M&S confirms state-of-the-art logistics hub in the East Midlands

Posted on Thursday 21 August 2025

Marks & Spencer, has confirmed that it is building a £340 million state-of-the-art automated national distribution centre  at Prologis’ RFI DIRFT III scheme at Daventry in the East Midlands after a West Northamptonshire strategic planning committee met to discuss the proposal on Tuesday this week – where plans had been recommended for approval.

By Liza Helps, Property Editor, Logistics Matters

THE PROJECT, which Logistics Matters exclusively reported in May this year, is set to facilitate the doubling of M&S’s food business.

M&S Food managing director Alex Freudmann, 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.

“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.”

Spanning 1.29 million ft2, the new facility will feature advanced automation to significantly enhance operational efficiency, improve product availability on shelf and support the growing number of customers choosing M&S for their weekly shop.

The highly sustainable hub, being developed by Prologis, is expected to open in 2029. Prologis UK Regional Head Paul Weston, noted: “This development goes beyond real estate – it’s a long-term infrastructure platform tailored to M&S’ future supply chain. Together, we’re combining automation sustainability and smart energy systems to deliver a site that supports growth, resilience and net zero ambitions.”

The BREEAM Outstanding and an EPC A+ rated project envisages three separate buildings with a 1,155,438 ft2 main warehouse building, with eaves heights up to 33m to allow for automation, served by 186 dock and four level access doors. The main building will also incorporate a three-storey main office and four two-storey hub offices. In addition there will be a 130,513 ft2 Recycling and Reclamation Unit (RRU) with integrated two-storey office space as well as a 13,303 ft2 vehicle maintenance unit.

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.

Working with automation specialist TGW Logistics, the new depot will incorporate the latest proven automation, including an automated pallet crane for handling long-life ambient products, a high-speed shuttle system for sorting and storing stock and a hands-free picking solution that loads items directly onto store-ready delivery cages.

M&S said: “These innovations will streamline operations across the supply chain and in stores, making restocking faster and easier for retail colleagues.”

The proposals would also generate business rate revenue of around £4.6 million per year, of which half would be retained by West Northamptonshire Council, and help sustain increased spending in the local economy.

This news follows an announcement earlier in the year to open a new 390,000 ft2 distribution centre at Avonmouth in Bristol, serving stores in the Midlands, South-west England and South Wales.

M&S three main capital investment priorities remain supply chain, store rotation and renewal, and digital & 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, fresher 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.

Architect for the  scheme is Lichfields which has focussed the design o the facility  to  reflect the highest standards, with careful attention paid to scale, massing, the use of materials and landscape treatment. Planning documents noted: “The building is both efficient and elegant – balancing the operational demands of a world-class distribution centre with a strong visual identity that complements its surroundings”.

The plans envisage rooftop solar to deliver 100% of energy use covered by Building Regulations as well as providing 100% preparation for EV charging in car parks and 10% of spaces provided with chargers.

Letting agents for the RFI DIRFT III are Savills and JLL.

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