Landmark M&S supply chain investment brings 1.3m sq ft sustainable distribution hub to Northamptonshire

Landmark M&S supply chain investment brings 1.3m sq ft sustainable distribution hub to Northamptonshire

(IN BRIEF) Marks & Spencer (M&S) has announced a £340 million investment in a new automated National Distribution Centre (NDC) in Northamptonshire, marking the largest supply chain investment in its history. The 1.3 million sq ft facility, opening in 2029, will support the company’s strategy to double the size of its food business by boosting capacity, lowering long-term costs, and improving product availability. Built at Daventry International Rail Freight Terminal, the site will incorporate advanced automation, from pallet cranes and high-speed shuttle systems to hands-free picking technology, while creating over 2,000 jobs during construction and 1,000 permanent roles. Designed to achieve a BREEAM Outstanding rating, the facility will serve as M&S’ leading Plan A warehouse, combining sustainability with innovation through recycled materials, solar panels, and rainwater harvesting systems. Partnering with Prologis and TGW Logistics, M&S positions this investment as a cornerstone of its supply chain transformation to deliver future growth.

(PRESS RELEASE) LONDON, 22-Aug-2025 — /EuropaWire/ — Marks & Spencer (M&S) has unveiled its biggest supply chain investment to date, committing £340 million to the creation of a state-of-the-art National Distribution Centre (NDC) in Northamptonshire. Scheduled to open in 2029, the 1.3 million square foot facility will be fully automated and designed to achieve a BREEAM Outstanding rating, making it the company’s flagship Plan A warehouse and a key pillar of its “Reshaping for Growth” strategy.

The new NDC, located at the Daventry International Rail Freight Terminal, will form the backbone of M&S’ ambition to double the size of its food business. Using advanced automation, the site will improve product availability, streamline logistics, and lower long-term operating costs, while supporting the company’s transformation into a destination for the weekly shop.

Alex Freudmann, Managing Director of M&S Food, explained: “This is a transformational step in modernising our supply chain. By investing in automation and capacity now, we’re preparing for future growth, ensuring our customers can always find the right products, and creating thousands of jobs. This facility future-proofs our food business while strengthening UK retail logistics.”

The construction phase will generate over 2,000 jobs, with a further 1,000 permanent roles across driving, logistics, and technical functions once the centre becomes operational. Among the innovations being deployed are an automated pallet crane for ambient goods, a high-speed shuttle system for stock storage, and hands-free picking that loads directly onto delivery cages. These technologies will enhance efficiency both in the distribution network and in stores, enabling staff to spend more time with customers.

Sustainability has been placed at the heart of the project. The new depot will be built using responsibly sourced and recycled materials, feature an EPC A+ rating and large-scale rooftop solar panels, and integrate advanced rainwater harvesting, energy-saving technologies, and EV charging infrastructure. A vehicle maintenance unit will also be included to further improve operational resilience.

Development partner Prologis and automation partner TGW Logistics are collaborating with M&S to deliver the project. Paul Weston, Regional Head at Prologis UK, said: “This is more than real estate; it’s a long-term infrastructure platform that balances automation, sustainability, and smart energy systems, helping M&S achieve its growth and net zero ambitions.” Craig Mitchell of TGW Logistics added: “Together, we are building a logistics hub that redefines what’s possible in UK grocery distribution.”

The announcement builds on M&S’ recent supply chain and store renewal efforts, including the Avonmouth distribution centre and a wider programme to rotate and modernise its store estate. With 12 new food stores and several renewals already trading ahead of target, M&S is creating a bigger, fresher, and more productive store network. The Northamptonshire NDC will ensure the supply chain has the capacity to match this accelerated growth, ultimately reshaping M&S for the next generation of shoppers.

Notes to editor

• As we continue to deliver the Reshaping for Growth strategy, we are accelerating our store rotation and renewal programme. At the end of FY2425, we had 230 full line stores and 324 Foodhalls.
• During 2024/25 six Food stores and two Foodhalls in Full Line stores opened. These averaged c.15,000 sq ft, enabling more customers to shop the full range. In a strong year, Food sales outperformed target by c.20%.
• Nine new renewal stores and one extension traded ahead of target, with renewal stores including Chancery Lane and Fosse Park. Food sales in Chancery Lane were up c.35% on previous levels.
• We’ve also taken several steps in the last financial year to maximise efficiency of our supply chain, particularly ahead of the festive period when our volume is three times greater than any other time of year.

These included:

• Reorganising our Bradford National Distribution Centre, reconfiguring the floorspace and increasing the height available for storage
• Maximising the efficiency of case sizes and trays
• More than doubling the number of direct deliveries from our two national distribution centres by freeing up more capacity in our regional depots for improved availability in store
• Changing the pattern of stock arriving into stores, meaning our customers can always get exciting gifts and super fresh products when they want it
• These strategic investments have increased network capacity by 41%, as well as helping to streamline processes, drive efficiency and provide us with greater capacity to innovate and prioritise product quality and value.

Media Contact:

M&S Corporate Press Office: +44 (0)20 8718 1919  corporate.press@marks-and-spencer.com

SOURCE: Marks and Spencer