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M&S has announced a landmark £340m investment in a new state-of-the-art food distribution centre – the largest supply chain investment in its history.
The 1.3m sq ft automated National Distribution Centre (NDC), based at Daventry International Rail Freight Terminal, is due to open in 2029.
The site will support the retailer’s ambition to double the size of its food business and marks a major step in its strategy to become a destination for the weekly shop.
The facility will use advanced automation to boost efficiency, improve product availability, and lower costs in the long term. It will also create 2,000 construction jobs and around 1,000 permanent roles once operational.
M&S Food managing director Alex Freudmann 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 1000 jobs permanently on site and 2000 during the construction phase.”
The depot will feature automated pallet cranes, high-speed shuttle systems, and hands-free picking solutions that load items directly into store-ready cages – innovations designed to streamline operations both in the supply chain and in-store.
Sustainability will also be central to the project, with the site expected to achieve a BREEAM Outstanding rating, placing it among the top 1% of sustainable buildings worldwide. Plans include an EPC A+ rating, rooftop solar panels, rainwater harvesting systems, EV charging points and responsibly sourced materials.
The announcement follows M&S’s investment earlier this year in a 390,000 sq ft distribution centre at Avonmouth, Bristol, which will serve stores across the Midlands, South West and South Wales.
The retailer said its capital investment priorities remain focused on supply chain, store renewal and digital.
As part of its estate transformation, M&S is accelerating its rotation and renewal programme with 12 new food stores opening this year on former Homebase sites. By 2027/28, it expects half of its food estate to be in the “renewal” format.
The business has appointed Prologis as development partner and TGW Logistics as automation partner on the Northamptonshire site.
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