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Tesco has announced plans for a new distribution centre at DP World London Gateway, set to open in 2029.
The supermarket said the site would strengthen its logistics network and support growth across its store estate. It described the move as a long-term investment in ensuring operations remain “fit for the future”.
The facility will be a modern, energy-efficient building designed to meet BREEAM Outstanding standards. Tesco is working with logistics firm Witron to deliver the project, which aims to incorporate advanced technology and boost network capacity.
Tesco UK distribution and fulfilment director Andrew Woolfenden said: “Our distribution network is vital for ensuring customers receive products at the right place, time and condition. As demand grows across our store network, we’re excited to partner with Witron and DP World to develop a distribution centre that leverages the latest technology, enhancing our supply chain and supporting our decarbonisation goals.
“By locating at London Gateway, we can also take full advantage of the seaport and rail infrastructure.”
Witron chief executive Helmut Prieschenk said the project would be “a lighthouse” for the company: “With the latest technology and machinery, once fully operational, this represents a large-scale project for dry grocery distribution.
“In terms of end-to-end integration this is a lighthouse project for Witron – which ensures premium store service, an ergonomic, safe and sustainable environment and benefits the whole value chain.”
DP World group chairman and chief executive Sultan Ahmed bin Sulayem added: “The significant investment announced today by Tesco, one of the world’s leading retailers, is a proud moment for DP World and a vote of confidence in the growing role London Gateway plays in the UK economy.”
Last month Tesco announced it had welcomed rising sales and a growing market share in Q1 despite an “intensely competitive” market, with group like-for-like sales up by 4.6% to £16.4bn over the period.
In the 13 weeks to 24 May, its UK market share grew by +44bps year-on-year to 28%, with 24 consecutive four-week periods of share gains.
