Chinese retailers launch UK warehouse land grab as they square up to Amazon

By the Editorial Team · Friday, October 2, 2026

Chinese e-commerce companies such as Shein and JD.com have dramatically increased their warehouse space in the UK, leasing or acquiring 6.4 million square feet over the past 18 months to build local distribution centers ahead of new customs rules coming into effect in October 2028. This expansion positions them to compete more directly with Amazon by managing inventory and fulfillment domestically, while raising concerns among UK politicians about the impact on local producers and economic interests.

Chinese e-commerce companies have significantly expanded their warehouse footprint in the United Kingdom as they prepare to compete more aggressively with Amazon. Over the past 18 months, firms including Shein, JD.com, TikTok Shop, and Temu have leased or developed approximately 6.4 million square feet of warehouse space, according to data from property consultancy Knight Frank. This marks a substantial increase from the 2.2 million square feet secured during the previous 18 months and less than 1 percent of total take-up before that period.

This surge in warehouse acquisitions, equivalent to about 11 percent of large warehouse absorption in the UK, reflects the Chinese sector’s strategic response to upcoming changes in customs regulations scheduled for October 2028. The new rules will end the current duty exemption on goods valued at £135 or less, a policy that has allowed Chinese retailers to ship low-value items directly to UK consumers without paying customs duties. The anticipated regulatory shift is accelerating investment in local distribution hubs to handle storage and fulfilment within the UK, mirroring Amazon’s established logistics model.

Among notable deals, logistics company Bleckmann leased a 761,000 square foot facility at Magna Park North in Leicestershire, which will serve as a fulfilment center for multiple Chinese retailers. Additionally, Shein secured a 645,000 square foot distribution site near Derby. Chinese investment includes both leasing and property acquisition, with Shanghai-based Mit-Log recently purchasing a 540,000 square foot site at Dove Valley Park near Derby for its first UK project.

The rapid expansion has made Chinese firms the largest foreign occupiers of UK warehouse space in the last 18 months, surpassing American companies that accounted for 4.4 million square feet of new space. Approximately 75 percent of the space taken up by Chinese entities is dedicated to e-commerce activities, with the remainder primarily serving manufacturing needs.

This trend has sparked concern among some British politicians who view the influx of Chinese retail infrastructure as potentially detrimental to domestic producers and the broader economy. Alicia Kearns, the shadow home affairs minister, voiced skepticism about the benefits of increased imports of low-cost Chinese goods, suggesting it may undermine British economic interests.

Industry experts at Knight Frank note that Chinese e-commerce companies are now gearing up to challenge Amazon’s market dominance by establishing extensive regional networks to manage inventory and fulfil orders inside the UK. Claire Williams, a partner at Knight Frank, highlighted this shift as a clear indication of Chinese firms’ commitment to building a competitive logistics presence in Europe’s largest online retail market.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.