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• ASOS will sell its Lichfield fulfilment centre to Marks & Spencer for GBP 66 million, or nearly USD 90 million.
• The deal is expected to generate a one-time pre-tax profit of around GBP 85 million for ASOS.
• ASOS said the transaction will also help reduce annual cash operating costs by nearly GBP 6 million.
• The company is restructuring operations to cut excess capacity and simplify its business amid weak consumer spending and inflationary pressure.
• ASOS expects the transaction to be completed in the second half of fiscal year 2026, while its Atlanta facility will remain its only non-core asset.
British fashion retailer ASOS said in the past week that it will sell its Lichfield fulfilment centre to Marks & Spencer for GBP 66 million, or nearly USD 90 million, as the company continues efforts to simplify its business operations and reduce non-core assets. Advertisement
The Lichfield facility is used for product storage and order processing. ASOS said the transaction is expected to generate a one-time pre-tax profit of around GBP 85 million and help the company save nearly GBP 6 million annually in cash-related operating costs.
The company has been restructuring its operations over the last few years as it deals with weak consumer demand, inflationary pressure, and changing shopping patterns across key markets. Retailers in the UK and Europe have also been facing pressure from higher logistics costs, cautious discretionary spending, and increased competition in the online fashion segment.
ASOS said the sale is intended to address excess fulfilment capacity within its network. The company added that its existing fulfilment centres in Barnsley in the UK and Berlin in Germany provide sufficient operational capacity to support future business growth and customer demand.
The retailer expects the disposal process to be completed during the second half of fiscal year 2026. Following the sale, ASOS said its Atlanta fulfilment centre in the United States will remain its only non-core asset.
The move comes as ASOS continues to focus on improving profitability and strengthening its balance sheet after a period of slowing sales growth and inventory-related challenges. Over the past two years, the company has taken several steps including reducing stock levels, cutting operational costs, and reviewing warehouse capacity to improve efficiency across its business.
Marks & Spencer, meanwhile, has been expanding and modernising its logistics and fulfilment network as part of its broader retail and e-commerce growth strategy. The acquisition of the Lichfield site is expected to support its distribution operations and strengthen order processing capabilities in the UK market.
Source Reuters
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