Marks & Spencer to Invest £340m in Automated Food Distribution Centre

Marks & Spencer (LON:MKS) has announced a record £340 million investment in its food supply chain with plans to build a fully automated National Distribution Centre (NDC) in Northamptonshire.

The company said in a release on Thursday that the 1.3 million sq ft site, located at Daventry International Rail Freight Terminal, is due to open in 2029 and will be the largest single supply chain investment in M&S history. 

Marks & Spencer shares closed Thursday’s session down around 0.1% at 355.8p.

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MKS said the facility will use advanced automation to increase efficiency, boost product availability and lower long-term operating costs, supporting the company’s ambition to double the size of its food business.

Alex Freudmann, Managing Director at M&S Food, said: “We’re transforming M&S into a destination for the weekly shop and modernising our supply chain is central to that ambition. 

He added that the investment will boost capacity for future growth, lower the company’s cost to serve over the long term, and improve product availability. 

The project is expected to create more than 2,000 jobs during construction and around 1,000 permanent roles once operational, covering logistics, management and technical positions.

The firm added that the centre is designed with sustainability in mind, and aims to achieve a BREEAM Outstanding rating, placing it among the top 1% of sustainable buildings worldwide. 

Features will include rooftop solar panels, rainwater harvesting, EV charging and responsibly sourced building materials.

Prologis is acting as development partner while TGW Logistics will supply automation systems, which include pallet cranes, high-speed shuttles and hands-free picking technology.