Asos inks US fulfilment centre deal, will spend $40m in big step forward in American ambitions
Major US expansion is on the cards for London-based fashion e-tail giant Asos with the company saying Tuesday that it has signed an agreement to establish a new North American e-commerce fulfilment centre in Union City, outside of Atlanta, Georgia.
Fit-out is expected to start shortly with operations beginning in autumn next year. This really is a big move for the firm with the fulfilment centre set to significantly enhance its US customer proposition “providing more cost effective, faster and more flexible delivery options.”
And when it comes to fashion e-tail, fulfilment really is the key factor because even the best product can sit on warehouse shelves if customers decide that the delivery speed is too slow or too inconvenient.
As part of its planned, phased development programme, Asos will initially invest around $40m in fit-out, establishing a 10m-unit capacity facility with the opportunity to expand further at the appropriate time.
The company said the agreement marks a significant progression in its targeted geographic growth strategy with CEO Nick Beighton saying it’s “a major step forward for [the brand] in the US and demonstrates the opportunity we believe lies ahead in this key market.”
That certainly makes sense with its US business having 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.