British retailer Marks & Spencer has agreed a conditional deal to acquire a fully automated 437,000-square-foot fashion distribution centre in Lichfield, Staffordshire, as the company pushes ahead with plans to double its online fashion sales over the long term.
The facility, previously operated by ASOS, will become operational within the M&S logistics network in 2027 and is expected to employ around 600 people. The acquisition price has been set at £67.5 million.
According to M&S, the new logistics hub will strengthen capacity across its 24/7 distribution network, allowing faster order processing, broader product availability, and later customer ordering cut-off times. The retailer said the site will support quicker delivery to both stores and online shoppers while expanding the range of available sizes and styles.
John Lyttle, Managing Director for Fashion, Home and Beauty at M&S, said the investment forms a key part of the retailer’s ongoing transformation strategy. “As we transform M&S Fashion, Home and Beauty, our ambition is to double online sales,” Lyttle said. He added that the expanded logistics infrastructure would help the company serve customers “faster, more efficiently and with better availability.”
Lyttle also noted that the acquisition represented a more cost-effective solution than developing a new site from scratch, describing it as a “highly disciplined capital investment.”
The warehouse had been mothballed by ASOS in 2023 as part of the online fashion retailer’s restructuring and cost-reduction programme. ASOS said the disposal is expected to generate at least £66 million in proceeds and reduce annual costs by around £6 million, while also delivering an estimated one-off profit benefit of about £85 million upon completion of the transaction.
ASOS Chief Executive José Antonio Ramos described the sale as another step toward strengthening the company’s balance sheet and improving capital efficiency.
M&S said supply chain transformation remains a strategic priority as it looks to improve speed-to-market, drive online growth, and improve long-term profitability across its Fashion, Home and Beauty division.
