M&S is understood to be looking for a major new warehouse hub in the Midlands to meet fast-growing demand for its fashion and homewares online.

M&S has been looking at around 1million square feet of space, with two sites near Northamptonshire a particular focus, property sources have told The Telegraph newspaper. However, the sources said M&S had yet to make a decision on any deal.

The activity is being seen as another indication how well the FTSE100-reinstated business has been doing in recent years. Apart from the restructuring and upgrading of its store stock with a greatly-increased fashion offer, M&S said it is keen to add to its current 9.4 million regular online customers which account for 33% of total sales.

The retailer has said it wants half of its fashion and homeware sales to be taking place online. 

M&S CEO Stuart Machin told the newspaper earlier this year: “We think there’s a bigger growth opportunity online than we’ve got at the moment. “We want customers to shop in a more digtital way, we want the app to be easier. We want it to be more interactive.” 

The company has begun making changes to its website to make it easier for customers to navigate, including making the pages load faster and stripping back the number of links.

M&S’s attempt to drive up online sales comes after improving its supply chain, including simplifying its distribution network. The company said it had streamlined its operations from 16 warehouses and distribution centres for clothing and home in 2018 to 10 sites in 2023, saving it more than £45 million, although further improvements are expected.