London, May 13, 2026, 18:07 BST
- M&S is pressing ahead with work on its 1.3 million square foot automated food distribution centre in Northamptonshire, scheduled for a 2029 launch.
- All this lands just ahead of full-year results set for May 20, and only 48 hours after M&S signed off on a £67.5 million purchase of a former ASOS fashion warehouse.
- Marks & Spencer shares ended up 0.78% once London’s session wrapped, according to Hargreaves Lansdown data.
Marks & Spencer Group has broken ground on a new £340 million automated food distribution centre in Northamptonshire—the retailer’s biggest supply-chain spend to date—as it aims to grab a larger share of the weekly grocery market.
This comes just ahead of M&S’s full-year results on May 20. Investors are eyeing whether gains in food and recent logistics outlays will balance out sluggish progress in fashion and online—a segment still feeling the effects of last year’s cyber incident.
M&S plans to open its massive national distribution centre—1.3 million sq ft—in 2029. The site will supply over 200 food stores, the company said, and is set to underpin more than 1,000 permanent roles. Automation is central: pallet cranes, fast-moving shuttles, and hands-free picking systems are all part of the project.
Kevin Bennett, chief executive at Gist—M&S Food’s logistics division—framed the project as a move to make M&S a “true destination for the weekly shop” and to sharpen availability, aiming to put the “right products in the right place at the right time.” Marks Spencer
This week’s food warehouse news comes on the heels of another logistics play. On May 11, M&S announced a conditional £67.5 million agreement to acquire a 437,000 sq ft former ASOS distribution site in Lichfield, Staffordshire, aiming to boost capacity for its fashion, home, and beauty lines. Reuters noted that ASOS stands to net £66 million and save £6 million in yearly cash costs from the sale.
John Lyttle, managing director of M&S Fashion, Home and Beauty, called the deal a way for the retailer to “serve our customers faster” and pointed out it comes “at a much lower cost compared to a new build option.” M&S plans to bring the Lichfield site into its network in 2027, aiming to hire 600 staff. Marks Spencer
The two warehouse shifts at M&S throw real money at their old pledge: improved stock, quicker deliveries, and lower handling costs. That’s a big deal in food retail, with shoppers chasing bargains and Tesco and Sainsbury’s still grabbing more share, per Worldpanel by Numerator numbers cited by Reuters. Ocado, the digital grocery venture M&S shares, held its spot as the fastest-growing grocer in the same set of data.
M&S ended the session with shares changing hands at 311.10 pence to sell and 311.50 pence to buy, a 0.78% gain that lifted its market cap to roughly £6.31 billion, according to Hargreaves Lansdown data.
Execution remains a question mark. The food site is not scheduled to launch until 2029, and automation timelines often run long. If shoppers opt for cheaper alternatives or more price cuts are needed due to inflation, payback could easily get pushed out. Back in November, M&S flagged that the cyber incident and associated recovery expenses had thrown first-half profit out of whack. Fashion, home, and beauty sales hadn’t fully bounced back either.
Stuart Andrew, MP for Daventry, called the Northamptonshire project a sign of “confidence in the local people and businesses.” James Hemstock, an executive at Prologis UK, pointed to the development as the product of teamwork on sustainability and long-term value. Marks Spencer
In the short run, the question is whether larger, more automated warehouses actually mean fuller shelves, less waste, and M&S shoppers sticking around for the whole basket—not just a handful of high-end picks. That’s what investors will be watching for next week.
