What is the future of micro-fulfilment centres?

Micro-fulfilment is revolutionising the way goods reach your doorstep.

These compact, urban facilities are the secret weapon for retailers and distributors, making the entire order-to-delivery process faster and more flexible.

With online shopping on the rise, consumers now expect same-day deliveries, free or low-cost shipping, and hassle-free returns, and micro-fulfilment is stepping up to meet these demands.

Micro-fulfilment centres (MFCs) are small, usually, highly automated, mini-warehouse facilities operating near consumers, sometimes even within physical retail stores. They work well in the grocery, apparel and other fast-moving consumer-goods sectors.

Micro-fulfilment centres (MFCs) bring the most in-demand items exactly where they’re needed most, right near the consumer. Whether housed in a purpose-built facility or carved out of existing warehouse or retail space, these centres are designed for efficiency.

Often serving as the “spokes” in a larger hub-and-spoke distribution system, MFCs help retailers speed up delivery and streamline operations. While advanced automation and sophisticated software handle much of the picking and packing, the human touch still plays a crucial role in ensuring everything runs smoothly.

What is driving the increase in MFCs?

The surge in micro-fulfilment centres (MFCs) is driven by the demand for faster delivery and convenience. These compact, highly automated facilities address the growing consumer expectations for same-day or even same-hour delivery, which traditional distribution centres often struggle to meet.

Retail giants and supermarkets are investing heavily in MFCs to stay competitive in a market dominated by e-commerce, while urbanisation and rising land costs make their small footprint ideal for densely populated areas.

Companies are optimising the picking and packing of small-size orders and will continue to build relationships with local couriers and 3PLs to guarantee fast delivery.

With advanced automation reducing labour reliance and sustainability gains like lower emissions and reduced congestion, MFCs are rapidly becoming the cornerstone of modern logistics.

Dark stores are evolving retail

Dark stores are physical retail outlets that have been partially or fully converted into mini-fulfilment centres (MFCs), enabling faster and more streamlined online order processing.

As consumer habits shift toward e-commerce and in-store visits decline, retailers are capitalising on unused space to meet rising demands for convenience and speed.

By repurposing these spaces, businesses can optimise their operations, reduce delivery times, and create a seamless shopping experience tailored to today’s digital-first world.

Sustainability

A recent report by Accenture found that last mile delivery ecosystems could reduce harmful emissions and traffic congestion within cities by using micro-fulfilment centres. Of the three cities included in the study, London would see the largest delivery traffic reduction from the use of MFCs, equating to about 320 million fewer miles travelled by delivery vehicles.

The future of micro fulfilment centres

To satisfy the growth in frozen and chilled grocery fulfilment, StrongPoint, a retail technology firm focused on making stores and supply chains smarter, has successfully installed the world's first AutoStore? Multi-Temperature Solution? with a frozen zone.

The inaugural site has been installed for Haugaland Storhusholdning in a facility based in Sveio, Norway and became operational in September 2024.

The Multi-Temperature Solution allows multiple temperature zones within a single AutoStore cube. It is designed for frozen and chilled environments with a temperature range of -25°C in the frozen section to +6°C in the cooled areas.

The picking of frozen products occurs at the ports in the chilled area to eliminate picking of items within extreme frozen temperatures, thus creating a better working environment for operators. This will allow customers to have a solution that can increase speed and efficiency with their frozen inventory.

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