M&S Invests £340m in Sustainable Automated Logistics Hub

Marks & Spencer has started construction on an automated National Distribution Centre in Northamptonshire that will feature recycled materials, rooftop solar panels and rainwater harvesting. The retailer is investing £340m (US$460m) in the facility to modernise its food supply chains and reduce long-term operational costs.

According to Marks & Spencer, more than 200 stores will receive deliveries from the NDC. The 1.3 million sq ft site is designed to achieve a BREEAM Outstanding rating through multiple environmental features including EV charging infrastructure and a vehicle maintenance unit. The facility represents one of the largest single investments in the retailer's supply chain infrastructure.

Building for environmental standards

The NDC will use pallet cranes, high-speed shuttles and hands-free picking systems to manage stock movements.

These automated systems are designed to increase efficiency whilst reducing the physical demands on warehouse staff.

Kevin Bennett, CEO of Gist and Food Logistics Director at Marks & Spencer, says the site could create 1,000 jobs when operational.

"Starting the build on this site marks a major step in transforming M&S into a true destination for the weekly shop, with a modernised supply chain at the heart of that ambition," says Kevin.

"This investment will boost capacity for future growth, lower our long-term cost to serve and improve product availability so customers get the right products in the right place at the right time."

The company held a steel-signing ceremony with Michelle Elliman from Marks & Spencer Rugby store, Stuart Andrew MP for Daventry and Shadow Secretary of State for Health and Social Care, and James Hemstock, Vice President of Capital Deployment at Prologis UK. The ceremony marked the start of construction for what Marks & Spencer describes as its largest supply chain development.

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Stuart Andrew says the investment shows confidence in the local area. "This area has for a long time been at the heart of the UK's logistic network and this investment shows confidence in the local people and businesses," says Stuart.

Farming with Nature programme

Marks & Spencer launched its Farming with Nature programme in 2021 to work with Select Farmers on agriculture practices that could enhance biodiversity. The company has partnered with Agrisound, The Wildlife Trusts, LEAF and the Farming and Wildlife Advisory Group to trial technologies that monitor pollinators, soil carbon and biodiversity.

According to Marks & Spencer, 9,500 hectares are being protected and enhanced through measures including reduced ploughing, cover crops and dedicated wildlife habitats. The company states that more than two-thirds of its food sales come from fruit, vegetables, vegetarian and vegan products.

The retailer has expanded plant-based offerings through its Plant Kitchen and Veggie ranges. These initiatives could help reduce environmental impacts associated with meat and dairy production, though the company has not disclosed specific emission reduction figures from these product lines.

James Hemstock says collaboration shaped the project from the start. "Working closely with M&S, Gist, Winvic and West Northamptonshire Council, this project from the outset has been shaped by a shared commitment to quality, sustainability and long-term value," says James.

Net zero by 2040

Marks & Spencer aims to become a net zero business by 2040. The company states that low-carbon farming systems that reduce emissions, protect biodiversity, improve soil health and support wildlife habitats are part of this target.

The automated distribution centre could reduce delivery frequency to stores by improving stock management accuracy.

According to Kevin, this could allow workers to spend more time with customers on shop floors rather than managing stockrooms. The improved efficiency aims to enhance the customer experience whilst optimising staff deployment.

The NDC will use automation to handle restocking processes across the retailer's network.

The company says the facility will increase capacity to support growth in its food business while reducing costs over time.

Marks & Spencer's sustainability efforts include working with growers through advisory services and training programmes. The company has not specified how much carbon reduction the new distribution centre could deliver compared to existing facilities.