UK retailers eye warehouse automation to drive future growth

Research conducted by Inteq indicates that most UK retailers feel constrained by outdated warehouse and fulfilment technology, impacting their ability to grow and meet fluctuating customer demand.

A survey of directors and senior leaders from retail and eCommerce businesses across the UK shows that 58% believe their current fulfilment infrastructure is holding them back from achieving growth. The study found similar proportions reporting that existing facilities affect their operational performance and customer service capabilities.

The research examined the broader attitudes within the sector as companies navigate pressures such as changing consumer expectations, supply chain disruptions and seasonal peaks. Over half – 56% – said that limitations within their warehouse logistics are directly affecting business growth.

Automation and robotics

According to the findings, 88% of respondents believe that robotics and automation within their fulfilment operations would provide an advantage in handling demand spikes during peak periods, such as major shopping events and holiday seasons.

The report also highlights that almost 7 in 10 retailers (69%) are already seeing tangible benefits from investments in robotics and automation technology in less than a year after implementation. Specific gains cited by those surveyed include increased operational efficiency (41%), greater scalability (28%) and improved accuracy (26%) in order fulfilment and processing.

Survey results suggest that the retail sector views upgrading warehouse systems as crucial for maintaining competitiveness in a fast-moving environment. Senior leaders identified the modernisation of logistics infrastructure and technology as a high priority, particularly as customer demand for rapid and error-free delivery remains strong.

Partner selection and challenges

The study found that while there is a willingness to invest in advanced technology, the process is not without complexities. Selecting the right technology partner emerged as crucial for successful implementation and long-term returns. Key concerns include the complexity of ongoing system maintenance, highlighted by 34% of respondents, along with technical integration challenges, which were named by 32% of those surveyed.

There was consensus that careful evaluation and partner selection are necessary to avoid becoming locked into systems that may not allow for future flexibility or the integration of new automation technologies.

Focus on software

Scott Merrick, Managing Director at Inteq, said: "Retailers clearly understand the value that robotics and automation can bring to their operations – from improved efficiency and flexibility to increased accuracy. That's why everything we do is about engineering smarter businesses in order to drive impactful growth and change.

Merrick further commented: "At Inteq, we believe the key to unlocking growth starts with the software. It can be hard for businesses to keep pace with fast changing robotics and automation technology and innovations, with organisations looking at projects on a piecemeal basis and feeling stuck with their legacy solutions.

"That's why we have developed IWS, our Intelligent Warehouse Software platform which is truly hardware agnostic, removing complexity and providing a bespoke solution that blends together different hardware solutions to unlock significant competitive advantages."

Efficiency and future planning

The Inteq research suggests that, despite obstacles, most retailers are willing to invest in the automation necessary to address demand volatility and rising customer expectations. Businesses reported a fast return on investment, with 69% identifying efficiency benefits in under twelve months.

The Fit for Growth report released by Inteq delves further into how businesses can balance present demand with future growth, leveraging robotics and automation to achieve resilience and profitability in a competitive market.