Why M&S is Investing £340m in Automated Food Distribution
Marks & Spencer (M&S) has made a landmark investment of £340m (US$456m) in advanced automated food distribution to transform how products move from supplier to shelf.
Advanced automated food distribution systems leverage robotics, AI and data-driven logistics. For M&S, this will allow the retailer to improve efficiency, cut waste and ensure fresher food reaches customers faster.
These systems can optimise stock rotation, monitor quality in real time and streamline delivery routes, supporting both operational performance and sustainability goals.
For M&S, this investment reflects its commitment to innovation and resilience in a rapidly evolving retail landscape.
Reshaping for growth
The biggest investment in the retailer’s history, the £340m (US$456m) multi-year fund will aid in the development of an automated National Distribution Centre (NDC) in Northamptonshire. This investment will be key to doubling the size of its M&S Food business.
Alex Freudmann, MD at M&S Food, explains: “We’re transforming M&S into a destination for the weekly shop and modernising our supply chain is central to that ambition.
“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 1000 jobs permanently on site and 2000 during the construction phase.”
What will the new facility look like?
Spanning 1.3 million square feet, the new facility will feature advanced automation to significantly enhance operational efficiency, improve product availability on the shelf and support its growth of customers choosing M&S for their weekly shop.
The new facility will be based at Daventry International Rail Freight Terminal and is expected to open in 2029.
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.
Automations to be used in the facility 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
With these innovations, M&S will streamline its operations across the supply chain and in stores to restock faster and easier. Those helping M&S to achieve this include Prologis and TGW.
Paul Weston, Regional Head at Prologis UK, adds: “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.”
Craig Mitchell, Sales Project Manager TGW Limited at TGW, adds: “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.”
Sustainable distribution
In addition to these benefits, the NDC will be designed with sustainability in mind. The facility is 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.
Sustainability features of the site will include:
- Responsibly sourced and recycled building materials
- EPC A+ rating with a large-scale rooftop solar panel array
- An advanced rainwater harvesting system
- EV vehicle charging and energy-saving technologies
- A vehicle maintenance unit
