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JLL: Delivery to refrigerated lockers may become widespread in urban areas

Released at: 13:44, 24/09/2019

JLL: Delivery to refrigerated lockers may become widespread in urban areas

Photo: JLL Vietnam

Latest report notes that boom in online shopping leads retailers and logistics providers to seek new ways to deliver orders.

by Ngoc Lan

Refrigerated lockers for food and grocery orders may become common fixtures in urban areas around Vietnam in the future, according to a JLL report released on September 23.

The report noted that the boom in online shopping leads retailers and logistics providers to look for new ways to deliver orders as quickly and efficiently as possible. Parcel lockers or store pick-up options are among the latest delivery options for shoppers. 

For store pick-up, shoppers can visit the nearest store for their package after checking out online. For parcel lockers, shoppers will receive a QR or SMS code upon checkout that will open the locker once the parcel is delivered.

Mr. Stephen Wyatt, Country Head of JLL Vietnam, said that the accelerated growth is both good and bad news for retailers, who are in need of better delivery options to tackle the challenges of last mile deliveries from warehouses to homes and offices. “Trying to deliver packages to customers who aren’t home can cause delays on delivery routes, while getting orders to individual addresses often means putting vehicles on the roads before they’re full, raising costs and contributing to city center congestion and air pollution,” he added.

However, although they are a familiar sight in many other countries, lockboxes are not widely available in Vietnam. 

According to JLL’s data, the number of apartments in Ho Chi Minh City has increased from 67,200 to 180,000 in the last five years, for growth of 190 per cent growth from 2014 to the second quarter of 2019. “For landlords, providing the convenience of parcel lockers could be an additional perk that attracts commercial and residential tenants, especially as online shopping continues to grow,” the report noted.

A good location for lockers depends on retailers’ customer profiles - how frequently they order and where they live. Mr. Wyatt said this is where big data can provide insight into the most effective locations. What’s key is that customers can pick up the parcel along their usual journey, without a detour. Furthermore, lockers need to be in secure locations with good surveillance to minimize the risk of theft or vandalism.

New residential and mixed-used developments in Vietnam could include a block of lockers, accessible by all residents as well as retailers. Currently, most big packages delivered to residential buildings are left at the door or reception desk. “With hundreds of packages arriving each day for thousands of residents, parcel lockers can minimize the risk of mixing up or losing packages,” he said.

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