M&S to invest £340m as it doubles food business
The investment will fund the development of an automated NDC in Northamptonshire as the group looks to double the size of its food business
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Marks and Spencer (M&S) will open a new food hub after announcing a £340m investment in its food supply chain, the largest in its history.
This multi-year investment will fund the development of an automated National Distribution Centre (NDC) in Northamptonshire as the group looks to double the size of its food business.
The new facility will span 1.3 million square feet and feature advanced automation to “significantly enhance” operational efficiency and improve product availability on shelf.
Based at Daventry International Rail Freight Terminal, the depot is expected to open in 2029.
It comes as M&S said its three main capital investment priorities remain supply chain, store rotation and renewal, and digital and technology.
Earlier this year, M&S announced an acceleration of its store rotation and renewal programme this year, including twelve new food stores on former Homebase sites. The programme aims to create 420 bigger Food stores and a more productive group of 180 full line stores, with half the estate expected to be in renewal format by 2027/28.
Phased over five years, this investment will support the acceleration of the rotation and renewal programme, creating the capacity needed in the supply chain to support these stores.
The construction phase of the new NDC will create over 2,000 jobs, with around 1,000 permanent roles once the site is fully operational, covering driving, logistics, management and more technical roles such as automation technicians.
Alex Freudmann, MD at 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.”
He added: “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.”
