Marks & Spencer To Create 3,000 Jobs With £340m Automated Warehouse

Marks & Spencer has announced plans to build a vast automated warehouse in the Midlands, creating 3,000 jobs as part of its strategy to double the size of its food business.

Concept image courtesy of M&S

The retailer confirmed it would invest £340 million in a 1.3 million sq ft food distribution facility in Northamptonshire. The site is expected to generate 2,000 jobs during construction and a further 1,000 permanent roles when it opens in 2029.

Alex Freudmann, Managing Director of M&S’s food business, announced in a LinkedIn post that the facility would “improve product availability” and lower costs in the long term.

He added: “This is not just a building project, it’s:

• Creating a supply chain that’s ready for the future, with sustainability at its core

• Using proven next-generation automation to make our operations smarter and more efficient

• Enabling growth in our Food business, so customers find the right products in the right place at the right time

• Creating thousands of jobs during construction and 1,000 permanent roles once operational

Opening in 2029, the site will span 1.3 million square feet and is designed to achieve a BREEAM Outstanding rating – placing it among the most sustainable warehouses anywhere in the world.

"It’s a landmark moment for M&S, and one that reflects the ambition that Stuart Machin laid down for us - to double the size of our Food busines,” explained Freudmann.

The investment is the largest in the company’s history and forms part of a wider move to increase automation across its supply chain. Products moving through the site will be handled by automated cranes, with small robots retrieving items from storage for delivery to stores, primarily across the Midlands and northern Home Counties.

M&S said the initiative will support chief executive Stuart Machin’s ambition to double the size of the food business. Last year, Machin stated he wanted the retailer to become a “go-to” store for weekly grocery shopping. To support this, the company is on track to open 12 new food halls by the end of 2025 as part of a broader expansion of its estate.

The number of food halls is set to rise from 324 to 420 over the next four years, with average store sizes increasing to 14,000 sq ft from 8,000 sq ft as of last year.

“We’re transforming M&S into a destination for the weekly shop and modernising our supply chain is central to that ambition,” Freudmann continued. “By using the latest, proven automation, we are future-proofing both our business and UK retail logistics.”

Food sales rose 8.7 per cent to £9 billion in the last financial year, although the figures did not include the impact of April’s cyber-attack. That incident caused sales to fall sharply, forcing M&S to pause deliveries of some items to online partner Ocado. The attack is expected to reduce profits this year by more than a third, equating to about £300 million.

Sales have since begun to recover, with NielsenIQ data showing a 6.7 per cent year-on-year increase in food sales in the 12 weeks to 9 August. Shares in M&S have nevertheless declined by more than 8 per cent so far this year.

The new distribution centre will be located at Daventry’s international rail freight terminal, around four miles east of Rugby, with direct connections to the west coast main line. The development is being delivered by real estate group Prologis, with logistics company TGW appointed as the automation partner.