Marks & Spencer has invested £67.5m in a highly automated logistics hub in a move designed to underpin long-term digital growth.
The retailer has agreed a conditional deal to acquire a 437,000 sq ft distribution centre in Lichfield, Staffordshire – a former ASOS site – which will become operational in 2027 and employ around 600 people. The facility will form part of M&S’ expanding 24/7 logistics network, significantly increasing capacity and speed as the UK retailer works towards its goal of doubling online fashion sales.
Supply transformation as a growth driver
Supply chain transformation is central to that ambition; by increasing automation and improving fulfilment efficiency, M&S aims to deliver a broader product range with stronger availability, while enabling later order cut-off times and faster delivery to both stores and customers.
John Lyttle, managing director for Fashion, Home and Beauty, highlighted that this is a strategic investment which further the company’s digital ambitions while maintaining the financial discipline needed to operate successfully in the current economic climate – hence the decision to buy an existing facility rather than building one from scratch. “We’ve always said that we’ll deliver our transformation with highly disciplined capital investment, always mindful of spending shareholder money wisely,” he said. “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.”
Competing at scale
More broadly, M&S is focused on shortening the journey from supplier to customer. By streamlining how products move through its supply chain, the retailer sees an opportunity not only to boost online sales, but also to improve margins over time.
As competition in online fashion intensifies, M&S’ investment signals a clear intent: to build the operational backbone needed to compete at scale in a fast-moving digital market.
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