Asos has asked its suppliers for a 2% trade discount on goods in order to beat rising inflation, according to Drapers.
The company is said to have written to its Asos Design and third-party branded supplier base to ask for the discount on the agreed retail price on invoices dated after 1 February.
In a letter seen by the publication, Asos chief commercial officer José Antonio Ramos asked for suppliers to share the burden of inflationary rises and to help it “put in place measures essential to maintaining competitive prices for our customers.”
Asos revealed earlier this year that sales and profits had been hit by various events. These included elevated freight costs, the use of air freight to get around supply chain constraints as well as other rising supply chain costs hitting the business.
It previously asked suppliers for a 3% discount in 2019, before the pandemic. At that time, it said it was to continue to “fuel joint growth” at the business, according to Drapers.