SME Flooring Retailers Navigate £252 Billion Investment Surge Amid Rising Delivery Costs
With UK SMEs collectively investing £252 billion towards growth in 2024, a 27% increase compared with 2022, online businesses selling bulky goods face a unique challenge that could determine the winners and losers in the UK’s ecommerce economy.
New research commissioned by the online carpet retailer Designer-carpet.co.uk reveals 82.6% of UK logistics companies have experienced technological challenges impacting operations over the last 12 months, with 43.6% citing high implementation costs as a key barrier to digital adoption. For SMEs, these statistics represent both challenge and opportunity.
“Couriers are expected to handle 1.29 billion shipments this peak season, up 10.9% on last year,” said Ben Herbert, a spokesperson for Designer Carpet. “But that growth masks a real challenge for businesses like ours dealing with bulky and awkward items that don’t fit the standard parcel model.”
The logistics industry contributes £163 billion annually to UK GDP and employs 2.7 million people, yet investment volumes dropped 23% in Q1 2024.
It’s a challenge that’s is particularly acute for businesses selling home improvement products, which are typically heavy and bulky.
“Traditional logistics providers are built for boxes, not 12-foot rolls of carpet,” Herbert says. “While competitors struggle with standard couriers, we’ve invested in specialist transport partnerships that can handle our products properly.”
While 86.5% of logistics operators plan to digitally transform their operations, nearly one in five companies haven’t updated their connectivity systems since 2020. This digital divide is creating opportunities for agile SMEs willing to invest in modern solutions.
SMEs with limited purchasing power struggle to secure bulk orders or negotiate favourable long-term contracts, making them particularly vulnerable to price fluctuations. However, those investing in technology are finding ways to compete effectively against larger players.
“When someone in Manchester orders on Tuesday morning, they know exactly when it’ll arrive and can plan accordingly. That reliability is worth paying for,” said Herbert.
