Asos invests $40 million on new US warehouse

Asos has announced its plans to open a new US fulfilment centre to provide American shoppers with faster and more flexible delivery options.

The e-tailer will be ploughing around $40 million on fitting out the new warehouse which will situate on the outskirts of Atlanta, Georgia.

The e-tailer currently fulfils around 25% of US orders from a DC in Ohio, while the rest are processed and sent across from its UK warehouse in Barnsley.

The new US fulfilment centre is expected to be operational by autumn 2018. It will have a 10 million unit capacity at launch, with scope to expand further in the future.  

“This agreement is a major step forward for ASOS in the US and demonstrates the opportunity we believe lies ahead in this key market,” said CEO, Nick Beighton.

“Our US business delivered 39% constant currency growth in the first six months of the current financial year following sales of £179 million 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.”

Last year, Beighton said the retailer was benefitting from the short-term consequence of the fall in the pound post Brexit. He said he expected the international business to benefit from the weaker exchange rate, and any extra sales generated would be reinvested into the business and the customer proposition.