Marks & Spencer has unveiled a landmark £340 million investment in its food supply chain as it pushes forward with its strategy to "reshape for growth".

The multi-year investment will fund the creation of a fully automated National Distribution Centre (NDC) at Daventry International Rail Freight Terminal in Northamptonshire. Spanning 1.3 million square feet, the site is seen as a critical step in the retailer’s ambition to double the size of its food business.

Expected to open in 2029, the depot will use advanced automation technology to boost efficiency, improve product availability on shelves, and support the growing number of customers choosing M&S for their weekly shop. The project is also set to create 2,000 construction jobs and 1,000 permanent roles once operational.

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

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"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."

The development, being delivered in partnership with Prologis and automation partner TGW Logistics, will feature innovations including automated pallet cranes, a high-speed shuttle system for stock handling, and hands-free picking solutions to speed up store replenishment.

The site aims to achieve a BREEAM Outstanding rating, putting it in the top 1% of sustainable buildings worldwide. Features will include a rooftop solar array, rainwater harvesting, recycled building materials, EV charging points and energy-saving systems.

The Northamptonshire project follows the announcement of a new 390,000 sq ft distribution centre at Avonmouth in Bristol earlier this year, serving stores across the Midlands, South West and South Wales.

M&S said its three key areas of capital investment remain the supply chain, store rotation and renewal, and digital and technology. As part of this, the retailer is accelerating a programme to renew half of its store estate by 2027/28, including 12 new food halls on former Homebase sites.