UK supermarket Marks & Spencer (M&S) has unveiled a £340 million investment in an automated National Distribution Centre (NDC), with the aim of doubling the size of the M&S Food business.
M&S said the five-year phased investment was its “largest ever”, and would see the construction of a 1.3 million sq ft facility in Northamptonshire to open in 2029, and will be based at Daventry International Rail Freight Terminal.
The new facility will reportedly feature “advanced automation”, aiming to enhance operational efficiency, improve product availability on shelf and support the number of customers shopping at M&S.
The news follows an announcement earlier in the year to open a new 390k sq ft distribution centre at Avonmouth in Bristol, serving stores in the Midlands, South-west England and South Wales.
The retailer’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 12 new food stores on former Homebase sites.
The programme aims to create 420 bigger, fresher M&S 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.
According to M&S, its new NDC will create more than 2,000 jobs, with around 1,000 permanent roles once the site is fully operational, covering driving, logistics, management and technical roles such as automation technicians.
Distribution centre will focus on sustainability
The new depot will incorporate 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
The site will also include recycled building materials, a rainwater harvesting system and EV vehicle chargers as part of the retailer’s plan to improve the sustainability of its operations.
Alex Freudmann, managing director 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.”
