THG Fulfil expands AutoStore deal with CapEx & RaaS

THG Fulfil has expanded its distribution partnership with AutoStore, allowing it to offer AutoStore systems through both capital purchase and its Robotics-as-a-Service model.

The move broadens an existing arrangement centred on Robotics-as-a-Service, or RaaS. Under the new terms, brands and retailers can buy AutoStore systems outright as a capital expenditure, use a service-based model, or combine the two.

The expanded arrangement gives THG Fulfil global distribution rights for the full AutoStore product range under the CapEx model. Its RaaS offer will continue to cover a selected range of AutoStore products, including R5 Pro and R5 Pro+ robots, CarouselPort, ConveyorPort and VersaPort.

The development reflects a wider debate among retailers and logistics operators over how to fund warehouse automation as cost pressures persist. Businesses considering automation projects are increasingly weighing the impact on cash flow against the appeal of owning equipment on the balance sheet.

THG Fulfil, part of THG Ingenuity, runs fulfilment operations for eCommerce businesses. It already operates 796 AutoStore robots across its network and has integrated the system with its warehouse control software.

According to THG Fulfil, that set-up handles more than 11,000 bins to picking stations per hour and has reduced average pick wait times by 78%. The company also pointed to a recent AutoStore installation for Footasylum, which uses 85 AutoStore R5 robots and more than 96,000 bin locations to store the retailer's live stock-keeping unit range.

Commercial choice

The expanded agreement allows customers to keep the same distribution and integration partner while choosing different funding structures for automation projects. That may appeal to retailers at different stages of growth, from those seeking lower upfront spending to those willing to commit capital to owned infrastructure.

Tom Killeen, Chief Operating Officer, THG Ingenuity, said: "Automation should never force brands to choose between control and cash flow. Our AutoStore distribution offering was originally built around a RaaS model because, for many of our clients, protecting capital while scaling automation was the right call. But as more ambitious brands are ready to own their automation outright, we wanted to give them that option too, without losing any of the design, integration, software and operational expertise that comes with working with THG Fulfil. It provides CFOs with the ability to assess the merits of both a RaaS and CapEx route, so we can meet brands and retailers wherever they are in their automation journey."

AutoStore, which supplies automated storage and retrieval systems for warehouses, has been expanding its partner network as retailers and third-party logistics groups seek to increase throughput and use space more efficiently. The arrangement with THG Fulfil gives customers another route to deploy its systems under different commercial terms.

Russell Holmes, Sales Director UK & I, AutoStore, said: "Giving customers greater flexibility in how they invest in automation helps them scale in a way that fits their business. By expanding our partnership with THG Fulfil to include both CapEx and RaaS models, we can support more businesses in choosing the commercial approach that best fits their operational and financial priorities."

The agreement also shows how warehouse technology suppliers and integrators are adjusting their sales models as buyers become more cautious about large upfront commitments. Service-based models have gained traction by spreading costs over time, while traditional ownership remains attractive for operators seeking direct control over assets and depreciation.

For THG Fulfil, the expanded remit moves it beyond a single financing route and gives it a broader role in AutoStore deployments. For retailers, it adds a financing decision alongside the operational case for automation, with CapEx, RaaS or a hybrid structure now available through one provider.