Marks & Spencer has made a landmark investment, the largest in its 141-year history, as part of its strategy to double the size of its food business. This initiative highlights M&S’s commitment to enhancing its market position in food manufacturing.
Located at Daventry International Rail Freight Terminal, the new depot benefits from robust transport links and is slated 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,” stated 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 allow us to align with the volume curve as we build a bigger, better Food business. By integrating the latest, proven automation, we are future-proofing both our business and UK retail logistics while also generating 1,000 permanent jobs on site and 2,000 during the construction phase.”
Advanced Robotics
Encompassing 1.3 million sq ft, the facility will incorporate advanced automation to enhance operational efficiency, boost product availability, and accommodate growing demand. Notable features include:
- 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.
Moreover, the NDC aims to achieve a BREEAM Outstanding rating, placing it in the top 1% of sustainable buildings globally and establishing it as M&S’s flagship Plan A warehouse.
The construction phase will create over 2,000 jobs, with approximately 1,000 permanent roles covering various areas such as driving, logistics, management, and specialized technical positions like automation technicians.
Big Plans
This significant investment follows the announcement of a new 390K sq ft distribution centre at Avonmouth, designed to serve stores across the Midlands, South-west England, and South Wales.
Additionally, M&S has revealed plans to enhance its rotation and renewal programme, including establishing 12 new food stores on former Homebase sites.
The initiative aims to create 420 larger, fresher food stores and a more efficient group of 180 full-line outlets, with half of the estate projected to adopt a renewal format by 2027/28. Spanning five years, this investment will bolster the supply chain capacity needed to support these stores.
Addressing the £340 million investment, Stuart Machin, chief executive at M&S, stated on LinkedIn: “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.”
