UK retailer M&S has agreed a conditional deal valued at £67.5 million (€79.9 million) to acquire a fully automated fashion distribution centre in Lichfield, formerly used by online fashion retailer ASOS, according to reporting in Parcel and Postal Technology International.

The 40,600-square-metre logistics hub will employ 600 people and add capacity to process orders quickly, helping to realise M&S's ambition to double the size of its online fashion business. The site will enable deliveries to be completed more quickly, with customers able to order later in the day and with more sizes and styles available.

Managing Director for Fashion, Home and Beauty John Lyttle stated: "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."

Lyttle added: "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 with a new-build option."

M&S stated that supply chain transformation is a strategic priority, focusing on reducing the time to move a product from supplier to distribution centre to stores or customers to boost growth.

The acquisition provides M&S with established automated infrastructure supporting e-commerce fulfilment operations without requiring construction lead times associated with new-build facilities. Lichfield's location in the Midlands provides strategic access to UK transport networks serving national distribution requirements.

Fashion e-commerce requires logistics capabilities supporting rapid order processing, accurate inventory management and flexible fulfilment options including next-day delivery and click-and-collect services.

Read complete details of M&S's £67.5 million acquisition of the Lichfield automated fashion distribution centre.