M&S is to build a new £340m automated food distribution centre in Northamptonshire in plans to double the size of its food business.
The facility at Daventry International Rail Freight Terminal will span 1.3 million sq ft and represents M&S’s biggest supply chain investment in its history.
“We’re transforming M&S into a destination for the weekly shop and modernising our supply chain is central to that ambition,” said M&S Food MD Alex Freudmann.
“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.”
The new DC is expected to open in 2029. It follows M&S’s announcement earlier this year of plans to open another 390,000 sq ft DC at Avonmouth in Bristol, serving stores in the Midlands, south west England and south Wales.
The new Northamptonshire food DC will be equipped with an automated pallet crane for handling long-life ambient products, a high-speed shuttle system for sorting and storing stock, and a hands-free picking solution that loads items directly on to store-ready delivery cages.
M&S’s three main capital investment priorities are supply chain, store rotation and renewal, and digital & technology.
Earlier this year, it announced an acceleration of its store 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.
The Grocer revealed earlier this month that M&S had overtaken Co-op to become the UK’s seventh-biggest grocer in food and drink sales, according to unpublished Worldpanel by Numerator data seen by The Grocer.
M&S’s food and drink market share was 5.1% in the 52 weeks to 13 July 2025, compared with Co-op’s 4.7%. The pair had swapped places since the previous 52-week period, when M&S had a 4.7% food and drink market share and Co-op had 4.9%.
M&S was two placed above Waitrose (with 4.5% food and drink market share), despite being hit by a major cyberattack in April.
The new automated DC will also be made with responsibly sourced and recycled building materials, according to M&S. It will have an EPC A+ rating, with large-scale rooftop solar panels, and an advanced rainwater harvesting system,
Prologis is the development partner and TGW Logistics has been appointed as the automation partner for the project.
Prologis UK regional head Paul Westone said: “This development goes beyond real estate – it’s a long-term infrastructure platform tailored to M&S’ future supply chain. Together, we’re combining automation sustainability and smart energy systems to deliver a site that supports growth, resilience and net zero ambitions.”
TGW sales project manager Craig Mitchell said: “TGW is extremely proud to be partnering with M&S on this transformation journey. Our collaboration is built on mutual trust, shared ambition, and a commitment to delivering state-of-the-art automation to support M&S’s long-term growth. Together, we are creating a logistics warehouse fit for future retail demands, one that sets a new benchmark for innovation and efficiency in the UK grocery sector.”
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