Tesco greenlights multi-million pound investment in new DC to meet demands of growing store network

Tesco is investing in a new distribution centre at DP World London Gateway, which it expects to open in 2029. 

It will be working with logistics partner Witron on this.

Andrew Woolfenden, Tesco UK Distribution & Fulfilment Director, says:  “Our distribution network is vital for ensuring customers receive products at the right place, time and condition.”

“As demand grows across our store network, we're excited to partner with Witron and DP World to develop a distribution centre that leverages the latest technology, enhancing our supply chain and supporting our decarbonisation goals. By locating at London Gateway, we can also take full advantage of the seaport and rail infrastructure." 

Helmut Prieschenk, CEO at Witron, says: “It’s an honour and pleasure for us to be part of this outstanding logistics initiative, which represents the introduction of more intelligent logistics production.”

“With the latest technology and machinery, once fully operational, this represents a large scale project for dry grocery distribution. In terms of end-to-end integration this is a lighthouse project for Witron - which ensures premium store service, an ergonomic, safe and sustainable environment and benefits the whole value chain.”

Sultan Ahmed bin Sulayem, DP World Group Chairman and Chief Executive Officer, comments: “DP World London Gateway is helping to make Britain’s trade flow by sea, road and rail, connecting businesses across the UK with global markets and boosting the resilience of national supply chains.”

“The significant investment announced today by Tesco, one of the world’s leading retailers, is a proud moment for DP World and a vote of confidence in the growing role London Gateway plays in the UK economy.”

MFCs

Tesco has entered into an agreement with Attabotics that will see the UK grocery giant tapping the firm’s micro-fulfillment systems to fulfill online orders.

It’s a move that is likely in line with plans to grow Tesco’s Whoosh and Marketplace offerings.

According to a report by Brittain Ladd, a supply chain consultant and former Amazon executive, citing multiple unnamed sources, it evaluated numerous micro-fulfillment solutions on the market including AutoStore and Fabric.

The retailer looked at the technology from Attabotics for nearly two years before entering into an agreement to purchase and install a system. It required the Canadian company to meet stringent requirements across a variety of areas including picking speed, uptime, ease of use, and safety.

Attabotics recently filed for bankruptcy. Tesco did not respond to our request for comment on the exact path forward given this news.

“Sources from Tesco stated to me that they are confident that the Attabotics system will work and meet their needs,” Ladd stated. “Tesco is planning on moving forward with installing the system when it arrives.”