Warehouse space in Bahrain is in huge demand as the pandemic-driven surge in online sales has sent companies scrambling for places to store and deliver goods to consumers, a business leader claims.
Bahrain Bloc president MP Ahmed Al Salloom, who is also a Bahrain Chamber of Commerce and Industry (BCCI) board member, said several clothing, apparels, accessories, furniture and stationery outlets were changing the way they operate.
“We have been receiving several calls from businesses looking for warehouses so that they can close down their outlets and save on costs, rents and other operational expenses,” said Mr Al Salloom.
“Warehouses across the country had been fully leased out since the pandemic broke out. Now, as Covid-19 restrictions have been extended until June 25, many more businesses have decided to close shop and shift their whole operations online.
“There are great opportunities. Many customers have already forgotten about actually going out shopping. They can do everything virtually without wasting time trying to find a car parking space, waiting in a long queue to pay, or risk coming into contact with anyone.
“Even if people start returning to malls and shopping centres, I predict the numbers of shoppers will be much lower than before the outbreak of Covid-19.”
Amidst a shortage of ‘big-box storage space’ Mr Al Salloom, who is also chairman of the Bahrain Small and Medium Enterprises Development Society, says innovative businesses are turning their showroom spaces into mini warehouses.
Employees are also adapting to the ‘new normal’, he suggests, by being more flexible when it comes to working practices.
“Businesses have seen demand grow for online shopping so they have started ‘recycling employees’ to do other jobs related to warehousing, picking up calls and responding to messages, sorting, packaging and delivering.
“So there are no worries about Bahraini employees losing their jobs by these changes, in my opinion.”
Mr Al Salloom, who is currently on official business in the UK, added that his major concern over the expanding e-economy was a likely devaluing of real estate and shops.
“Malls have to consider new business models too, perhaps attracting medical clinics, health spas and beauty parlours, amongst other concepts,” he said.
“Even dining-in restaurants have seen customers shifting towards food trucks and open spaces – this adds to the woes faced by malls, nowadays.”
Meanwhile, Southern Municipal Council chairman Bader Al Tamimi, has called for more land to be allocated for warehousing. “We need government plots to be made available,” he said.
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