M&S acquires new fashion hub as it steps up ambition to double online sales

M&S has announced a conditional deal to acquire a new 437,000 square foot fully automated fashion distribution centre in Lichfield, as it accelerates transformation of its Fashion, Home and Beauty business. The former Asos site will become operational as part of the M&S network in 2027. It will employ 600 people.

The new logistics hub will add capacity and process orders quickly, helping to realise M&S’ long term ambition to double the size of its online fashion business. The new site will support the strategy to deliver more of its fashion faster than ever before, enabling customers to order later in the day and with more sizes and styles available.

Managing director for Fashion, Home and Beauty, John Lyttle, 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 hours a day, seven days a week distribution network needs more capacity.

‘We have always said that we will 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.’

Supply chain transformation is a strategic priority as the brand reshapes for growth; shortening the time it takes for product to move from supplier to distribution centre and then into stores or customers is a key focus. There is much opportunity to create a better proposition for customers, drive online growth and make efficiencies to improve profit margin in the long term.