In a bold move to strengthen its operational backbone and support a rapidly evolving retail landscape, Tesco has unveiled a multi-million-pound investment in a next-generation distribution centre at DP World London Gateway, set to open in 2029. The announcement underlines Tesco’s long-standing strategy of staying ahead of the curve—and its rivals—as it continues to evolve with the growing needs of British consumers.
This facility is more than just another logistics hub. It represents Tesco’s vision for a future-proof supply chain, combining cutting-edge automation, sustainability, and scale to support the supermarket giant’s growing store network. As grocery sales in the UK remain stable—despite a shifting retail environment—Tesco is betting on efficiency, resilience, and innovation to reinforce its market dominance.
A Strategic Expansion, Not Just Maintenance
Tesco’s planned centre will feature state-of-the-art technology and energy-efficient infrastructure, developed in partnership with renowned logistics firm Witron. Designed to achieve BREEAM Outstanding certification, the site demonstrates a clear commitment to sustainable building practices—not just operational efficiency.
“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,” said Andrew Woolfenden, Tesco UK Distribution & Fulfilment Director.
This new hub, strategically positioned to tap into road, rail, and sea routes, will enable faster, more reliable, and more sustainable product delivery to Tesco stores across the country. The investment isn’t just about logistics—it’s a signal that Tesco is still growing, still building, and still leading.
Still the Pace-Setter in British Grocery
Tesco has long set the standard in British retail. From pioneering loyalty schemes to investing early in online shopping, it has consistently led while others followed. Even as market conditions fluctuate and consumer habits evolve, Tesco continues to invest where it matters most: delivering better service and broader choice to millions of households.
The UK grocery sector, while facing inflationary pressures and digital transformation, remains resilient. British consumers continue to value reliable access to food and essentials, and Tesco’s ongoing success in both convenience and large-format retail formats is a testament to its adaptability.
A Vote of Confidence in British Infrastructure
For DP World, Tesco’s announcement is also a win. “The significant investment announced today by Tesco is a proud moment for DP World and a vote of confidence in the growing role London Gateway plays in the UK economy,” said Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO.
And for Witron, this collaboration is another high-profile entry in a growing portfolio of smart logistics projects. CEO Helmut Prieschenk described it as “a lighthouse project,” praising its intelligent design and emphasis on sustainability and safety.
Looking Ahead
As competitors face pressure to downsize or re-evaluate their strategies, Tesco is doing what it has always done best—planning ahead, investing smartly, and keeping its customers front of mind. This distribution centre is not only a critical node in Tesco’s infrastructure—it’s a symbol of its enduring leadership in UK grocery.
While others are trying to keep up, Tesco is still expanding, still innovating, and still moving forward.