Marks & Spencer is making its largest-ever supply chain investment with a £340 million commitment to build a cutting-edge automated food distribution centre in Northamptonshire. The 1.3 million sq. ft facility, scheduled to open in 2029, is a cornerstone of the retailer’s strategy to double the size of its food business and become a leading destination for weekly grocery shopping.

The new warehouse will be located at Daventry’s international rail freight terminal, a strategic site with direct connections to the West Coast main line. This location was chosen to optimise logistics and support efficient distribution to stores across the Midlands and northern Home Counties. The development is being led by real estate group Prologis, with TGW appointed as the automation partner to deliver the advanced technology infrastructure.

Driving Efficiency Through Automation and Job Creation

The facility will feature state-of-the-art automation, including robotic cranes and mobile storage units, designed to streamline operations, reduce long-term costs, and improve product availability. This investment marks a significant shift in how M&S manages its supply chain, with automation playing a vital role in future-proofing the business.

In addition to technological innovation, the project will have a substantial economic impact. It is expected to create 2,000 jobs during the construction phase and a further 1,000 permanent roles once operational. This job creation aligns with M&S’s broader commitment to supporting local communities and driving regional growth.

Alex Freudmann, Managing Director of M&S Food, emphasised the strategic importance of the investment: “We are transforming M&S into a destination for the weekly shop, and modernising our supply chain is central to that ambition. By using the latest, proven automation, we are futureproofing both our business and UK retail logistics.”

Expanding Store Network and Navigating Challenges

The warehouse investment is part of a wider plan to expand M&S’s food hall network and enhance its retail footprint. The company aims to grow its number of food halls from 324 to 420 over the next four years, with twelve new locations expected to open by the end of this year. Store sizes are also increasing significantly, with new food halls averaging 14,000 sq. ft, up from 8,000 sq. ft last year, allowing for a broader product range and improved customer experience.

Despite facing challenges earlier this year, including a cyberattack in April that disrupted deliveries and is projected to reduce profits by £300 million, M&S food sales have shown resilience. Sales rose 8.7% to £9 billion in the last fiscal year, and recent data from NielsenIQ indicates a 6.7% year-on-year increase over the summer. However, shares in M&S have declined by more than 8% this year, reflecting broader market pressures.