BUSINESS · TECHNOLOGY · LOGISTICS

Amazon has officially opened a £107 million distribution centre in Peterborough, England, creating around 1,400 jobs and introducing a new model for moving products through its UK delivery network. The 690,000-square-foot facility can hold up to 16 million items during peak periods and is designed to send as many as five million items a week to Amazon fulfilment centres across the country.

Amazon has opened a major new distribution centre in Peterborough as the online retail giant expands its UK logistics network and invests in infrastructure designed to improve the movement of goods.

The £107 million facility, located on Flaxley Road, is the company's first UK site of its new One Distribution Centre format. It is expected to create around 1,400 jobs and support the movement of millions of products through Amazon's fulfilment network.

Unlike a conventional fulfilment centre, where customer orders are picked and packed for delivery, the new facility focuses on storing popular products and supplying them to other fulfilment centres. Those centres then combine the products with the rest of customers' orders before dispatch.

Amazon says the new approach will reduce unnecessary processing steps, improve stock availability and help more products qualify for same-day or next-day delivery.

The opening, reported on October 15 and 16, 2026, represents a further expansion of the company's established presence in Peterborough and forms part of its wider £40 billion UK investment plan for 2025 to 2027. Peterborough Telegraph coverage and other local reports confirmed the opening and the facility's operating capacity.

Inside Amazon's £107 Million Facility

The new distribution centre covers approximately 690,000 square feet, making it one of Amazon's largest logistics facilities in Europe. The company says the site can store up to 16 million items during peak periods and has the capacity to ship as many as five million items every week.

The warehouse is designed to hold products that customers frequently purchase, including household essentials such as pet food and toilet paper. By keeping these goods ready for movement through the network, Amazon can replenish its fulfilment centres more efficiently.

The facility will supply approximately 20 Amazon fulfilment centres across the UK. It does not send orders directly to customers; instead, it supports the wider network that processes and dispatches customer purchases.

This distinction is central to the new operating model. By separating the storage and redistribution of high-demand products from the final order-picking process, Amazon aims to reduce pressure on fulfilment centres during busy shopping periods.

The additional capacity is particularly relevant during major sales events such as Prime Day and Black Friday, when order volumes can rise sharply and keeping popular products available becomes more challenging.

How the New Distribution Model Works

Traditional fulfilment operations often require products to pass through several handling and processing stages before they are ready for dispatch. Amazon's One Distribution Centre model is intended to simplify part of that process.

Products arrive from suppliers at the Peterborough site and are stored until they are needed by fulfilment centres elsewhere in the country. The distribution centre then sends the goods onward, allowing those centres to focus on assembling customer orders and preparing them for delivery.

According to Amazon, the new arrangement reduces processing steps and moves popular products more directly through its logistics network.

The approach could also help Amazon respond more quickly to changes in demand. If particular household products become more popular in a given period, the company can use its distribution network to replenish the locations that need them.

However, the overall delivery experience will still depend on factors such as inventory accuracy, transport capacity, staffing and the efficiency of the fulfilment centres receiving the products.

New Technology Speeds Up Stock Movement

The Peterborough facility introduces pallet computer-vision technology designed to check products as they arrive from suppliers.

The technology is intended to reduce the need for a separate checking stage, helping goods move through the building more quickly. By identifying and processing incoming stock earlier, the system can support more efficient movement between receiving, storage and dispatch operations.

The site will also operate the largest fleet of powered industrial trucks of any Amazon site in the UK, according to the company.

These vehicles help workers move goods around the facility, while the new operating model is designed to reduce unnecessary handling. The combination of equipment, inventory processes and distribution planning is intended to increase throughput without sending customer orders directly from this building.

Automation and computer-vision systems are becoming increasingly important across logistics. Large retailers handle enormous volumes of products, and even small improvements in processing time can make a difference when repeated across millions of items.

For Amazon, the Peterborough site also provides a model that could influence how similar operations are organised in the future.

Amazon's New Centre Will Create 1,400 Jobs

The facility is expected to create around 1,400 jobs, providing a significant employment boost for Peterborough.

The roles include powered industrial truck drivers, inventory-control staff, team leaders and area managers. Other operational and specialist positions support the management, safety and day-to-day running of the site.

Amazon says employees receive pay alongside benefits that may include private medical insurance, life assurance, income protection, subsidised meals, a grocery discount and a company pension. The specific package can depend on employment terms and eligibility.

The company also offers its Career Choice programme, which supports eligible employees with training and nationally recognised qualifications. Amazon says the programme can cover up to 100 per cent of eligible training costs, subject to its annual funding limit and programme conditions.

Such training schemes can give workers opportunities to develop skills that may be useful in logistics, technology and other industries. Their long-term impact will depend on participation, the quality of training and whether employees can use those qualifications to advance their careers.

The new site also builds on Amazon's existing presence in Peterborough. Its established fulfilment centre has operated since 2010 and employs more than 1,000 permanent staff.

Part of Amazon's £40 Billion UK Investment

The Peterborough distribution centre forms part of Amazon's £40 billion investment plan for the UK covering 2025 to 2027.

Announced in June 2025, the broader plan includes new fulfilment centres, delivery infrastructure, corporate facilities, cloud computing and artificial-intelligence infrastructure, alongside investment in training and other operations.

Amazon said the programme would support job creation across the country and strengthen the infrastructure used by its retail and technology businesses.

The company has also highlighted the role of its logistics network in supporting small and medium-sized businesses that sell products through Amazon's marketplace. A more efficient distribution system can help those sellers reach customers, although the benefits depend on the terms of participation and the costs of using the platform.

The company's official announcement provides further details about its broader commitment to the UK economy: Amazon's £40 billion UK investment plan.

The Peterborough site is one component of that programme rather than a standalone investment. Its importance lies in the role it could play in improving the performance of the company's existing network.

Why Peterborough Matters to Amazon

Peterborough has developed into an important location for logistics and distribution, supported by road connections and its position within eastern England.

For Amazon, opening another major facility near its existing operations creates an opportunity to expand capacity in a city where it already has an established workforce and infrastructure.

The new centre is the company's first new building in Peterborough in 15 years, according to local reporting. Its opening adds a large logistics operation to the city's existing employment base.

The project could bring benefits to local businesses that provide transport, maintenance, catering and other services. However, the wider economic impact will depend on how much spending remains in the local economy and how the new jobs develop over time.

The facility's location next to an established Amazon site may also help the company coordinate operations and integrate the new distribution model with its existing network.

What the Opening Means for Amazon Customers

Customers will not place orders directly through the new distribution centre. Its role is to supply other Amazon facilities that prepare orders for delivery.

Amazon expects the additional storage and streamlined product movement to improve stock availability and help more products reach customers through same-day or next-day delivery options where those services are available.

The facility may also help the company manage demand during peak shopping periods by keeping frequently purchased products closer to the fulfilment network.

Nevertheless, the opening does not mean that every Amazon order will arrive faster. Delivery times continue to depend on the product, the customer's location, available stock, transport routes and the services offered for that particular order.

The main expected benefit is a more efficient flow of goods through the company's wider logistics system rather than a direct change to every customer's delivery experience.

Key Facts

  • Company: Amazon.
  • Location: Flaxley Road, Peterborough, England.
  • Investment: £107 million.
  • Facility size: Approximately 690,000 square feet.
  • Expected jobs: Around 1,400.
  • Peak storage capacity: Up to 16 million items.
  • Weekly shipping capacity: Up to five million items.
  • Distribution role: Supplies around 20 Amazon fulfilment centres rather than delivering directly to customers.
  • New technology: Pallet computer vision and a large fleet of powered industrial trucks.
  • Wider investment: Part of Amazon's £40 billion UK investment plan for 2025–2027.

The Bigger Picture

Amazon's new Peterborough distribution centre is more than an additional warehouse. It introduces a different way of moving popular products through the company's UK logistics network, with the aim of reducing handling, maintaining stock availability and supporting faster fulfilment.

The £107 million investment is also expected to create around 1,400 jobs and strengthen Amazon's presence in a city where it already operates a major fulfilment centre.

Whether the new model delivers lasting improvements will depend on how effectively Amazon integrates the site into its wider operations. For customers, the goal is a more reliable supply of popular products and faster delivery options where available. For Peterborough, the opening brings new employment opportunities and another major investment in local logistics infrastructure.

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