M&S has announced a conditional deal to acquire a new 437,000 sq ft fully automated fashion distribution centre in Lichfield as it accelerates the transformation of its Fashion, Home and Beauty business.
The former ASOS site is expected to become operational as part of the M&S network in 2027 and will employ 600 people.
The logistics hub will add capacity and support faster order processing, helping M&S work towards its long-term ambition to double the size of its online fashion business. The site will support the retailer’s strategy to deliver more fashion products more quickly, with later order cut-off times and improved availability across sizes and styles.
“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.”
John Lyttle, Managing Director for Fashion, Home and Beauty, M&S
Supply chain transformation is a strategic priority as M&S reshapes for growth. Shortening the time it takes for products to move from supplier to distribution centre and then into stores or directly to customers is a key focus for the business.
The retailer said the new site will support its work to improve the customer proposition, drive online growth and create efficiencies to improve profit margin over the long term.
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