Cold warehouses became popular, particularly when Amazon targeted grocery delivery business with its acquisition of Whole Food in 2017 (Stevens, L. & Gasparro, A., 2017, June 16). As Amazon tends to illuminate a promising business area in near future,  this has been a strong trend (Phillips, E. E., 2018, July, 17).

Even before Covid-19 pandemic, online grocery sales grew and cold-storage warehouses are on high demand. Tyson Foods Inc, Kroger Co., Walmart Inc., and FreschDirectLLC are looking for refrigerated warehouses (Phillips, E. E., 2018, July, 17; Fung, E. 2019, December 10).

In Covid-19 Pandemic era, e-commerce sector has been further strengthening, warehouses are getting spotlight. Warehouses are located near city centers with lower rental fees (Wilmot, 2020, August 25). Lineage Logistics LLC and Americold Realty Trust own 63% of the cold-storage warehouses , according to the International Association of Refrigerated Warehouses ( Fung, E. 2019, December 10). If you are looking for a strong and lasting trend, this might be one of food innovation or food business innovation trend.

Cite as:

Rachel Kim (2020, September 4). Why Warehouses are Popular? Is it a short trend or long trend?, The Blue Ocean Management.com, retrieved from: http://theblueoceanmanagement.com

References:

Fung, E. 2019, December 10, Wall Street Journal

Phillips, E. E., 2018, July, 17, Wall Street Journal

Stevens, L. & Gasparro, A., 2017, June 16, Wall Street Journal

Wilmot, 2020, August 25,  Wall Street Journal