Marks and Spencers has acquired a major distribution warehouse in Lichfield, Staffordshire, as part of a wider strategy to transform its supply chain and double online sales of its fashion, home and beauty business.

The 437,000 site, which M&S has agreed to buy from fashion brand Asos for £67.5m, will open in 2027, employ 600 people and operate as part of  the retailer’s 24/7 network.

M&S said the increased capacity and automation at the site will improve range, availability and speed to store or direct to customer

The new logistics hub will process orders quickly, helping to realise the retailer’s long-term ambition to double the size of its online fashion business.

The company said the site will support the strategy to deliver more of M&S fashion faster than ever before, enabling customers to order later in the day and with more sizes and styles available.

John Lyttle, M&S managing director for fashion, home and beauty, 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’ supply chain transformation is a strategic priority for the business as it restructures for growth, with a key ambition to shorten the time it takes for product to move from supplier to distribution centre and then into stores or customers.