Fulfillment hubs might be a lucrative way of optimizing e-commerce consumer experiences in the delivery stage. Referred to also as "dark stores," these types of centers are popping up throughout North America to satisfy online demand—which is arguably exponentially higher during the COVID-19 pandemic.
Bed, Bath & Beyond is another megastore that is turning to fulfillment hubs to increase its profits. In mid-April, the company announced that 25% of its locations in the US and Canada will be turned into "regional fulfillment centers," focusing on "using vast inventory resources to assign orders locally and deliver quickly."
"We are executing a clear plan to manage our business efficiently and effectively through the coronavirus pandemic, prioritizing the health and safety of our customers and teams," Mart Tritton—president and CEO of Bed, Bath & beyond—shared.
Dedicated Fulfillment Hubs
Bed, Bath & Beyond Introduces Regional Fulfillment Centers
Trend Themes
1. Fulfillment Hubs - The trend of using fulfillment hubs to optimize e-commerce consumer experiences has become more popular during the COVID-19 pandemic.
2. Regional Fulfillment Centers - The trend of using regional fulfillment centers to assign orders locally and deliver quickly is increasing among retail megastores.
3. Dark Stores - The trend of using dark stores as fulfillment hubs to satisfy online demand is growing throughout North America.
Industry Implications
1. Retail - The retail industry is using fulfillment hubs as a way to meet the increased demand for e-commerce during the COVID-19 pandemic.
2. Logistics - The logistics industry has an opportunity to innovate by creating new and more efficient fulfillment hub models that meet the specific needs of retailers.
3. Technology - The technology industry can provide solutions to help retailers efficiently manage their fulfillment hubs and streamline their operations.