Innovation of the Week: Home Bargains opens 'cutting-edge' automated distribution centre

What is it? 

Home Bargains has opened what it describes as a cutting-edge automated distribution centre in St Helens, representing a £400m investment by parent company TJ Morris. The discount retailer claims the facility sets new standards in retail logistics and positions itself among the most technologically advanced centres in the UK and Europe.

The new centre, called Omega, spans approximately 1 million sq ft and is designed to operate continuously, supporting 300 Home Bargains stores. It employs 1,000 staff, positioned near junction eight of the M62. 

The automation system has been developed in partnership with Witron, described by Home Bargains as a collaboration between two family-run businesses. According to the retailer, up to 80% of stock picking is now automated, with the first store deliveries dispatched last month.

TJ Morris has already started work on a second distribution centre in Doncaster to replicate the St Helens site’s automated systems. The Doncaster facility is scheduled to open in 2028 and is intended to provide capacity for a further 300-plus stores.

Why does it matter?

The investment is a significant commitment to automation within the discount retail sector, which has, until now, typically relied on manual operations. 

It is also a large-scale investment, spending £400m for a single distribution centre. This is a substantial outlay at a time when many retailers are facing margin pressures and economic uncertainty.

Strategic implications

The facility’s capacity to support 300 stores, combined with plans for a similar facility in Doncaster, suggests TJ Morris has ambitious expansion plans. This is particularly compelling when considered in the context of its competitors within the value market – many of which are struggling to find growth, and a few are facing serious financial trouble. 

Winning strategies

• Focus on innovation
• Focus on operational efficiency