Marks & Spencer to pour £340m into new National Distribution Centre

(Sharecast News) - British retailer Marks & Spencer has unveiled plans for a major expansion of its food logistics network, committing to the largest supply chain investment in its history as it sharpens its focus on becoming a weekly grocery destination. M&S will invest £340m in a new 1.3m square foot automated National Distribution Centre at Daventry, set to open in 2029, with the facility significantly enhancing operational efficiency and reducing long-term costs, with advanced automation expected to streamline throughput and bolster margins.

The FTSE 100-listed firm also said the new site will support its ambition to double the size of its food business, creating 2,000 construction jobs and around 1,000 permanent roles once operational. The investment was expected to be funded through existing cash flows, with no change to dividend policy or capital allocation guidance.

M&S' new facility will incorporate automated pallet cranes, rapid shuttle mechanisms, and touch-free picking systems that transfer goods straight into store-ready cages -technology aimed at driving efficiency across both warehouse logistics and shop-floor replenishment.

The announcement follows a period of strong trading in M&S' food division, which saw like-for-like sales rise 11.1% in the first quarter, and a previous announcement that it will invest in a 390,000 square foot distribution centre in Bristol, which will serve locations across the Midlands, South West and South Wales.

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 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 2000 during the construction phase."

As of 0815 BST, M&S shares were down 0.21% at 355.34p.

Reporting by Iain Gilbert at Sharecast.com