The landmark investment is the largest Marks & Spencer has made in its 141-year history and forms part of a strategy to double the size of its food business.
Based at Daventry International Rail Freight Terminal, the depot will benefit from strong transport links and is set to open in 2029.
“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, M&S Food managing director.
“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.”
Advanced robotics
The 1.3 million sq ft facility will feature advanced automation to enhance operational efficiency, improve product availability on shelf, and support the growing demand. This includes:
- 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 NDC is also expected to achieve a BREEAM Outstanding rating – placing it in the top 1% of sustainable buildings globally and becoming M&S’ flagship Plan A warehouse.
The construction phase of the 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 more technical roles such as automation technicians.
Big plans
This move follows the announcement made 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.
It also comes after M&S announced it will be stepping up its rotation and renewal programme, including 12 new food stores on former Homebase sites.
The programme aims to create 420 bigger, fresher 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. Phased over five years, this investment will support the acceleration of the rotation and renewal programme, creating the capacity needed in the supply chain to support these stores.
Commenting on the £340 million investment, Stuart Machin, chief executive at M&S wrote on Linked In: “A huge step forward in our reshaping M&S for growth plans as we accelerate investment in modernising our food supply chain.
“This investment will drive growth, make us more efficient, and ultimately help us serve our customers better.”
