Marks & Spencer has announced plans to invest £340m in an automated National Distribution Centre (NDC) in Northamptonshire to support its ambition to double the size of its food business.
Spanning 1.3 million sq. ft., the new facility will feature advanced automation that the retailer says will “significantly enhance operational efficiency, improve product availability on shelf and support the growing number of customers choosing M&S for their weekly shop”. Based at Daventry International Rail Freight Terminal, a proven logistics location with strong transport links, the depot is expected to open in 2029.
The news follows M&S’s announcement earlier in the year to open a new 390k sq. ft. distribution centre at Avonmouth in Bristol, serving stores in the Midlands, South-west England and South Wales.
Alex Freudmann, MD at M&S Food, commented: “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.”
M&S is still recovering from a cyber attack in April, which crippled its online operations and hit product availability in its stores. However, NielsenIQ data released yesterday showed the group’s food business recorded a 6.7% increase in sales over the 12-week period to 9 August, making it one of the strongest performers in the supermarket sector.
NAM Implications:
- ‘Ambition to double the size of its food business’
- A pointer for Co-op?
- The ambition to turn M&S into a destination for the weekly shop could be a signal picked up by other rivals…
- Maybe time for a reassessment by suppliers?
