Inside M&S's Automated Food Distribution Centre

Marks & Spencer is investing £340m (US$457.4m) in advanced automated food distribution a move designed to alter how its products are moved from suppliers to the shelves.

This investment represents a major step in M&S's broader growth strategy.

The use of advanced automated food distribution systems, which incorporate robotics, AI, and data-driven logistics, could allow M&S to enhance efficiency, reduce waste and ensure fresher food reaches customers more quickly.

Such systems have the potential to optimise stock rotation, monitor quality in real time, and streamline delivery routes which could support both operational performance and sustainability objectives.

For M&S this investment may reflect its commitment to innovation and resilience.

A strategy for growth

This is the largest single investment in M&S’s history. The £340m multi-year fund is set to support the creation of an automated National Distribution Centre (NDC) in Northamptonshire.

This development is a core component of the strategy to double the size of the M&S Food business.

Alex Freudmann, Managing Director 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.”

The new site is intended to strengthen the M&S network and manage increasing volumes as the Food business expands.

Alex adds: “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 2,000 during the construction phase.”

“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 2,000 during the construction phase.”

The new automated facility

The new facility will cover 120,774 sq m (1.3 million square feet) and will be located at the Daventry International Rail Freight Terminal with an expected opening in 2029.

It will feature advanced automation designed to improve operational efficiency and product availability.

The construction phase is projected to create over 2,000 jobs, with approximately 1,000 permanent roles becoming available once the site is fully operational.

These roles will span driving logistics management and technical positions such as automation technicians. Key automations to be integrated into 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

These innovations are expected to streamline operations across the supply chain and in stores, enabling faster and easier restocking.

M&S is collaborating with partners Prologis and TGW to deliver the project.

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’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 at TGW Limited, 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 food distribution

In addition to operational benefits, the NDC has been designed with sustainability as a key consideration.

The facility is aiming to achieve a BREEAM 'outstanding' rating, which would place it in the top 1% of sustainable buildings worldwide and establish it as M&S’s flagship Plan A warehouse.

The site's sustainability features will include responsibly sourced and recycled building materials and an EPC A+ rating supported by a large-scale rooftop solar panel array.

It will also incorporate an advanced rainwater harvesting system, EV charging, and other energy-saving technologies alongside a dedicated vehicle maintenance unit.