Freight News, Logistics

Amazon is eating UK warehouse space

[ April 7, 2017   //   ]

The growth of online retailer Amazon has had a huge effect on the balance between supply and demand in available UK warehouse space, delegates at the Multimodal event in Birmingham have heard.

According to Mark Thornton, marketing director of Omnichannel and e-commerce technology provider Maginus, the online giant holds a quarter of the country’s available warehouse space. It currently own 13 fulfilment centres and 22 delivery stations in the UK, and expects to be complemented by an additional one million square-feet of warehousing later this year.

Its take-up of capacity in 2016 was such that it led to a 71% reduction in total available space in the country.

“Rents have subsequently increased for everyone and, in some places, have gone up by 20%,” Thornton added.

It has also given rise to a steep rise in demand for warehouse workers, with a consequent drain on the availability of labour.



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