Asos asks suppliers for discounts in bid to cut costs
Asos has asked suppliers for discounts on its orders as the etailer bids to cut costs in the wake of a string of profit warnings.
The online fashion business has written to suppliers to request a 3% reduction in prices on all stock it receives after September 1.
Asos insisted the “necessary change” in payment terms would “fuel joint growth” for the pureplay and the brands it stocks.
The business is under increasing pressure after issuing three profit warnings in the space of a year and is seeking ways to streamline its cost base.
Asos has suffered in the wake of “operational issues” arising from the opening of a new warehouse in the US, where growth was “lower than expected” in the four months to June 30.
Full-year profits are now expected to come in between £30m and £35m on a pre-tax basis.
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