Marks & Spencer this week became the first company to sign up for a distribution centre at the new DP World London Gateway deep-sea port on the Thames estuary.

Marks & Spencer this week became the first company to sign up for a distribution centre at the new DP World London Gateway deep-sea port on the Thames estuary.

PM David Cameron was on hand to mark the occasion but for M&S the real significance was a step forward in an ongoing supply chain overhaul. Improvements there are central to boss Marc Bolland’s strategy of reforging the retailer as an international ecommerce business.

When fully operational the DC will cut the time taken to get general merchandise goods from shore to store from two weeks to three days, bringing obvious benefits. It will be able to serve more than 50% of M&S’s UK store network and supply western Europe.

While analysts may be divided on M&S’s prospects, few would dispute the increasing importance of supply chain excellence to retail success and therefore to shareholder value. Such strengths are only likely to take on greater importance as omnichannel retail grows.

Strong supply chain capabilities - or the lack of them - are frequently marking out retail’s winners and losers.

Supergroup came a cropper a while back when its systems proved inadequate to the task, while the fulfilment and returns prowess of Asos and Next - both of which have rewarded investors handsomely - has provided clear competitive advantage.

Construction of M&S’s London Gateway centre hasn’t even started yet so there’s a bit of jam tomorrow about it. But at least the ingredients are on the table.

Shorts head for the door

Ocado’s shares continued their upward momentum as short-sellers closed positions to stem losses. Their flight from Ocado follows an exit from Home Retail, where signs of improvement at Argos prompted a fall in shares out on loan.

It looks as if retail will no longer be such a happy hunting ground for the shorts.