Can Retail Space Be Repurposed for Last-Mile Logistics?

Reports emerged that Amazon is bidding aggressively on some of the 42 Homebase stores that have hit the market as part of the DIY retailer’s CVA process

The rapid growth of e-commerce has prompted developers and logistics operators to explore whether underused retail space could be transformed into last-mile distribution hubs. As demand for faster delivery services increases, vacant high street units and shopping centre space are increasingly being viewed as potential urban logistics assets.

The article highlights how Amazon and other logistics providers are assessing retail locations due to their proximity to dense consumer populations and existing transport links. Repurposing retail space for fulfilment and delivery operations could help reduce delivery times while supporting growing same-day and next-day delivery expectations from consumers.

However, industry experts noted that converting retail assets into logistics facilities presents challenges, including planning restrictions, vehicle access requirements and balancing logistics activity with surrounding residential or retail uses. Despite this, the shift reflects broader changes in how property owners and occupiers are adapting to evolving consumer behaviour and the increasing importance of urban logistics infrastructure.