Prologis Research says UK ecommerce market most mature and complex 

By Liza Helps, Property Editor, Logistics Matters

WITH ALMOST 32% of all retail purchases now made online – more than triple the rate in many continental European countries – focus is shifting from growth in volume to growth in intensity.

As the UK’s e-commerce market matures, customer expectations continue to evolve – with an emphasis on speed, seamless returns and convenience. These pressures are redefining both the location and design of the logistics space. Same-day and next-day delivery is becoming standard in major cities such as London, Birmingham and Manchester, intensifying the demand for urban logistics facilities needed to fulfil last-mile deliveries.

Prologis UK Regional Head Paul Weston, said: “E-commerce will continue to be a key driver of demand – but the nature of that demand is changing. In a mature market like the UK, customers expect faster delivery, better tracking, and with sustainability built in. It’s shaping how we plan, build, and deliver logistics space.”

The research also notes that the rapid rise of Asian e-commerce platforms like Shein, Temu and Alibaba is adding to this shift. These companies are increasing their logistics presence in key European markets and expanding in the UK.

Chinese international 3PL Cirro Fulfilment (Super Smart Services) in the UK has taken more than 1 million ft2 (and counting) in the past 6 months with its most recent deal seeing it take a 354,000 ft2 warehouse  atPanattoni Park J28 Central M1– its 15th in the Midlands alone.

Chinese ecommerce giant JD.com is intending to build its own delivery network in the UK and recently took Oxenwood’s OXW277 a 277,628 ft2 warehouse in Dunstable and is believed to have at least one other  similar sized unit under offer. The company recently announced a recruitment campaign for more than 40 roles  in London for supply chain specialists with experience in Small and Large Domestic Appliances, Consumer Electronics, Home and Living, World Foods, Toys, Baby, FMCG, Ambient Grocery and Fashion.

Recent lettings by Prologis include American owned online kinetic furniture company FlexiSpot taking space at Wellingborough West and Chinese global e-commerce business, Furnolic Co, at Ryton – both scaling their operations to better serve UK-based consumers.

Prologis Research goes on to note that with the UK government considering changes to the ‘de minimis’ tax exemption, which currently allows goods under £135 to enter the UK without duty or VAT, this could increase costs for international platforms relying on cross-border delivery and accelerate a shift towards domestic warehousing – mirroring regulatory pressures already seen in the US and EU.

Shifts in consumer behaviour and business models are not the only factors influencing demand. Two major trends further shaping the industry are sustainability and automation – with e-commerce operators prioritising energy-efficient warehouses and carbon-neutral operations to meet regulatory commitments and reduce long-term costs.

Meanwhile, retailers and third-party logistics providers (3PLs) are accelerating adoption of robotics, AI-driven inventory systems, and multi-level distribution centres. These technologies are not only improving space efficiency but enabling faster and more responsive operations at scale, whilst increasing the power requirements of facilities.