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Will Your Wholesale Club Store Become a Fulfillment Center?

One club company plans to downsize its real east estate footprint, converting a fraction of stores into e-commerce fulfillment centers. GlobeSt.com speaks with CBRE’s Kurt Strasmann about what this means for retail CRE.

Kurt Strasmann Strasmann: “When you send product back or order something, the company would like you to physically go to the store to pick it up that same day because more times than not, you will spend more money there.”

NEWPORT BEACH, CA—You may have heard that your neighborhood wholesale-club store could either be going away or turning into a fulfillment center for online orders. According to a recent report from CBRE, one major membership-only wholesale retail club has announced its plan to downsize its real estate footprint across the US, preparing for the shift away from brick-and-mortar locations in favor of online sales.

CBRE says of the 60 locations to close, 10 will be transformed into e-commerce fulfillment facilities, and the three locations in Southern California are ideal for e-commerce conversion based on key attributes such as freestanding construction, proximity to established industrial locations and excellent e-commerce demographics.

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Carrie Rossenfeld

Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

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