Marks & Spencer will open a new 495,000ft2 clothing and home logistics centre in 2019, as part of its five-year transformation plan.
The retailer will open the centre, a former Tesco site, in Welham Green in Hertfordshire early next year, creating 500 new jobs.
M&S said the move is the latest step in an overall strategy to adopt a “single-tier” clothing and home distribution network, where products from suppliers go directly to warehouses and then straight to stores, which means the retailer only moves products once.
The clothing and home division also covers lingerie, swimwear and nightwear.
As part the logistics shake-up, M&S will cease operations at its Neasden distribution centre in London.
Operations at this centre, operated by third-party logistics specialist XPO Logistics with transport operations provided by DHL, will transfer to other sites in the M&S network, the retailer said.
Gordon Mowat, director of Clothing & Home Supply Chain & Logistics, said: “M&S is changing and we are transforming our stores and supply chain to better serve our customers.
“The new site in Welham will deliver better service and availability for our customers and enable us to become a faster, more agile, lower cost retailer. The location has fantastic transport links and we’re looking forward to building a great operation in Hertfordshire.
“The decision to move operations from Neasden to other sites within our network is not one we have taken lightly, however it’s an important part of our transformation.”