M&S makes huge purchase to double online sales – 600 jobs created | UK | News
Marks & Spencer has agreed to buy a warehouse from ASOS in a move that will see the retail giant create 600 jobs and support plans to double online sales. M&S It said the 437,000 sq ft facility in Lichfield, Staffordshire, would be one of its largest distribution centers when it opens in 2027.
Warehouse shelved ASOS In 2023, it underwent an overhaul to reduce its inventory and costs to increase profitability. It employed several hundred workers at the time, but the online retailer said when it announced the move that the workers were not directly employed by the group.
M&S said the site will increase capacity and allow it to process orders quickly, helping the group achieve its long-term goal of doubling the size of its online fashion, home and beauty business.
The chain said in a statement: “The new site will support M&S’s strategy to deliver fashion faster than ever before, allowing customers to order in a wider choice of sizes and styles later in the day.”
John Lyttle, Managing Director of Fashion, Home and Beauty, said: “Our aim is to double online sales as we transform M&S fashion, home and beauty.
“To achieve this and serve our customers faster, more efficiently and with better availability, our 24/7 distribution network needs more capacity.”
He said the move would help with conversion plans at a lower cost than building a site from scratch.
ASOS said it would make at least £66 million in revenue from the warehouse sale and save around £6 million each year on costs such as rent.
This will lead to a one-off profit increase of around £85 million once the deal is completed, which is expected to happen at the end of August.
The firm said its remaining warehouses in Barnsley, South Yorkshire and Berlin “will provide sufficient capacity to support future growth”.
ASOS Chief Executive Jose Antonio Ramos said: “The disposal of our Lichfield fulfillment center represents the next step in strengthening Asos’ balance sheet and improving our capital efficiency.
“This transaction enables us to capture value from one of our non-core assets while reducing our ongoing cost base, consistent with the actions we have taken over the past three years to simplify the business and increase financial resilience.”
