Prime Highlights
- Marks & Spencer (M&S) will invest £340 million ($457 million) to build a 1.3 million-square-foot robotic distribution centre in Daventry, central England, with operations set to begin in 2029.
- The project will create 2,000 construction jobs and an additional 1,000 permanent jobs once the site is operational.
Key Facts
- The investment is part of M&S’s long-term strategy to double the size of its food division, boosting capacity and cutting costs in the long run.
- The announcement follows an April cyberattack that severely disrupted M&S’s online operations.
- Industry data shows M&S achieved a 6.7% year-on-year rise in food sales over the 12 weeks to August 9, reflecting a rebound in customer demand.
Background
Marks & Spencer (M&S) will invest £340 million ($457 million) to build a large robotic distribution centre in central England, the British retailer said on Thursday. The move is part of the company’s long-term strategy to expand its food division, with the aim of doubling its size in the coming years.
The 1.3 million-square-foot automated plant will be located in Daventry and will start operations in 2029. According to M&S, the construction of the project will generate 2,000 jobs in addition to the 1,000 permanent jobs to be created once complete.
According to Alex Freudmann, who is the managing director of M&S Food, the move is aimed at increasing capacity, lowering costs in the long term, and enhancing the availability of products both in their stores and online platform. This investment will position the company to add capacity to support future growth; make the cost to serve more economical in the long run, and increase the availability of products.
The announcement comes as M&S continues to recover from a cyberattack in April that severely disrupted its online operations. According to industry data released this week, the retailer posted a 6.7% year-on-year increase in food sales over the 12 weeks to August 9, signaling a rebound in customer demand.
According to the market researcher NielsenIQ, M&S maintains a market share of 3.7% within the UK grocery market, a rather small market share when compared to the bigger and more established grocery chains in the market.
Through its investment in automation and large-scale infrastructural development, M&S will beable to create a long-term investment in the growth and success of its food business and, consequently, improve its efficiency within the UK market context.
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