ASOS sales grow rapidly due to international investments

As ASOS investment in its international fulfilment centres started to get returns, so sales at the fashion retailer rose 26% to £2.36 bn.

ASOS Chief executive Nick Beighton said: “From a global supply chain perspective, good progress was made with the technology to enhance our global supply chain including: facilitating the opening of the new US fulfilment centre, improvements in our carrier management options and improvement in the software we use to manage our customer contacts.”

In Germany, ASOS said the Euro hub phase two extension was progressing to plan. “Within the year, handover of the site was completed along with delivery and commencement of installation for the automated storage system. This automated storage system is now over 95 per cent complete with testing and commissioning well underway. Good progress is also being made on the new warehouse management system which will be installed this year.”

In the US, the company’s one million square foot warehouse in Atlanta is now live for both inbound and outbound despatch, with plans to ramp towards 100 per cent local fulfilment for the US market over the coming year.

“This facility opened with a greater level of mechanisation than we saw in either of our other warehouses, notably conveyers for transporting product to pickers. Nevertheless, this facility will operate as a manual operation during the coming financial year before automation benefits begin to accrue from FY20 onwards.”

A project to increase capacity at the Barnsley hub was completed on schedule, adding two million units of stockholding capability.

“This capacity has also been supplemented with the opening of a multi-use facility at Doncaster. In addition to providing three million units of incremental stockholding capacity, this facility will also undertake returns processing, giving increased capacity and greater flexibility through peak trading and enhancing our returns processing capability longer term.”