Marks & Spencer (M&S) will invest £340million in its food supply chain to fund a new automated National Distribution Centre (NDC). The move aims to unlock growth as M&S looks to double the size of its Food business and become “a destination” for weekly food shops.

Featuring advanced automation, the new NDC – set to open in 2029 – will significantly enhance operational efficiency and improve on-shelf availability for the growing number of customers choosing M&S for larger food shops.

“We’re transforming M&S into a destination for the weekly shop and modernising our supply chain is central to that ambition.” said Alex Freudmann, MD at M&S Food. “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.”

Food continues to perform strongly at M&S, with NielsenIQ data released earlier this week showing the retailer recorded a +6.7% year-on-year increase in food sales over the 12 weeks to 09 August 2025.

Supporting a bigger, better Food business

The multi-year investment in the 1.3million sq ft depot, which will be located near Daventry International Rail Freight Terminal, will create 2,000+ jobs during its construction phase. Once completed and fully operational, the NDC will create a further 1,000 permanent roles across driving, logistics, management and technology.

“Our new site will strengthen our network and help us get ahead of the volume curve as we build a bigger, better Food business,” Freudmann added. “By using the latest proven automation, we are future-proofing both our business and UK retail logistics, as well as creating jobs.”

The new depot will incorporate the latest automation, including pallet cranes for handling long-life ambient products, high-speed shuttle systems for sorting and storing stock, as well as hands-free picking solutions. These innovations will help streamline M&S’ supply chain and store operations, making re-stocking faster and easier for colleagues.

TGW Logistics has been appointed as M&S’ logistics partner supporting the NDC. Craig Mitchell, its Sales Project Manager, said it would deliver “state of the art automation to support M&S’ long-term growth.” He added the logistics warehouse would be “fit for future retail demands” and would “set a new benchmark for innovation and efficiency in the UK grocery sector.”

A flagship Plan A warehouse

M&S also aims to make the NDC its flagship ‘Plan A’ warehouse, by building in sustainability at its core. This will include responsibly sourced and recycled building materials, large scale rooftop solar panels, rainwater harvesting systems and EV vehicle charging and energy-saving technologies.

“This development goes beyond real estate – it’s a long-term infrastructure platform tailored to M&S’ future supply chain,” said Paul Weston, Regional Head at Prologis UK, which has been selected as the development partner for the NDC.

“We’re combining automation sustainability and smart energy systems to deliver a site that supports growth, resilience and net zero ambitions,” Weston added.