment" component of the project will allow customers to order (on kiosks throughout the store) certain items "from the back" and have them delivered to the front of the store for checkout. Importantly, it also decouples inventory management and optimizes the back-of-house for online grocery.
This is a big store; bigger than even a Walmart Supercenter. It also sits on a 35-acre site, which means the lot coverage is only around 15%. However, there's also a large stormwater management pond and room for additional pad buildings based on this site plan:
A store this massive is a fascinating signal because it's a clear admission from Amazon that it needs to get its brick-and-mortar strategy right if it wants to compete in grocery. Even after its Whole Foods acquisition, it's only about 3% of the US grocery market, whereas Walmart is sitting at over 20%.
Ten years ago, it did not feel like this would be where we would end up. Retail as a real estate asset class was out of favor. Brick-and-mortar retail seemed destined to be disrupted by e-commerce and drone delivery. But retail evolved and grocery proved to be a unique facet of retail. At least so far.
Cover photo by Brittani Burns on Unsplash
Venture capitalist Fred Wilson wrote a post on his blog today called, Same Day/Same Hour Delivery.
The post is about why he believes that Walmart could get the “most disrupted by the Internet.” And it has to do with the rapid rise of same day and even same hour delivery from ecommerce companies. If you can order it online and receive it within an hour, why bother going to a brick-and-mortar store?
His post reminded me of one I wrote towards the end of last year called, The threat to big box retailing. But since Fred is in the business of making bets on technology companies and he has accumulated a significant amount of wealth doing that, I thought you might like to also hear it from him.
Yesterday news broke that Target is opening a two-storey, 145,000 square foot store at the base of a new mixed-use development in Toronto’s emerging South Core neighborhood. The site is at the north east corner of York Street and Harbour Street. And the larger development, called Harbour Plaza, will include a 35 storey office tower and 2 residential condominium towers at 65 and 69 storeys.
Here’s the location map:
And here’s the site looking east from York Street:
This is going to be huge for Target. The amount of current and proposed density within a short radius of the site is mind boggling. In addition to Harbour Plaza itself, look at what’s planned for 1 Yonge Street.
Plus with Union Station next door, I dare you to try and find a better connected mobility hub in the region. Now all of a sudden that retail radius gets even bigger. I can easily imagine suburbanites picking up a few things before they hop on a GO train (our regional rail system) and head home.
As of right now, they’re also the only game in town, as far as big box stores in the central core are concerned. But I wouldn’t be surprised if we see a competitor emerge alongside the 1 Yonge project. The site is big enough for one and Walmart isn’t going to want to get shut out of the area.
My only hope is that, from an urban design standpoint, the project is able to enliven and give back to Harbour Street. Right now it’s an arterial road with really no redeeming urban qualities. But with the York Street off-ramp being relocated and the park underneath it being expanded, now is the time to really transform the area.
Let’s hope Harbour Plaza does that.
This month, Amazon announced that it will be opening a new 230,000 sf big box store in the suburbs of Chicago. Half of the store will be consumer-facing, where customers can browse aisles for groceries, household items, and general merchandise, and the other half will serve as a kind of micro-fulfillment center.
Supposedly, the municipality applied a restriction to the lands requiring it to be a consumer-facing store; it can't just be for fulfillment. But it seems that some kinds are allowed.
My understanding is that the "fulfillment" component of the project will allow customers to order (on kiosks throughout the store) certain items "from the back" and have them delivered to the front of the store for checkout. Importantly, it also decouples inventory management and optimizes the back-of-house for online grocery.
This is a big store; bigger than even a Walmart Supercenter. It also sits on a 35-acre site, which means the lot coverage is only around 15%. However, there's also a large stormwater management pond and room for additional pad buildings based on this site plan:
A store this massive is a fascinating signal because it's a clear admission from Amazon that it needs to get its brick-and-mortar strategy right if it wants to compete in grocery. Even after its Whole Foods acquisition, it's only about 3% of the US grocery market, whereas Walmart is sitting at over 20%.
Ten years ago, it did not feel like this would be where we would end up. Retail as a real estate asset class was out of favor. Brick-and-mortar retail seemed destined to be disrupted by e-commerce and drone delivery. But retail evolved and grocery proved to be a unique facet of retail. At least so far.
Cover photo by Brittani Burns on Unsplash
Venture capitalist Fred Wilson wrote a post on his blog today called, Same Day/Same Hour Delivery.
The post is about why he believes that Walmart could get the “most disrupted by the Internet.” And it has to do with the rapid rise of same day and even same hour delivery from ecommerce companies. If you can order it online and receive it within an hour, why bother going to a brick-and-mortar store?
His post reminded me of one I wrote towards the end of last year called, The threat to big box retailing. But since Fred is in the business of making bets on technology companies and he has accumulated a significant amount of wealth doing that, I thought you might like to also hear it from him.
Yesterday news broke that Target is opening a two-storey, 145,000 square foot store at the base of a new mixed-use development in Toronto’s emerging South Core neighborhood. The site is at the north east corner of York Street and Harbour Street. And the larger development, called Harbour Plaza, will include a 35 storey office tower and 2 residential condominium towers at 65 and 69 storeys.
Here’s the location map:
And here’s the site looking east from York Street:
This is going to be huge for Target. The amount of current and proposed density within a short radius of the site is mind boggling. In addition to Harbour Plaza itself, look at what’s planned for 1 Yonge Street.
Plus with Union Station next door, I dare you to try and find a better connected mobility hub in the region. Now all of a sudden that retail radius gets even bigger. I can easily imagine suburbanites picking up a few things before they hop on a GO train (our regional rail system) and head home.
As of right now, they’re also the only game in town, as far as big box stores in the central core are concerned. But I wouldn’t be surprised if we see a competitor emerge alongside the 1 Yonge project. The site is big enough for one and Walmart isn’t going to want to get shut out of the area.
My only hope is that, from an urban design standpoint, the project is able to enliven and give back to Harbour Street. Right now it’s an arterial road with really no redeeming urban qualities. But with the York Street off-ramp being relocated and the park underneath it being expanded, now is the time to really transform the area.
Let’s hope Harbour Plaza does that.
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