M&S acquires Lichfield distribution centre to boost online fashion growth

British retailer Marks & Spencer (M&S) has announced a conditional agreement to acquire a 437,000 square foot fully automated fashion distribution centre located in Lichfield. The facility, previously operated by British online fashion retailer Asos, is scheduled to become operational within the M&S network in 2027.

The acquisition is expected to create 600 jobs and serves as a primary driver for the strategic acceleration of the retailer’s fashion, home, and beauty divisions. By increasing logistical capacity, the hub will facilitate faster order processing to support the long-term objective of doubling the size of the company’s online fashion business.

Strategic investment in supply chain transformation

M&S managing director for fashion, home and beauty, John Lyttle, stated that the acquisition is a critical component of the digital growth strategy. “As we transform M&S fashion, home and beauty, our ambition is to double online sales,” Lyttle said.

Lyttle noted that the 24/7 distribution network requires additional capacity to serve customers more efficiently. The managing director emphasised that the acquisition represents a disciplined use of capital, providing necessary infrastructure at a significantly lower cost than a new build project.

Supply chain transformation remains a strategic priority for M&S as it seeks to shorten lead times from suppliers to distribution centres and ultimately to the end consumer. The retailer views the optimisation of these processes as a key lever for driving online growth and improving long-term profit margins.

Currently, M&S operates a diverse portfolio including food and stylish fashion, home, and beauty products. These are distributed through its UK brick and mortar stores, international franchise partners, and its e-commerce platform.