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M&S eyes doubling of fashion business with £67.5m DC facility acquisition

Marks & Spencer (M&S) has agreed a conditional deal to acquire a fully automated former Asos distribution centre in Lichfield for £67.5m as part of its strategy to double online fashion sales and expand logistics capacity.

Isatou Ndure May 11 2026

M&S said the 437,000 square foot logistics hub will become operational within its network in 2027 and employ 600 people.

The retailer said the fitted-out site will increase capacity and process orders more quickly as part of its long-term ambition to double the size of its online fashion business.

According to M&S, the site will support faster delivery of fashion products, allowing customers to place orders later in the day while improving the availability of sizes and styles.

Supply chain transformation remains a strategic priority for the company as it reshapes the business for growth, and reducing the time taken for products to move from suppliers to distribution centres and then into stores or directly to customers is a key focus area.

M&S 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 24/7 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.”

The retailer also stated there is an opportunity to improve the customer proposition, drive online growth and create efficiencies that could improve profit margins over the long term.

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