Asos to fulfil US orders from the UK shuttering Atlanta DC

InternetRetailing
Image © Asos

Asos plans to “mothball” its Atlanta distribution centre in the second half of this year, with US orders processed by its UK operations, as the etailer looks to lower costs.

Its automated UK fulfilment centre in Barnsley will be used for US customer orders, with a smaller, “more flexible” local US site also harnessed.

Furthermore, Asos will introduce a Partner Fulfils process in the States later this year.

“Asos remains excited about the opportunity in the US market and believes that its new operating model will better serve its US customer-base, while generating a better return on investment” the retailer said in a statement.

“Asos opened a local US office in 2024 and will continue to grow and build its local presence which it sees as crucial in building great customer experiences. The US remains a core market for Asos, which it believes can return to sustainable revenue growth and generate c.8% adj. EBITDA margins in the medium-term.”

In November 2024, Asos reported an operating loss of £33.2mn for the full-year, with a 16% drop in group revenue.

The retailer stressed its FY25 will be driven by a further increase in full-price sales, and as a result expects at least 300bps increase in gross margin to over 46% and adjusted EBITDA to increase by at least 60% to £130mn to £150mn.

“With these solid foundations in place, we can focus on delivering experiences that delight our 20 million customers. There is much work to do, but we have already seen our efforts rewarded with new product sales increasing 24% YoY over the last three months. I am energised by the progress we have made so far and excited for the next phase of our journey,” José Antonio Ramos Calamonte, chief executive officer of Asos, noted at the time.


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