Asos today said that it was to open a new ecommerce fulfilment centre in the United States.
Operations from the centre, in Union City, outside Atlanta, Georgia, will start in autumn 2018, after a $40m fit out is complete.
The fast fashion retailer says the new centre will “significantly” improve its customer service in the US, enabling it to offer more cost effective, faster and flexible delivery options. The centre will initially be able to handle up to 10m items, and there will also be room to expand. It is part of a growth strategy that targets expansion in key markets around the world.
Nick Beighton, chief executive of Asos [IRDX RASO], a Leading retailer in IRUK Top500 research, said: “This agreement is a major step forward for ASOS in the US and demonstrates the opportunity we believe lies ahead in this key market. Our US business delivered 39% constant currency growth in the first six months of the current financial year following sales of £179m in the year ended August 2016. Our US fulfilment centre will enable us to significantly develop our proposition for our 20-something US customers supporting our continued growth and future ambitions.”
Asos aims to become the number one fashion retailer for twenty-somethings around the world. Operations and logistics are key to that strategy. In the last year it has opened a second European distribution centre, and it said in full-year results published in April that while some 25% of US orders were delivered from the US the remainder were sent from the UK. It was therefore looking for a US fulfilment centre – now identified in today’s announcement. Its approach to logistics is focused on improving the speed and efficiency of delivery, collection and returns.
The retailer’s other strategic priorities, as outlined in its full-year results, include investment in and development of mobile, social, customer engagement and the technology that supports those functions.
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