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Marks and Spencer has announced it has agreed to acquire a former ASOS distribution centre in Lichfield for £67.5m, as it aims to accelerate its online growth.
The 437,000 sq ft fully automated fashion distribution centre is expected to become operational under M&S in 2027, and will employ 600 people as part of the retailer’s 24/7 network.
According to the retailer, this acquisition is intended to double the size of its online fashion business as increased capacity will improve product availability and speed of delivery for customers.
Supply chain transformation remains a priority for the business as it attempts to shorten lead times between suppliers and consumers to improve profit margins.
The retailer confirmed the fitted-out hub was purchased from Asos, following a strategy to utilise disciplined capital investment rather than pursuing more expensive new-build options.
John Lyttle, managing director for fashion, home and beauty at M&S, said: “As we transform M&S Fashion, Home and Beauty, our ambition is to double online sales. To achieve this and serve our customers faster, more efficiently and with better availability, our 24/7 distribution network needs more capacity.
“We’ve always said that we’ll deliver our transformation with highly disciplined capital investment, always mindful of spending shareholder money wisely. This acquisition does just that, delivering tangible business benefits that move our transformation forward, at a much lower cost compared to a new build option.”
