Cargo Business Newswire

Wednesday, May 28, 2014

Marks & Spencer pulls out of distribution hub deal at London Gateway

U.K. retail giant Marks & Spencer announced it is pulling out of a deal to open a 900,000- square-foot distribution facility at the London Gateway port.

In June 2013, the retailer made an agreement to become the port's first major tenant, declaring its intention to invest $311 million in the 1,500-acre site.

The project was supposed to begin earlier this year, after the completion of the London Gateway construction last year. The M&S distribution hub was to eventually employ 700 people.

But in a statement published beside its annual results last week, Marks & Spencer said: "Following a thorough review of our plans, we have taken a decision not to proceed with the site at London Gateway and have developed an alternative plan."

M&S said that it now plans to operate from two national distribution centers in the Midlands and the North, supported by four regional distribution centers. The statement said the plan would save the company $219 million.

For more of the Construction Week story: constructionweekonline.com