London – Marks & Spencer (M&S) has agreed a conditional deal to acquire a 437,000 square foot, fully automated fashion distribution centre in Lichfield, UK, as it steps up the transformation of its Fashion, Home and Beauty business.
The former ASOS facility is scheduled to enter the M&S supply chain in 2027 and will employ around 600 people.
The new hub is intended to add significant capacity to M&S’s 24/7 distribution network and to process online orders at higher speed and volume. For brands and sourcing partners supplying knitted apparel, the development is aimed at supporting later order cut-off times, broader size curves and a wider style assortment online.
According to M&S, the Lichfield site will operate as a fully automated distribution centre, building on the retailer’s existing investments in logistics and fulfilment technology. Although machine suppliers and system specifications have not been disclosed, the facility is expected to support high-throughput handling of folded knitwear, hosiery and other fashion categories through integrated storage, picking and packing systems.
The expansion is a key component of M&S’s long-term ambition to double the size of its online fashion business. For knitting mills, hosiery manufacturers and private-label partners, increased throughput and shorter lead times are likely to create opportunities for more frequent programme updates and flexible replenishment models.
M&S Managing Director for Fashion, Home and Beauty, John Lyttle, underlined the role of logistics in the company’s strategy. “As we transform M&S Fashion, Home and Beauty, our ambition is to double online sales,” he said, noting that additional capacity is required to serve customers “faster, more efficiently and with better availability”.
The retailer has stated that its supply chain transformation is a strategic priority as it targets growth across stores and online. Reducing the time it takes product to move from suppliers into distribution centres and then into stores or direct to customers is a central objective, with the new hub expected to support efficiency gains and improved margins over the longer term.
M&S will acquire the fitted-out site from ASOS for a purchase price of £67.5 million, describing the deal as a more disciplined use of capital compared with commissioning a new build.
From an operational perspective, the Lichfield hub is expected to support a broader online offer across categories including knitwear, socks, legwear and seamless garments, in line with the retailer’s focus on “stylish Fashion, Home and Beauty products”. Increased availability of sizes and styles online could also encourage M&S and its partners to test more specialised knitted constructions and fibre blends, with distribution capacity less of a constraint.
The site will form part of M&S’s round-the-clock UK network, complementing existing facilities that serve both its store estate and e-commerce channels. Integration of the new hub is expected to be phased, with full operational details for suppliers and logistics partners to follow closer to the 2027 go-live date.
