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Amazon dominates in race for warehouse expansion

Online giant Amazon acquired five times more new warehouse space than its rivals this year, as it strengthens its hold on the online market.

Amazon increased warehousing space by four million sq ft in 2017, with the next biggest retailer, Lidl, taking only 754,000 sq ft.

In total, Amazon now has taken 19.7 million sq ft of warehousing space in the UK in the last 10 years, according to research by property company Savills. 

In total, the amount of warehouse space sought by UK online retailers  is soaring, with 12.2 million sq ft signed for in 2016/2017, compared to 1.47 million sq ft signed for in 2007/2008. The amount of industrial space taken by online retailers has increased by 731% in nine years. 

Richard Sullivan, national head of industrial and logistics at Savills, noted that as the need for space increases, retailers will look beyond traditional logistics hotspots. “This festive season has seen the continued rise of online spending, which means we can only expect further growth by retailers looking to take advantage of changing consumer habits,” he said.

”In order to cater to this, industrial landlords and developers will need to look past traditional hotspots and embrace new key locations that offer deliverability and can provide the power, labour and infrastructure that occupiers need to be able to build a successful supply chain.”  


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