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Future of Retail & E-commerce 2025

Warehousing: the backbone of modern retail in a fast-changing market

Long exposure of modern warehouse interior with motion blur of workers and machinery
Long exposure of modern warehouse interior with motion blur of workers and machinery

Clare Bottle

Chief Executive, UK Warehousing Association

The retail landscape is shifting dramatically. Omnichannel commerce is redefining how consumers browse, buy and return products.


Social media platforms like TikTok have become powerful hubs, providing endless choice and seamless shopping. Younger consumers, in particular, are weaving together multiple sources of information before making purchasing decisions. Such complex and dynamic shopping behaviour is placing unprecedented demands on retailers and their supply chains. 

Supply chain efficiency: the next retail battleground

Today, customer satisfaction is key to business growth. Success hinges on the ability to optimise every element of the supply chain, from order fulfilment and last-mile delivery to returns management. 

Warehouses are the operational heartbeat of retail, ensuring that products reach consumers swiftly and sustainably. They play an especially critical role in supporting the booming ‘recommerce’ market, a sector currently valued at £6.5 billion and projected to nearly double to £12.4 billion within five years.

Partnering with the right warehousing experts
can embed sustainability into a retail brand
while unlocking new revenue streams.

Tapping into the ‘preloved’ boom

Platforms like eBay, Vinted and Depop have driven the rise of recommerce; and mainstream retailers are capitalising on it. Success requires a supply chain partner capable of expertly managing returns — repairing, cleaning and repackaging preloved items to ensure they’re ready for resale — and finding recycling channels.

According to Tony Mannix, Strategic Advisor on Retail Logistics at GXO, partnering with the right warehousing experts can embed sustainability into a retail brand while unlocking new revenue streams. “A well-executed recommerce strategy doesn’t just align with sustainability goals; it enhances brand reputation and improves profitability,” he explains. 

Warehousing and AI: the future of retail logistics

To meet growing demands, warehousing is undergoing a revolution powered by cutting-edge technologies like generative AI. From predictive inventory management to intelligent automation, the retailers and logisticians who welcome AI will be best positioned to thrive in an increasingly complex and competitive market. 

Retail is evolving at an unprecedented pace, and warehousing is at the forefront of this transformation. The ability to manage supply chains efficiently, embrace recommerce opportunities and deploy cutting-edge technology will determine who wins in this new era. As consumer expectations rise, the role of warehousing in delivering seamless, sustainable and scalable logistics solutions has never been more vital.

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