The InternetRetailing Warehousing 2025 report looks at a critical stage of the direct-to-consumer journey. Retailers are investing in their warehouses to ensure they can deliver at pace, and in an increasingly green way.
The report harnesses RetailX research and features three retailer interviews. B&Q tells InternetRetailing how it is utilising its store network to provide its customers with choice – not simply products but also how and when they are delivered. The report hears from Pets at Home on how its distribution centre fits into its next decade of growth. The founders of Furniturebox explain why its facility is key to an 8pm next-day delivery cut off.
Inside the report:
- A strategic overview of the UK warehouse sector – The UK warehouse sector faces sustained growth in 2025 alongside mounting financial pressures, including rising rents and energy costs. Political instability and potential tariffs also pose significant disruption risks. The UK retail warehousing sector saw fluctuating demand over the past two years, with many retailers consolidating space in 2024 due to stalled online spending and increasing costs.
- The growth of 3PLs and 4PLs – The complexity of omnichannel fulfilment drives the growth of 3PLs, which provide operations and transportation, and 4PLs, which take on strategic management of multiple logistics partners. The complexity of operating multiple fulfilment models (omnichannel fulfilment), such as shipping from stores, dispatching to alternative collection locations, or the traditional warehouse-to-customer model, has led many retailers to rely on Third-Party Logistics Providers (3PLs) and Fourth-Party Logistics Providers (4PLs).
- Why warehouse systems and robotics are being introduced at pace – Robotics and warehouse systems are deployed rapidly, driven by AI and IoT, to provide efficiency and speed. Advanced WMS offers crucial real-time inventory visibility and supports modern, flexible order fulfilment strategies. Warehouse systems and robotics are being introduced rapidly to provide retailers with the tools to keep up with fulfilment demands, especially since many businesses feel they need to modernise their operations.
- Partner perspective – DSV focuses on creating sustainable supply chains and aims for net-zero emissions by 2050. They utilise their WMS for CO2 reporting, offering visibility into emissions, and promoting a circular supply chain through refurbishment and recycling.
Exclusive case studies cover The Perfume Shop’s automated packaging machine and Ikea’s London expansion
- The Perfume Shop invested £2.5 million into a new cutting-edge automation packaging system at its Dunstable warehouse to future-proof its distribution capabilities and meet online demand. The system is designed to accelerate customer order processing three times quicker and reduce packaging usage by 40%. The new machines fold boxes precisely to the size of the contents, using 90% recyclable, UK-made cardboard, which also reduces carbon emissions by requiring fewer delivery trucks. The automation will increase packing capacity to over 1,500 orders per hour.
- Ikea opened a multi-million-pound, 452,000 sq ft customer distribution centre in Dartford. This investment supports the retailer’s omnichannel strategy in London and the Southeast, where nearly every second Ikea purchase occurs online. The Dartford site is strategically located near the M25 and Dartford Crossing, designed to deliver almost one million orders annually, with many reaching customers within 24 hours. By being closer to customers, the site reduces CO2 emissions from deliveries and supports Ikea’s wider goal of achieving 100% electric vehicle deliveries in London by 2025
