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Chapter 1: Shared Risk

Topics: Fashion, Beauty & Lifestyle Automated Warehouses Digital Logistics Sustainable Supply Chains

From our Whitepaper "Mitigating Risk through 3PL Partnerships"

As the opening piece in Arvato France’s 2026 lighthouse thought-leadership series, this article aims to provide a clear strategic guidance for brands and retailers operating (or wanting to expand) in the French market. Throughout the year we will explore four major themes: Shared Risk, Shared Growth, Shared Market Intelligence, and finally Cost Reduction & Sustainability. In this opening article on Shared Risk, we examine four key risk areas: Human Resources, Investment & Growth, Real Estate, and IT/Forecasting.

How End-to-End 3PL Partnerships Can Help Brands and Retailers Catch Up with Growth in France

In France retail market is shifting rapidly in the second half of 2020's. The e-commerce reached €196.4 billion in 2025 (up 7% year-on-year according to FEVAD's latest figures released in February 2026), with transaction volumes surging 10% to 3.2 billion purchases. The market is firmly on track to surpass the symbolic €200 billion threshold in 2026. One could argue that this puts brand and retailers in a tough spot: they now need to scale operations rapidly while controlling costs and preserving agility.

Still, many organisations continue to manage all logistics risks in-house. Challenges such as labour shortages, high fixed investments, real-estate commitments, and legacy technology are all handled internally.

The smarter approach? Shared Risk through strategic end-to-end 3PL partnerships. By integrating comprehensive logistics services, brands and retailers alike can — and should share operational risk across the supply chain, access truly scalable capacity, and redirect capital toward innovation, marketing and international expansion.

1. Human Resources

From Peak-Season Strain to Flexible, Expert Talent Networks

Recruiting and retaining qualified logistics personnel remains one of the most challenging areas for many French companies, particularly during Black Friday, year-end peaks and summer promotions. The latest France Travail BMO 2025/2026 survey places logistics and transport roles high on the “professions en tension” list, with heavy goods vehicle drivers, warehouse operatives and logistics coordinators among the most difficult positions to fill. Recruitment difficulties affect over 70% of warehouse operators, while the national driver shortage continues to exceed tens of thousands of vacancies.

The financial impact is also significant: extended hiring cycles, overtime costs, agency premiums and training expenses that often surpass €5,000 per new recruit. Quality inconsistencies with temporary staff can also lead to service disruptions that erode customer loyalty.

Through an end-to-end 3PL partnership, these risks are shared from day one. Instead of building and maintaining large in-house teams, brands gain immediate access to Arvato’s multi-client, cross-trained workforce already certified in safety, WMS operation, sustainability protocols and sector-specific handling requirements. Capacity can flex by 30–50% during peaks without fixed headcount obligations, then contract smoothly when volumes normalise.

Partners benefit from Arvato's continuous investment in talent development and retention programmes while avoiding the administrative burden of seasonal contracts, social charges and compliance. In a sector that employs nearly 2 million people across France yet still faces structural shortages, this shared HR model delivers reliability and peace of mind.

2. Investment & Growth

Converting Fixed Costs into Scalable, Demand-Aligned Capacity

High fixed costs and limited scalability continue to constrain many French retailers. Developing proprietary warehousing infrastructure demands tens of millions in capital expenditure, resources that could instead accelerate product development, brand building or European expansion.

By engaging a 3PL partner, companies pay according to actual activity (per unit, per order or per square metre), aligning costs directly with demand. This variable-cost model is especially valuable in France's omnichannel environment, where category volumes can fluctuate more than 35% year-on-year and e-commerce already represents over 11% of total retail sales.

“As brands & retailers face increasingly unpredictable demand curves, the ability to scale without locking capital into fixed assets becomes a decisive competitive advantage,” explains Emeric Crepin.

Shared investment models allow companies to accelerate growth while significantly reducing financial exposure. In today’s environment, agility is no longer optional, it is fundamental to resilience.

Emeric Crepin Managing Director Arvato France

Arvato's hybrid model, combining asset-based facilities with advanced automation such as AutoStore systems and robotic picking, gives clients immediate access to cutting-edge infrastructure and pan-European transport networks without owning any of it. This approach is reflected in the recent award of SNIPES’ full European e-commerce logistics business, set to go live in H2 2026, demonstrating how clients rely on Arvato to absorb infrastructure and scaling risk while enabling rapid growth. Brands keep capital free for what they do best; Arvato handles the complex logistics backbone as one seamless element of its end-to-end offering.

3. Real Estate

Accessing Prime Networks Without Long-Term Lease Commitments

Prime warehouse rents in the Greater Paris Region reached €85/m²/year in H1 2025 (up 5% year-on-year), according to Knight Frank's France Logistics Q2 2025 report. Secondary markets sit at €53–60/m²/year, while long-term leases (typically 9–12 years) reduce operational flexibility when demand patterns shift.

National vacancy stands at 5.8% (4.3 million m² available), yet Class A space in high-demand corridors remains tight. The ZAN law on artificialisation and expanding low-emission zone requirements further complicate new developments and retrofits.

End-to-end 3PL partnerships provide instant access to a national and European network of multi-client, future-proof facilities — without signing restrictive long-term leases. Arvato's strategically located French and cross-border sites allow brands to test new channels, enter adjacent markets or adjust footprints with minimal commitment.

“Real estate decisions used to bind companies for a decade or more,” notes Sandra Teboul.

Today, flexibility is the real asset. Our clients can expand, consolidate, or reposition their logistics footprint in line with market dynamics, without carrying the long-term occupancy risk.

Sandra Teboul Head of Business Development and Solution Design at Arvato France

Shared infrastructure also distributes the cost of sustainability compliance: rooftop solar, EV charging stations and LEZ-ready fleets are already operational. With take-up reaching 1.5 million m² in H1 2025 alone, 3PL solutions are increasingly the flexible choice for agile operators.

4. IT & Forecasting

Plugging into Advanced, Continuously Evolving Platforms

Legacy systems and inaccurate demand forecasting remain hidden costs. Many French retailers still operate on fragmented platforms ill-equipped for real-time omnichannel visibility, volatile consumer behaviour or mandatory sustainability reporting.

Modern end-to-end 3PL providers continuously invest in unified technology platforms, investments many individual brands would find difficult to justify or sustain alone. Arvato's advanced WMS, AI-powered forecasting engines, control-tower solutions and seamless ERP integrations deliver end-to-end visibility and significantly reduce forecast error. Generative AI adoption and robotics deployment are also accelerating across the French 3PL sector.

Clients benefit from predictive intelligence that evolves with 5G, automation advances and tightening carbon-accounting rules, all without the multi-million-euro modernisation projects and implementation risks. The IT layer becomes a shared, always-up-to-date service within Arvato’s broader 3PL ecosystem.

The Strategic Advantage: Resilience Through True Partnership

When logistics risks are shared as part of an integrated end-to-end 3PL relationship, the whole supply chain gains resilience. French brands working with Arvato consistently achieve faster time-to-market, higher service levels and improved logistics cost ratios while gaining immediate access to best-practice sustainability programmes that support Scope 3 reporting and environmental tax compliance.

In 2026, with e-commerce growth projected at 7–8% and ongoing economic and geopolitical uncertainties, relying solely on in-house logistics is no longer the safest or most efficient path. Shared Risk through an end-to-end 3PL partnership is indeed a strategic collaboration, one that encompasses the full range of services. From core fulfilment and sourcing capabilities to advanced digital and sustainable solutions.

Arvato has supported French and international brands for decades with precisely this integrated approach: full visibility, elastic operations and genuine risk sharing across every link of the chain. Whether you operate in fashion with sharp seasonal swings, furniture with complex omnichannel needs, or beauty with stringent temperature control, Arvato’s model is built to deliver.

The question for French decision-makers this quarter is clear: Are you still bearing logistics risks alone that could be more effectively shared within a comprehensive 3PL relationship?

Ready to explore how Arvato’s end-to-end services can strengthen your 2026 strategy? Contact the Arvato France team today and turn shared risk into shared success.

Author:
Abbas Tolouee, Director Strategy & Consulting, Arvato SE

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Abbas Tolouee
Director Strategy & Consulting | Fashion, Beauty & Lifestyle