London Fire Brigade was called at around 6:36am to the scene of a fire at a single-storey warehouse on Imperial Way.
12 fire engines and around 80 firefighters have been despatched to the scene, with crews from Croydon, Purley, Norbury and Mitcham.
The brigade warned people to “avoid the area” where possible, with the fire expected to be ongoing for “several hours”.
As a result of the incident Imperial Way is closed, which could result in travel delays.
The cause of the fire is currently unknown.