Marks & Spencer has announced a £340 million investment in a new automated food distribution centre in Daventry, its largest ever supply chain project, as the retailer pursues its ambition to double the size of its food business.
The 1.3 million square foot facility, located at the Daventry International Rail Freight Terminal, is scheduled to open in 2029. It is designed to create 2,000 construction jobs during the build phase and 1,000 permanent roles once operational, according to the company.
The fully automated National Distribution Centre will feature pallet cranes, shuttle systems, and touch-free picking technology, loading goods directly into store-ready cages. Sustainability measures include rooftop solar panels, rainwater harvesting, electric vehicle charging points, and a target of BREEAM Outstanding certification, placing the project within the top 1% of buildings globally for environmental performance.
Alex Freudmann, managing director of food at Marks & Spencer, said: “We’re making our biggest-ever investment in the supply chain to help us double the size of our food business and become a destination for the weekly shop. This new, automated site in Daventry will slow the cost to serve and improve availability for customers”.
The move follows a strong trading performance, with food sales up 6.7% year-on-year in the 12 weeks to 9 August, according to NielsenIQ data cited by the company. M&S currently holds a 3.7% share of the UK grocery market. The rebound came after a cyberattack in April disrupted the retailer’s online operations, making this investment announcement a significant positive milestone in a challenging year.
The retailer said the investment will be funded from existing cash resources and will not affect its dividend policy. Planning permission for the Daventry site was submitted earlier this year and remains subject to approval.
