UK-based grocery chain Tesco is investing in a new distribution centre at DP World London Gateway to maintain a future-ready distribution network.
The multi-million-pound facility, expected to open in 2029, is part of Tesco’s strategy to support its expanding store network and meet customer demands efficiently.
Go deeper with GlobalData
DP World Group chairman and CEO Sultan Ahmed bin Sulayem stated: “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 distribution centre will feature modern, energy-efficient systems and latest technologies.
Tesco UK distribution and fulfilment director Andrew Woolfenden stated: “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.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe centre is expected to achieve Building Research Establishment Environmental Assessment Method (BREEAM) Outstanding certification, aligning with Tesco’s commitment to sustainable building practices.
Tesco is partnering Witron, a logistics company, to enhance its network capacity at the new site.
Witron CEO Helmut Prieschenk stated: 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.”
In June 2025, the retailer reported that UK & Ireland like-for-like sales increased 4.7% in the first quarter of 2025/26. It also recorded a 28% rise in market share in the UK, with an increase of 44 basis points year-on-year.
