Asos will build giant £90m warehouse in UK and recruit 2,000 workers

Asos will build giant £90m warehouse in UK and recruit 2,000 workers

01/08/2021

Asos will build giant £90m warehouse in UK and recruit 2,000 workers over next three years – after £142m profits amid surge in online sales due to Covid

  • Asos saw its  annual profits quadruple amid surge in online pandemic shopping 
  • It is now set to open a £90 million UK warehouse which will be staffed by 2,000
  • The retailer plans to open the centre in Lichfield, Staffordshire within 12 months

Online fashion group Asos has announced it will invest £90m in a new centre after annual profits quadrupled last year. 

The retailer plans to open the centre in Lichfield, Staffordshire within 12 months and will employ 2,000 people at the site over the next three years.

The 437,000 square feet, AEW and Allianz Real Estate joint venture warehouse at Fradley Park will open within 12 months and will be fully operational by 2023, Asos said in a statement. 

The company in October reported it had seen its annual profits more than quadruple thanks to cost-cutting action and as customers returned fewer items amid the pandemic.

Asos plans to open a new distribution centre (pictured another near Barnsley) in Lichfield, Staffordshire within 12 months and will employ 2,000 people at the site over the next three years

Asos chief executive officer Nick Beighton said: ‘This significant investment in infrastructure and large-scale job creation is a reflection of the confidence ASOS has in its future and the quality of the skills and talent available in this well-placed location.’

Business secretary Alok Sharma said the firm was a ‘great British success story’ with a ‘skilled workforce’.

‘This job-creating investment in Lichfield is exactly the type of long-term commitment we need from businesses as we build back better from the pandemic,’ Mr Sharma added.

The company in October reported it had seen its annual profits more than quadruple thanks to cost-cutting action and as customers returned fewer items amid the pandemic

Asos chief executive officer Nick Beighton said: ‘This significant investment in infrastructure and large-scale job creation is a reflection of the confidence ASOS has in its future’

Asos reported pre-tax profits of £142.1 million for the year to August 31, up 329% from £33.1 million a year earlier, as sales jumped 19% including 18% growth in the UK.

It shrugged off soaring costs due to the pandemic by making savings across the group, while a trend for customers to buy more carefully and return less also offset plunging demand for ‘going-out’ items. 

Marks & Spencer’s quarterly sales drop by more than 7% compared to 2019

High street giant Marks & Spencer revealed today it had seen sales fall in the past three months thanks to tough coronavirus restrictions – although its food division grew during the pandemic.

Purchases in the quarter leading up to December 26 fell 7.6% on a like-for-like basis, with the food division increasing 2.6%, but clothing and home sales dropped 24.1%.

It shows how the national lockdown in England hit particularly hard, with both food and non-food sales down 4.5% and 40.5% respectively.

Online sales were strong thanks to a new tie-up with Ocado to offer grocery deliveries for the first time as shoppers were keen on buying sleepwear and leisurewear as they stayed indoors.

 

Mr Beighton said at the time: ‘Life for our 20-something customers is unlikely to return to normal for quite some time.’

But he said in the face of the pandemic, Asos had ‘met this challenge head on’.

The group upped its full-year profit outlook in August as it said customers were being more careful about what they buy to avoid sending clothes back during the crisis.

It said shoppers were returning fewer items because they have changed what they buy on the site, switching from formalwear to products such as activewear and mascara, which are less likely to be sent back in normal times.

Asos said UK customer numbers rose 11% over the year to 7 million.

But while online outlets see profits soar, the future of the high street is hanging in the balance as a second lockdown looms.

A raft of popular high street stores including Oasis, Laura Ashley, Debenhams and Warehouse shut up shop after being forced into administration when the UK went into lockdown. 

Today, Marks & Spencer revealed it had seen sales fall in the past three months thanks to tough coronavirus restrictions – although its food division grew during the pandemic.

Purchases in the quarter leading up to December 26 fell 7.6% on a like-for-like basis, with the food division increasing 2.6%, but clothing and home sales dropped 24.1%.

It shows how the national lockdown in England hit particularly hard, with both food and non-food sales down 4.5% and 40.5% respectively.

Online sales were strong thanks to a new tie-up with Ocado to offer grocery deliveries for the first time as shoppers were keen on buying sleepwear and leisurewear as they stayed indoors.

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