02 July 2025

Research from Inteq reveals that the majority of UK retailers feel constrained by aging warehouse and fulfilment systems, which are hampering their ability to expand and respond to fluctuating customer demand.

A survey of retail and eCommerce senior leaders found that 58% believe their current fulfilment infrastructure limits their growth prospects, while 56% say warehouse logistics issues are directly affecting their business expansion.

The study highlights the broader challenges faced by the sector amid shifting consumer expectations, ongoing supply chain disruptions, and seasonal peaks. Retailers recognise that outdated facilities and systems are a significant obstacle to maintaining operational performance and delivering high-quality customer service.

A striking 88% of respondents agree that integrating robotics and automation into their fulfilment processes would give them a competitive edge during demand surges, such as holiday shopping seasons and major sales events. Many retailers are already experiencing the benefits of such investments: nearly 70% report tangible improvements within less than a year of implementation. The key advantages include increased operational efficiency (41%), greater scalability (28%), and enhanced accuracy in order processing (26%).

Given the rapid pace of technological change, retail leaders see modernising warehouse logistics as essential for staying competitive. They are prioritising upgrades to their infrastructure and technology, driven by the need to meet the rising demand for fast, error-free deliveries.

However, the process of adopting new systems presents challenges. The study found that selecting the right technology partner is critical for success. Ongoing system maintenance concerns were raised by 34% of respondents, while 32% cited difficulties with technical integration. Retailers emphasise the importance of careful partner evaluation to prevent being locked into inflexible systems that may hinder future automation or growth initiatives.

Despite hurdles, most retailers remain committed to investing in automation to address demand volatility and enhance customer experience. The research indicates a swift return on investment, with 69% of companies experiencing efficiency gains within twelve months. The findings are further explored in the ‘Fit for Growth’ report, which offers strategic insights on balancing current demand with future expansion, emphasising how robotics and automation can drive resilience and profitability in a highly competitive market.