Marks & Spencer has agreed to acquire a major warehouse site from Asos, a move expected to create around 600 jobs and accelerate the retailer’s push to double online sales.
The 437,000 square foot distribution centre in Lichfield, Staffordshire, will become one of M&S’s largest logistics hubs when it opens in 2027, strengthening the company’s growing fashion, home and beauty operation.
The site was mothballed by Asos in 2023 as part of a sweeping restructuring programme aimed at cutting costs, reducing excess stock and improving profitability after years of financial pressure in the online retail sector.
M&S said the acquisition would significantly expand its distribution capacity, enabling customers to place orders later in the day while improving product availability and delivery speeds.
John Lyttle, managing director of M&S fashion, home and beauty, said the new facility would support the retailer’s ambition to “deliver more M&S fashion faster than ever before”.
“As we transform M&S fashion, home and beauty, our ambition is to double online sales,” he said.
“To achieve this and serve our customers faster, more efficiently and with better availability, our 24/7 distribution network needs more capacity.”
The retailer added that purchasing an existing site represented a faster and more cost-effective route than constructing a new warehouse from scratch.
For Asos, the sale marks another step in its ongoing turnaround strategy under chief executive José Antonio Ramos.
The online fashion group said the transaction would generate at least £66 million in proceeds while reducing annual operating costs by approximately £6 million through savings in rent and maintenance.
Asos expects the disposal to deliver a one-off profit boost of roughly £85 million once completed, with the deal anticipated to close by the end of August.
Investors responded positively to the announcement, with Asos shares rising sharply in Monday trading.
The company insisted its remaining fulfilment centres in Barnsley and Berlin would provide sufficient capacity to support future growth plans.
Mr Ramos described the disposal as part of wider efforts to strengthen the company’s balance sheet and improve financial resilience after a difficult period for the fast-fashion retailer.
The deal also underlines the growing divergence between traditional retailers and digital-first fashion groups, with M&S continuing to expand aggressively online while Asos focuses on consolidation and cost control following years of rapid expansion.
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