Marks and Spencer Strengthens Supply Chain Network Through Acquisition of Former ASOS Logistics Site

Marks and Spencer Strengthens Supply Chain Network Through Acquisition of Former ASOS Logistics Site

(IN BRIEF) Marks and Spencer has agreed to acquire a fully automated 437,000 square foot fashion distribution hub in Lichfield, Staffordshire, as part of its strategy to double online Fashion, Home and Beauty sales over the long term. The former ASOS logistics site is expected to become operational within the M&S network in 2027 and will employ around 600 people. The retailer said the investment will strengthen supply chain capacity, improve product availability, accelerate delivery speeds, and support more efficient online order fulfillment. M&S views supply chain transformation as a key growth driver as it modernizes operations and expands its digital retail capabilities.

(PRESS RELEASE) LONDON, 11-May-2026 — /EuropaWire/ — Marks & Spencer has announced plans to acquire a new fully automated fashion distribution hub in Lichfield, Staffordshire, as the retailer accelerates efforts to expand its online Fashion, Home and Beauty business and strengthen its long-term supply chain capabilities.

The new 437,000 square foot logistics facility, formerly operated by ASOS, is expected to become operational within the M&S distribution network in 2027 and will support approximately 600 jobs. The acquisition forms part of the retailer’s broader strategy to modernize operations, improve product availability, and significantly grow online sales over the coming years.

M&S said the new hub will play an important role in its ambition to double the size of its online fashion business by increasing processing capacity and enabling faster movement of products through its 24/7 logistics network. The facility’s advanced automation systems are expected to help improve order fulfilment speed, inventory management, and delivery efficiency for both stores and direct-to-customer shipments.

According to the company, the site will allow customers to place online orders later in the day while gaining access to a broader selection of sizes and styles with improved availability across the retailer’s fashion offering.

John Lyttle said expanding logistics capacity is essential to supporting the retailer’s ongoing transformation strategy and long-term online growth ambitions. He stated that the investment is intended to help M&S serve customers more efficiently while strengthening the company’s operational infrastructure.

Lyttle also emphasized that the acquisition aligns with the company’s disciplined capital investment approach, noting that purchasing and repurposing the existing automated facility represents a more cost-effective solution compared with developing a completely new logistics center from the ground up.

The conditional acquisition agreement values the fully fitted distribution hub at approximately £67.5 million.

Supply chain modernization has become a central component of M&S’ wider transformation plans as the retailer seeks to improve operational efficiency and strengthen profitability across its Fashion, Home and Beauty business. The company said reducing the time products spend moving from suppliers to warehouses and onward to stores or customers remains a key strategic priority.

The new Lichfield facility is expected to contribute to improved customer service levels while also helping M&S create efficiencies that support long-term margin improvement and online sales growth.

The investment reflects wider trends across the retail sector, where major retailers are increasingly investing in automation, advanced logistics infrastructure, and fulfillment technology to meet rising consumer expectations around delivery speed, inventory availability, and digital shopping experiences.

About M&S

At M&S our vision is to be the UK’s most trusted retailer, committed to doing the right thing for our customers, communities, and colleagues. We offer a wide range of delicious, great-quality M&S Food and stylish Fashion, Home and Beauty products across UK stores, international franchise partners and online at M&S.com. With quality at the heart of everything we do, we bring the magic of M&S to life through exceptional products, great value, outstanding service, and continuous innovation – delivering an inspiring shopping experience whenever and however customers choose to shop with us.

For further information, please contact:  
M&S Corporate Press Office:    +44 (0)20 8718 1919
corporate.press@marks-and-spencer.com
SOURCE: Marks and Spencer