Food Supply Chains: M&S’ £340m Automated Distribution Centre

Automated food distribution is becoming more popular due to reducing contamination risks, reducing human error and increase in efficiency.

Marks & Spencer (M&S) is beginning construction on its “new state-of-the-art” automated National Distribution Centre (NDC) in Northamptonshire, UK.

The company is making a £340m (US$460m) investment to modernise and future-proof its food supply chains.

Efficient food distribution

According to M&S, more than 200 stores are set to be serviced by the NDC.

The aim is to support colleagues and workers with faster deliveries and more efficient stock and fill processes.

By creating more efficient deliveries, workers and colleagues can spend more time on shop floors with customers.

The NDC is set to use advanced automation to boost efficiency, accuracy and ease of restocking, including pallet cranes, high speed shuttles and hands-free picking.

“Starting the build on this site marks a major step in transforming M&S into a true destination for the weekly shop, with a modernised supply chain at the heart of that ambition,” says Kevin Bennett, CEO Gist / Food Logistics Director at M&S.

“This investment will boost capacity for future growth, lower our long‑term cost to serve and improve product availability so customers get the right products in the right place at the right time.

“With construction underway, this new site strengthens our network and puts us ahead of the volume curve as we build a bigger, better food business. 

“By deploying the latest proven automation, we’re future‑proofing our operations and UK retail logistics, while creating 1,000 permanent jobs on site.”

The start of construction

To mark the start of construction, Michelle Elliman, from M&S Rugby store joined Kevin Bennett, CEO of Gist (M&S Food’s logistics arm), Stuart Andrew, MP for Daventry and Shadow Secretary of State for Health and Social Care and James Hemstock, Vice President of Capital Deployment at Prologis UK met to for a steel-signing ceremony.

The ceremony recognised the start of construction for the 1.3 million sqft NDC.

To date, this celebrates M&S’ largest supply chain event in its history, creating a vast step in doubling the size of the food business.

The site is set to significantly increase capacity, reduce long-term cost to serve and improve product availability for customers.

“I welcome the investment by Marks & Spencer into the new distribution centre in Daventry. It was great to visit the impressive site and meet the people involved and learn about the future plans for the centre,” says Stuart Andrew, MP for Daventry and Shadow Secretary of State for Health and Social Care.

“This area has for a long time been at the heart of the UK’s logistic network and this investment shows confidence in the local people and businesses.” 

The NDC is designed to achieve a BREEAM Outstanding rating, with the following sustainability features: 

• Recycled materials
• Rooftop solar
• Rainwater harvesting
• EV charging
• A dedicated vehicle maintenance unit.

M&S’ sustainable food use

M&S is committed to promoting sustainable eating by addressing the environmental and social challenges associated with food production. 

Through a dedicated team of experts, M&S is developing innovative solutions to adapt its food business to climate change while helping customers make lower-impact choices without compromising on quality or flavour. 

The company is focused on low-carbon farming systems that reduce emissions, protect biodiversity, improve soil health and support wildlife habitats. 

“This construction milestone reflects the incredible strength of collaboration behind this project,” says James Hemstock, Vice President of Capital Deployment at Prologis UK.

“Working closely with M&S, Gist, Winvic and West Northamptonshire Council, this project from the outset has been shaped by a shared commitment to quality, sustainability and long-term value." 

M&S has also expanded its plant-based offerings through initiatives such as the Plant Kitchen and Veggie ranges, recognising that encouraging more plant-based diets can help reduce the environmental impact of meat and dairy production. 

Sustainability efforts are embedded throughout the business, with more than two-thirds of M&S food sales coming from fruit, vegetables, vegetarian and vegan products. 

Through its “Farming with Nature” programme, launched in 2021, M&S works closely with Select Farmers to implement regenerative agriculture practices, enhance biodiversity and protect wildlife habitats across the UK. 

The company has partnered with organisations such as Agrisound, The Wildlife Trusts, LEAF and the Farming and Wildlife Advisory Group to trial technologies that monitor pollinators, soil carbon and biodiversity, while supporting growers with sustainability advice and training. 

Initiatives include reducing ploughing, planting cover crops and dedicating land to wildlife habitats, with 9,500 hectares already being protected and enhanced. 

M&S aims to become a net zero business by 2040, recognising that sustainable farming is essential to reducing emissions, protecting ecosystems and ensuring resilient food production for the future.