Marks & Spencer (M&S) has announced a landmark £340 million investment in its food supply chain, the largest in its history, as part of its strategy to reshape for growth and double the size of its food business.
The multi-year investment will fund the creation of a fully automated National Distribution Centre (NDC) in Northamptonshire, designed to transform supply chain efficiency, expand capacity, and modernise UK retail logistics.
Alex Freudmann, MD at M&S Food, said the investment will modernize the supply chain to support M&S’ goal of becoming a destination for weekly shopping, boosting capacity, cutting long-term costs, and improving product availability.
Spanning 1.3 million square feet and located at Daventry International Rail Freight Terminal, the new facility will feature state-of-the-art automation, including pallet cranes for long-life products, a high-speed shuttle system for sorting stock, and hands-free picking solutions that prepare store-ready delivery cages. These innovations are expected to significantly enhance operational efficiency, improve shelf availability, and streamline restocking for colleagues in stores.
The project will generate over 2,000 jobs during construction and create around 1,000 permanent roles across logistics, driving, management, and automation engineering once fully operational. Scheduled to open in 2029, the new depot represents a major step in M&S’ ambition to make its food stores a primary destination for weekly shopping.
Sustainability is at the core of the development, with the NDC targeting a BREEAM Outstanding rating, placing it among the top 1 percent of sustainable buildings globally. The site will include responsibly sourced and recycled materials, a rooftop solar panel array, rainwater harvesting, EV charging points, and energy-saving technologies. Prologis has been appointed as the development partner, while TGW Logistics will provide automation solutions to future-proof the site.
M&S’ investment aligns with its three core capital priorities: supply chain modernisation, store rotation and renewal, and digital transformation. Earlier this year, the retailer accelerated its store renewal programme with twelve new food stores on former Homebase sites, aiming to expand to 420 larger food stores by 2027/28. The new NDC will provide the supply chain resilience and capacity required to support these expansions.
Despite challenges such as a cyberattack earlier this year, M&S has shown resilience, with food sales up 6.7 percent year-on-year in the 12 weeks to August 9, according to NielsenIQ, giving the retailer a 3.7 percent share of the UK grocery market, Reuters news report said.
The new investment in supply chain infrastructure is expected to strengthen M&S’ competitive position, reduce long-term costs, and deliver greater product availability, reinforcing its growth trajectory in the food sector.
InfotechLead.com News Desk
