What’s making Prologis’ RFI DIRFT site popular with retailers?
Faced with rising costs, labour shortages, rising demand for rapid delivery in urban centres and the increasing need to decarbonise, UK grocery retailers are rethinking how their supply chains are structured and where they’re based. As demand grows for more efficient and sustainable fulfilment, many of the biggest names in food retail are consolidating into new, future-ready logistics facilities designed to meet the challenges of a rapidly changing market.
One solution coming increasingly to the fore – and already adopted by a number of the UK’s grocery retailers – is the use of intermodal logistics. This integration of road and rail transport enables retailers to move large amounts of goods from central distribution hubs and entry points to near their final location in both a time-efficient and sustainable way. Plus, as a freight train can carry as much as 110 lorries, there is a clear opportunity to reduce carbon footprint and help to cut down both traffic and gridlock on the nation’s roads.
At the heart of this evolution – and attracting the attention of some of the UK’s leading grocery retailers – is Prologis, an international specialist in logistics property development. Its major UK investment is Daventry International Rail Freight Terminal (DIRFT), an intermodal rail-road complex sitting at the heart of the country. This prime location, and the variety of facilities offered at the site, have encouraged keen interest and investment from (among others) Tesco, Sainsbury’s and, most recently, Marks & Spencer.
The business’ central location at Daventry offers direct access to the West Coast main rail network, the UK’s primary freight route, with three rail freight terminals at the site and a high on-time performance lending supply chain resilience to retailer networks. Proximity to the UK’s highway network (M1 and the M6/A14 interchange) means that HGV lorries operating from the site can reach 47 million customers in under 4.5 hours. This offers retailers supply chain resilience with more time-efficient delivery and contributes towards its customers’ enhanced sustainability goals.
Tesco has two facilities at the site – a cold store and rail served terminal – and operates 10 rail services from DIRFT every day. Since 2023, the retailer has been using Maritime Transport to plan and execute all rail operations at its central distribution hubs within DIRFT, citing its commitment to “efficient low-carbon logistics”. At the time, Nick Potter, transport director for Tesco plc, noted: “Rail freight is one of the many ways we’re reducing our emissions, and the network will play an important role in achieving net zero across our operations by 2035.”
Sainsbury’s, which operates its national distribution centre at DIRFT, also confirms that its central location ensures continuity of supply for the retailer’s customers and allows it to be “highly responsive to changing demand”, as well as helping it reduce carbon emissions throughout its operation and supply chain.
Meanwhile, Marks & Spencer recently revealed its decision to relocate to DIRFT, investing in a new £340m automated food distribution centre, as part of plans to double the size of its food business. As reported by The Grocer, the centre, due to open in 2029, will span 1.3m sq ft and represents M&S’ biggest supply chain investment in its history.
While the location of the DIRFT site and its intermodal capacity are key, a focus on other challenges faced by grocery retailers is adding to its appeal. Not least among these are the facility’s flexibility, with building sizes ranging from 100,000 – 1.6m sq ft, and the ability to accommodate a high level of automation. In the case of Marks & Spencer, for example, the new development is set to combine chilled storage, advanced automation fulfilment supplied by TGW Logistics, as well as returns and recycling operations.
Energy and sustainability concerns are addressed, with buildings designed to achieve net-zero regulated energy use and to target BREEAM Outstanding – the highest level of sustainable construction design. Prologis has committed to achieving net-zero greenhouse gas emissions across its value chain by 2040 and to ensuring all of its current warehouse and office spaces are equipped with energy-saving LED lighting by the end of this year.
More than 10,000 people currently work across the DIRFT site in a growing range of logistics, operations and technical roles – and, in turn, Prologis is committed to making the location enticing for its clients’ current and prospective employees. The Hub at DIRFT is a training facility which provides on-site training and proactive assistance for employers located at the site, helping them to upskill and build a future logistics workforce.
To enhance employees’ physical and mental health and wellbeing, Prologis has introduced a multi-purpose sports facility, along with a nature reserve and community parks and trails within the DIRFT complex.
It appears likely that the Prologis RFI DIRFT site will prove a key building block in future strategies for UK grocery retailers. As Prologis’ Weston notes: “E-commerce will continue to be a key driver of demand – but the nature of that demand is changing. In a mature market like the UK, customers expect faster delivery, better tracking, and with sustainability built in. It’s shaping how we plan, build, and deliver logistics space.”