M&S pulls out of London Gateway

Other ideas: M&S has pulled the plug on its London Gateway plans Other ideas: M&S has pulled the plug on its London Gateway plans
Industry Database

UK retailer Marks & Spencer has pulled out of plans to invest £200m in a national distribution centre at DP World's London Gateway.

Announcing the decision in its annual report, M&S said that, following a thorough review of its plans, “we have taken a decision not to proceed with the site at London Gateway and have developed an alternative plan”. The retailer, which reported a 4% fall in profits, said it would instead be operating from its two new NDCs, at Castle Donington and Bradford, supported by four existing regional distribution centres which would be converted into NDC use.

“This will use our capital investment more efficiently, with a planned £130m reduction in investment whilst largely retaining associated benefits.”

The decision is an obvious disappointment for the DP World team at London Gateway, where M&S’s plans extended beyond operating an import receiving centre and distribution centre to include export consolidation activities to serve stores in Europe.

However, it was not a complete surprise; while the company originally announced its plans for the 900,000ft² facility in June 2013, it was known in the market that contracts had yet to be signed, and rumours had been circulating for some months about the delay.

By Felicity Landon 

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