Marks & Spencer has announced a landmark £340 million investment in its food supply chain – the largest in its history – as the company delivers against its strategy of reshaping for growth. This multi-year investment will fund the development of an automated National Distribution Centre (NDC) in Northamptonshire – a key unlock in the ambition to double the size of the M&S Food business.
Alex Freudmann, MD at M&S Food commented:
“We’re transforming M&S into a destination for the weekly shop and modernising our supply chain is central to that ambition.
“This investment will boost capacity for future growth, lower our cost to serve over the long-term, and improve product availability – ensuring customers find the right products in the right place at the right time.
“Our new site will strengthen our network and help us get ahead of the volume curve as we build a bigger, better Food business. By using the latest, proven automation, we are future-proofing both our business and UK retail logistics, as well as creating 1,000 jobs permanently on site and 2,000 during the construction phase.”
Spanning 1.3 million square feet, the new facility will feature advanced automation to significantly enhance operational efficiency, improve product availability on shelf and support the growing number of customers choosing M&S for their weekly shop. Based at Daventry International Rail Freight Terminal, a proven logistics location with strong transport links, the depot is expected to open in 2029. Today’s news follows an announcement earlier in the year to open a new 390k square foot distribution centre at Avonmouth in Bristol, serving stores in the Midlands, South-west England and South Wales.
M&S three main capital investment priorities remain supply chain, store rotation and renewal, and digital & technology. Earlier this year, M&S announced an acceleration of its store rotation and renewal programme this year, including twelve new food stores on former Homebase sites. The programme aims to create 420 bigger, fresher Food stores and a more productive group of 180 full line stores, with half the estate expected to be in renewal format by 2027/28. Phased over five years, this investment will support the acceleration of the rotation and renewal programme, creating the capacity needed in the supply chain to support these stores.
The construction phase of the new NDC will create over 2,000 jobs, with around 1,000 permanent roles once the site is fully operational, covering driving, logistics, management and more technical roles such as automation technicians.
The new depot will incorporate the latest proven automation, including:
- An automated pallet crane for handling long-life ambient products
- A high-speed shuttle system for sorting and storing stock
- A hands-free picking solution that loads items directly onto store-ready delivery cages
- These innovations will streamline operations across the supply chain and in stores, making restocking faster and easier for retail colleagues.
Designed with sustainability at its core, the new NDC is expected to achieve a BREEAM Outstanding rating – placing it in the top 1% of sustainable buildings globally and becoming M&S’ flagship Plan A warehouse. The site will feature:
- Responsibly sourced and recycled building materials
- EPC A+ rating with large scale rooftop solar panel array
- An advanced rainwater harvesting system
- EV vehicle charging and energy-saving technologies
- A vehicle maintenance unit
Prologis is the development partner and TGW Logistics has been appointed as the automation partner for the project.
Paul Weston, Regional Head at Prologis UK, said:
“This development goes beyond real estate – it’s a long-term infrastructure platform tailored to M&S’ future supply chain. Together, we’re combining automation sustainability and smart energy systems to deliver a site that supports growth, resilience and net zero ambitions.”
Craig Mitchell, Sales Project Manager TGW Limited at TGW, said:
“TGW is extremely proud to be partnering with M&S on this transformation journey. Our collaboration is built on mutual trust, shared ambition, and a commitment to delivering state of the art automation to support M&S’s long-term growth. Together, we are creating a logistics warehouse fit for future retail demands, one that sets a new benchmark for innovation and efficiency in the UK grocery sector.”
