M&S buying ASOS warehouse is a shortcut to faster online growth, says broker

Marks and Spencer Group PLC;s (LSE:MKS) £67.5 million purchase of a distribution centre from online specialist ASOS PLC (LSE:ASC) gives the FTSE 100 retailer a faster and cheaper route to expanding its online clothing business as it pushes to double UK non-food digital sales. Analysts at Shore Capital said the acquisition of the 437,000 sq ft site was a surprise but “welcome component” of M&S's long-term online strategy, giving the group additional logistics capacity at what they described as a reasonable price.