Tesco said the facility, which is being developed in partnership with logistics firm Witron, will strengthen its national distribution capacity and improve supply chain efficiency as customer demand and store numbers increase.
The site will be built at DP World’s London Gateway logistics hub in Essex, close to a major deep-sea port and intermodal rail terminal. Once operational, the new facility is expected to handle dry grocery distribution, using automated technology to streamline operations.
Tesco said the distribution centre would be energy efficient and is targeting BREEAM Outstanding certification — the highest rating under the UK’s leading environmental assessment method for buildings.
“Our distribution network is vital for ensuring customers receive products at the right place, time and condition,” said Andrew Woolfenden, Tesco UK Distribution & Fulfilment Director. He added that locating at London Gateway would allow the company to benefit from “the seaport and rail infrastructure” while supporting Tesco’s decarbonisation goals.
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said the investment was a “vote of confidence” in London Gateway’s role in boosting UK supply chain resilience.
The facility is expected to open in 2029. Further details, including the exact investment figure and size of the site, have not been disclosed
