M&S invests 400 million in automated food hub

Marks & Spencer plans to invest 340 million pounds (400 million euros) in an automated distribution centre in Daventry (Northamptonshire). This way, the retailer wants to increase shelf availability, speed up logistics and double the size of its food division.

Biggest investment ever

The new 120,000 sqm hub at the Daventry International Rail Freight Terminal should open in 2029, if all goes well. The retailer will use extensive automation there to streamline processes, reduce costs and improve throughput to stores. According to M&S, the centre represents the largest investment in logistics in the company’s history, and should eventually be able to double its food business.

The hub is betting heavily on automation, including an automatic crane for long-life ambient products and a high-speed shuttle for sorting and storing stock. Still, at full capacity, the hub should create about a thousand permanent jobs, ranging from drivers and logistics workers to management and automation technicians.

“Destination for weekly shopping”

“We’re transforming M&S into a destination for the weekly shop and modernising our supply chain is central to that ambition”, M&S Food Managing Director Alex Freudmann said. “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.”

In the accompanying press release, M&S says it is sticking to three investment priorities: logistics, store renewal and technology. Through automation, the chain aims to reduce ‘cost to serve’ in the long run and increase delivery reliability.