A storage system having side-by-side dual pallet bays is provided. The system includes a single level or stacked multilevel storage bay. Each bay is defined by a series of vertically extending supports and a central divider for storing two rows of pallets. Preferably, there are no vertical supports extending up from the central divider. Rails are provided on both sides of each row for supporting pallets and for pallet transportation/inventory carts to travel under the pallets. The front of the bay should be configured for access by a dual-four forklift, to insert and remove two pallets from the bay at a time.