Tesco has announced a landmark £1 billion investment in a new, state-of-the-art automated distribution centre at DP World London Gateway, signalling a major leap forward in British retail logistics. The 1.2 million square foot facility – the largest of its kind in Europe – is set to open in 2029 and is poised to become a model of innovation, sustainability, and operational excellence.
This bold move places Tesco firmly ahead of the pack in the UK, reaffirming its status as the undisputed leader in supermarket logistics and supply chain modernisation.
Strategic Location with Global Reach
Situated at the DP World London Gateway, a major deep-sea port and one of the UK’s most advanced logistics hubs, the site offers unparalleled connectivity to both domestic and international transport networks. Tesco’s choice of location reflects a shrewd, forward-looking strategy aimed at streamlining import routes and reducing road miles, further strengthening its national supply chain resilience.
Europe’s Largest, Most Technologically Advanced Facility
At over 1.2 million square feet, the site will be the largest automated grocery distribution centre in Europe. Partnering with logistics automation specialist Witron, Tesco will harness cutting-edge technologies to achieve maximum efficiency, accuracy, and speed across its operations. This facility is not just about scale—it’s about redefining how groceries move across the UK.
Sustainability at the Heart of the Design
The new facility is designed with environmental performance front and centre, targeting the prestigious BREEAM Outstanding certification. Features will include high-efficiency systems, renewable energy integration via solar panels, and circular waste processes that dramatically reduce environmental impact. Tesco is setting a new standard for green logistics in Britain.
Built for the Future of Retail
This investment reflects Tesco’s commitment to future-proofing its operations amid the rapid growth of e-commerce and the evolving expectations of modern consumers. The new centre will not only enhance stock availability and speed of delivery but also bolster capacity to serve its growing store network across the UK.
A Strong Signal of Leadership and Confidence
While others scale cautiously, Tesco is powering forward—asserting its role as a pioneer in British retail infrastructure. This development sends a clear message to the market, competitors, and investors alike: Tesco is not just keeping pace; it is shaping the future of retail logistics.
With this move, Tesco strengthens its operational foundation, sharpens its competitive edge, and reaffirms its leadership in sustainable, tech-driven distribution.