The British department store Marks and Spencer Group is buying a distribution center from Asos. The deal is worth around 77.5 million euros. With this acquisition, Marks and Spencer will be able to achieve faster online growth.
Online fashion platform Asos is a well-known brand, which used to be in the top 10 of the biggest online stores in the United Kingdom for a long time. However, the company has been dealing with lower demand and lower financial results. It has restructured its operations, like shrinking its warehouse capacity. Now it has decided to sell its warehouse.
40,600 square meters
Marks and Spencer has been planning to double its non-food online sales in the United Kingdom. The acquisition of this distribution center can be an outcome for that. It is around 40,600 square meters (437,000 square feet) and is fully automated. This could improve the company’s product range, availability and customer service.
Reducing Asos’ net debt with sale
It is expected that the new center will be fully integrated into Marks and Spencer’s operations in 2027. According to the company, it will create around 600 new jobs. The sale was worth around 77.5 million euros (67.5 million British pounds).
‘The integration of the new warehouse into Marks and Spencer’s logistics network will create around 600 jobs’
With a net cash balance of around 200 million British pounds, the investment should not be too difficult for Marks and Spencer. For Asos, the sale will reduce the company’s net debt. Since announcing the sale, Asos’ price on the stock exchange has already risen.
