British online fashion retailer Asos will spend more than £30m on a second warehouse in the US as part of a major investment in its international expansion. It currently ships most of its US orders from the UK.
Nick Beighton, Asos chief executive, said operations at the new facility in Atlanta, Georgia, would start in autumn next year, providing space for 10m accessories and items of clothing.
“This agreement is a major step forward for ASOS in the US and demonstrates the opportunity we believe lies ahead in this key market,” he said.
Established in 2000, Asos is Britain’s most valuable online fashion retailer, with annual sales of £1.4bn and expanding operations in markets from Australia and Russia.
The website offers 85,000 products from 900 brands, and adds around 4,000 new items each week. It has 15m customers worldwide, only 5.2m of which are in the UK.
Currently, US sales make up around 12% of Asos’ total sales globally, with 25% of those sales being dispatched from its centre in Ohio and the rest delivered from Britain, according to company figures.
Beighton added that with business growing in the US, operation and logistics would be key to achieving their goal as the number one online retailer for young consumers.
“Our US business delivered 39% constant currency growth in the first six months of the current financial year following sales of £170m in the year ended August 2016,” he said.
“Our 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, the retailer said it had been looking for a US fulfilment centre, given that the bulk of orders for the US market were being shipped from the UK.
Brent Dorfman, Asos vice president of logistics, said the location of the new warehouse was ideal to develop the company’s US presence and would create 1,600 jobs for the area.
“Atlanta is an ideal location for us. We will use the region’s transportation network and deep pool of talent to deliver Asos’ best-in-class service to US customers,” he said.
Nathan Deal, governor of Georgia, said he welcomed the investment into the area.
“We appreciate Asos’ significant investment in Georgia as they grow their presence in the US and look forward to the company’s success here.”