NEWS

Amazon looks for new UK distribution hubs to maintain rapid delivery

Published on: 10th November 2020

Amazon is looking to rent spaces across new UK locations outside of London and the South East, to expand its physical footprint.

As the demand for online shopping increases whilst England grapples with another lockdown, Amazon is looking for 40 new distribution hubs across the UK as part of its aggressive property expansion.

Rather than buy, the online retail giant is seeking to rent across new UK locations outside London and the South East, where it already holds a significant presence.

One industrial property agent said: “Amazon is currently at the forefront of most requirements. If you’ve got space, the chances are it’ll be Amazon. They are taking huge amounts.”

It is thought that the latest dramatic push to expand its physical footprint comes as Amazon struggles to maintain its two-day delivery promise for Prime customers in the UK.

The coronavirus pandemic has seen demand for Amazon products rapidly increase, and the second national lockdown during the busy Christmas shopping season is expected to put major pressure on the retailer’s supply chain.

Amazon has already increased its footprint by 50% this year, up from just 15% between 2018 and 2019. In June, it was reported that Amazon had purchased nearly a quarter of all available industrial space in the UK over 2020. This represented 3.15m square ft of the 13.5m square ft total take-up this year.

Amazon also accounted for 75% of the online retail industrial take-up, its largest since 2016 when it represented 85%.

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