New £340m facility is retailer’s largest ever investment in its supply chain and will help ‘unlock’ target to double its food business
M&S has announced the largest ever investment in its supply chain with a new £340 million National Distribution Centre (NDC) built around sustainability and cutting edge automation.
The 1.3m sq ft facility will be based at Daventry International Rail Freight Terminal in Northamptonshire, and is described as a “key unlock” in M&S’ plans to double its food business.
Expected to open in 2029, the site will also become M&S’ flagship Plan A warehouse with sustainability features including recycled building materials, advanced rainwater harvesting, a large-scale rooftop solar array, EV charging and a vehicle maintenance unit.
“We’re transforming M&S into a destination for the weekly shop and modernising our supply chain is central to that ambition,” said Alex Freudmann, MD at M&S Food.
“This investment will boost capacity for future growth, lower our cost to serve over the long-term, and improve product availability.”
Writing on LinkedIn, he added: ”It’s a landmark moment for M&S, and one that reflects the ambition that [M&S CEO] Stuart Machin laid down for us - to double the size of our Food business.”
The news comes as last month M&S overtook The Co-op to become the UK’s seventh largest grocery retailer, as revealed by trade magazine the Grocer using unpublishing Worldpanel data.
“Our new site will strengthen our network and help us get ahead of the volume curve as we build a bigger, better food business,” Freudmann said. “By using the latest, proven automation, we are future-proofing both our business and UK retail logistics, as well as creating 1000 jobs permanently on site and 2000 during the construction phase.”
Earlier this year, M&S announced it would open 12 new food stores on former Homebase sites with half the estate expected to be renewed by 2028.
The new NDC is designed to accelerate this store improvement programme, while creating around 1,000 new permanent jobs in driving, logistics, management and automation technicians.
Automation technologies at the site will include an automated pallet crane, a high-speed shuttle system for sorting and storing stock and a hands-free picking solution that loads items onto store-ready delivery cages, with the aim of streamlining operations and making restocking faster and easier.
The NDC is also expected to achieve a sustainable building certification (BREEAM) rating of outstanding, placing it in the top one per cent of sustainable buildings globally.
“This development goes beyond real estate – it’s a long-term infrastructure platform tailored to M&S’ future supply chain,” said Paul Weston, regional head at development partner Prologis UK.
“Together, we’re combining automation sustainability and smart energy systems to deliver a site that supports growth, resilience and net zero ambitions.”
