Marks & Spencer has struck a conditional deal to acquire a major automated fashion distribution centre from ASOS, which it says will allow the company to ramp up plans to double online sales.

The retailer is buying the 437,000 sq ft site in Lichfield, Staffordshire for £67.5m, with the former ASOS warehouse set to become part of its logistics network in 2027.

M&S said the fully fitted-out hub will create 600 jobs and support the ongoing transformation of its Fashion, Home and Beauty business.

The new site will add capacity to its 24/7 distribution network, allowing the retailer to process online orders more quickly and improve product availability across both stores and direct-to-customer channels.

M&S said the acquisition would help it offer more fashion products, sizes and styles online, while enabling customers to order later in the day.

The acquisition forms part of the retailer’s wider supply chain transformation, which it has identified as a key driver of long-term online growth.

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.”

M&S said improving the speed at which products move from suppliers to distribution centres and then into stores or customers’ homes remained a strategic priority.

It added that the new hub would help create a ‘stronger customer proposition, support online growth and drive long-term margin improvements through greater efficiency’.

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