LOW STOCK IN EXPENSIVE RENTAL AREAS IN VALENCIA

Personal thoughts

I am from Valencia, and before Covid-19 changed our lives I used to go to the cinema once per week, at the ABC cinemas in Calle Colón in the center of Valencia. When I left the cinema at midnight, I realized that the street was plenty of trucks, unloading mercancy to all the shops of the street.

Analyzing the rental price

First of all, I start doing research about the prices of the rental in Calle Colon and surroundings. The Colon street or “Golden Mile” is the prime zone in Valencia, with 80 €/m2/month to 130 €/m2/month. The avarage surface of the commercial establishments goes since 200 to 400 square meters. For example, to understand the dimension of the number, If you have a store in Colon street with 150 m2 you are paying 15.750 €/month only in the rent.

Decentralized logistic centers / Short restock cycles

All these shops used to have a logistic center in other part of Valencia, commonly in villages near to the city. The price of the square meter in this zones could be 5 times lower than in the city center.

All things considered, it is more profitable for them to pay more to the transport companies to restock two or three times per week. They cannot afford to store many items in their commercial facilities. That facts explain that the majority of the nights Colon street is full of trucks doing unload task to all the stores.

DRUNI example

This is a perfumery store, is allocated near to the Colon street, in an expensive zone too. I was there a few months ago, and I realized that in the stores shelves there was only 2 or 3 items of each cologne.

This store have the logistic center in Alberic, a small village in the south of Valencia. They restock 2 or 3 times per week. With this technique they can offer more vairety of items but in less quantity.

If they run out of a specific product they will check if there are some available in surroundings stores of Druni. This technique allow to have a few but enough product in each store. If you have the bad luck that they do not have the product that you want in any of the near stores, they will ask for the product to the logistic center and in two business days you will have it in the store.

As you can see in the picture, they have many stores in the city center of Valencia, so it is easy to find any kind of druni product.

2 thoughts on “LOW STOCK IN EXPENSIVE RENTAL AREAS IN VALENCIA”

  1. Hello Lucas, I have read your blog the same day you posted it and you know what? Rereading it today is more reflective. So, I must say that you are a good observer, perfect for a logistics enthusiast! The way you observe “logistically” reminds me of Profe Jose’s lecture about pallets/items display at the supermarket, I will not forget the bags of water display! lol). Good job, Lucas!

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