Marks & Spencer is evaluating a significant investment in a new warehouse in the Midlands to support online sales growth.
- The proposed warehouse, potentially located in Northamptonshire, is expected to cover one million square feet.
- Currently, M&S has 9.4 million online customers but most sales are still made in-store.
- Modernisation efforts at M&S include supply chain streamlining and increased automation.
- Officials stress that the warehouse consideration reflects ongoing strategic assessments.
Marks & Spencer is exploring the possibility of establishing a substantial new warehouse facility in the Midlands region. This move is driven by the retailer’s ambition to bolster its online fashion and homeware sales. Property insiders have revealed that M&S is examining options for a site in Northamptonshire, expected to span one million square feet, though a decision is yet to be made.
Despite having a solid customer base of approximately 9.4 million individuals who regularly shop online, M&S continues to generate a majority of its sales through physical retail outlets. The retailer is keen to shift this balance, aiming for 50% of its fashion and homeware revenue to derive from online transactions. Recent updates to its online platform, enhancing user experience with personalised interfaces, faster browsing speeds, and streamlined navigation, support this ambition.
At its latest capital markets presentation, M&S highlighted its success in refining its supply chain operations. The company has reduced its number of warehouses and distribution centres from 16 in 2018 to 10 by 2023, achieving cost savings of £45 million. These efforts underscore the retailer’s commitment to modernisation, a commitment further evidenced by the automation upgrades at its Bradford facility.
According to a spokesperson for M&S, the exploration of new warehouse sites is part of a broader strategy focused on supply chain modernisation, which is deemed pivotal for sustainable growth. “Modernising our supply chain is a key pillar of our strategy to reshape M&S for growth, so we always keep an eye on what’s in the market, but this is nothing more than that,” the spokesperson commented.
Marks & Spencer’s consideration of a new warehouse underscores its strategic focus on enhancing online sales capabilities.
