Marks & Spencer commits US$456M to modernise food supply chain with new automated distribution hub

UK – Marks & Spencer (M&S), a British retailer, has unveiled a record £340 million (US$456 million) multi-year investment to overhaul its food supply chain, marking the largest such commitment in the company’s history. 

The investment is designed to double the size of the M&S Food business, reduce costs, and cement its ambition to become a top destination for the weekly shop.

M&S Food is known for its premium-quality groceries, prepared meals, and fresh produce, offering an upmarket alternative to mass-market supermarkets while increasingly competing in the broader UK grocery sector.

Central to the plan is the creation of a 1.3 million sq ft National Distribution Centre (NDC) at Daventry International Rail Freight Terminal in Northamptonshire, due to open in 2029. 

The site will feature advanced automation that will significantly boost capacity, improve stock flow, and ensure more consistent product availability across stores, a critical step as M&S targets stronger growth in the highly competitive UK grocery sector.

Alex Freudmann, Managing Director of 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. This investment future-proofs our food business, cuts long-term costs, and ensures customers find the right products in the right place at the right time.”

The new NDC will allow M&S to handle greater volumes with greater efficiency, creating space to expand its product range and respond faster to customer demand. 

Automated systems, including pallet cranes, high-speed shuttle sorting, and hands-free picking, will streamline replenishment, reducing supply chain bottlenecks and freeing store teams to focus on service and sales.

Beyond operational gains, the investment is a cornerstone of M&S’s wider transformation programme, which includes upgrading its logistics network, accelerating store renewal, and expanding its digital capabilities. 

The company recently announced plans for a 390,000 sq ft distribution centre in Avonmouth to better serve the Midlands, South West England, and South Wales.

The Daventry site will also serve as a flagship for sustainability. Designed to achieve a BREEAM Outstanding rating, placing it among the top 1% of sustainable buildings globally, it will feature responsibly sourced materials, rooftop solar panels, rainwater harvesting, EV charging points, and advanced energy-saving technologies.

Construction will create over 2,000 jobs, with 1,000 permanent roles once operational. Prologis is leading development, while TGW Logistics is providing the automation systems.

Paul Weston of Prologis said the site would be “a long-term infrastructure platform tailored to M&S’ future supply chain,” while TGW’s Craig Mitchell called it “a logistics warehouse fit for future retail demands and a benchmark for efficiency in the UK grocery sector.”

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