Overview
Investment in UK warehouse capacity, specialist storage and logistics skills features prominently in this month’s industry update.
From a new automated cold store in Wrexham to a major distribution centre in Northampton, recent developments show how businesses are preparing their operations for future requirements. Meanwhile, new property research highlights changes in the availability of modern warehouse space.
This edition explores these wider industry developments and their relevance to warehouse operators, alongside a brief international update on Zalando’s use of robotics.
Automated Cold Storage Expands in Wrexham
Thermotraffic announced on 5 October that its expanded Wrexham Distribution Centre would become operational during the month, following completion at the end of September.
The development adds approximately 19,300 pallet spaces, bringing the site’s total capacity to around 33,150 pallet spaces. It is the company’s first automated warehouse and expands its temperature-controlled logistics capacity for UK food businesses.
Alongside additional storage, the project includes a production area supporting activities such as labelling, repacking and product inspection. The company says bringing these services together can help customers reduce unnecessary movements through the supply chain.
The project illustrates how warehouse investment can address more than storage volume. For food businesses, the location of handling and processing activities also affects how products move through an operation.
Our takeaway is the value of considering storage, handling and additional services together. Adding capacity is useful, but the surrounding processes need to support the increased volume without introducing extra transfers or delays.
Northampton Adds Major Automated Distribution Capacity
Another significant UK development receiving coverage in October is Yusen Logistics’ new 1.2 million-square-foot distribution centre in Northampton, which officially opened on 24 September.
The facility brings together warehouse automation and digital technology, with the company positioning it as an investment in long-term customer growth and more complex supply chain requirements. Its opening adds substantial distribution capacity in one of the UK’s established logistics regions.
For businesses planning their own facilities, the relevant question is how the building and its operation will develop together.
An increase in stockholding can affect replenishment, picking, internal transport and despatch. Planning these activities as connected processes helps establish where capacity is needed and how future expansion could be accommodated.
Our view is that this principle applies at every scale. A business extending an existing warehouse needs to consider the same relationships as one developing a new distribution centre: where products arrive, where they are stored, how they reach the next task and how completed orders leave the building.
UK Warehouse Development Slows While Demand Holds Up
Research reported in October provides a useful backdrop to these individual investments.
According to Colliers figures covered by Logistics Manager on 14 October, UK take-up of logistics units larger than 100,000 square feet reached 21.8 million square feet during the first nine months of 2026, slightly above the pre-pandemic ten-year average.
However, speculative development, warehouses built without an occupier already secured, has slowed. Just 7.3 million square feet is forecast to complete during 2026, 45% below the five-year average.
The report also highlights a changing mix of available buildings, with less newly built space and more second-hand availability than a year earlier.
For warehouse operators, our interpretation is that expansion planning should include a careful comparison between relocating and improving an existing site.
Available floor area is only one consideration. Building height, access, loading arrangements and the layout of internal processes all influence whether a property can support the required operation.
This also gives businesses a reason to review how effectively they use their current premises. A different layout or a targeted material handling improvement may release useful capacity, although the right approach will depend on the building and its operational constraints.
Logistics Skills Receive a £13 Million Investment
October also brought news of the completion of The Hive, a £13 million skills and innovation facility at London Gateway, developed by DP World and Thames Freeport.
The facility is intended to provide more than 100 days of industrial and employability training each year, supporting approximately 1,125 trainees annually. Planned activities include crane driver simulation, working-at-height training and virtual reality experiences introducing people to maritime and logistics careers. Partners are expected to begin operating from the facility in November.
Although this is a broader logistics development, it raises a relevant point for warehouse automation: investment in equipment needs to be supported by investment in people.
For businesses introducing new systems, our practical takeaway is to include training in the project from the outset. Employees need to understand normal operation, how to recognise exceptions and when to seek support.
Involving operators during planning can also bring useful practical knowledge into the design, particularly around recurring handling issues and everyday working requirements.
International Brief: Zalando Introduces Robotics for Fashion Returns
In Europe, Zalando has begun using AI-powered dual-arm robots to process fashion returns at logistics facilities in Greven, Germany, and Świebodzin, Poland.
The announcement on 7 October states that the systems can identify, grasp and sort returned products without individual training for every item. Employees continue to support supervision, exception handling and quality control.
Following last month’s discussion of returns, this provides a specific deployment to watch. Its wider relevance is how robotics handles variation in product presentation while working alongside tasks that still require human judgement.
What This Means for UK Warehouse Operators
Taken together, these developments provide several useful considerations for businesses reviewing their operations.
Additional storage should be planned alongside the processes that feed and empty it. Property decisions should reflect the practical requirements of the operation. Training should form part of an improvement project from the beginning.
For businesses considering automation, a useful starting point is to identify the constraint they need to resolve:
- Is storage capacity limiting growth?
- Are products being moved or handled more often than necessary?
- Does the layout create delays between tasks?
- Would employees benefit from clearer processes or better handling equipment?
These questions help define a project around an operational need and provide a clearer basis for assessing the result.
Conclusion
October’s UK developments highlight investment in warehouse capacity, specialist handling and the skills needed to support logistics operations.
For businesses planning their next step, the opportunity lies in understanding how space, equipment and people can work together to support future demand.
To discuss your warehouse or material handling requirements, contact the North Automation Group team. You can also explore our Knowledge Hub for more industry updates, practical guides, FAQs and case studies.