Asos has announced plans to close its main US distribution centre in the second half of the year and fulfil orders from the UK, which it says will increase profitability and improve speed to market for its products.
The pureplay fashion retailer said it would “mothball” its main US distribution hub in Atlanta, Georgia, and “market the site” in the second half of 2025.
After that point, US customers will be “served from Asos’ automated UK fulfilment centre in Barnsley, and through a smaller, more flexible local US site”.
Asos said this would offer customers “an enhanced product offering, including a broader assortment and faster speed to market of the best and most exciting product while offering competitive delivery speeds and lowering the total fulfilment cost per order”.
The retailer said it would also roll out Partner Fulfils in the US this year, “further broadening the breadth and depth of the best product from our partner brands”.
Asos said it expected to see a £10m-£20m benefit to EBITDA from the changes from the 2026 financial year onwards and a similar benefit to free cash flow.
This year, the impact on adjusted EBITDA is expected to be broadly neutral and a £190m drag on reported profits due to non-cash fixed asset impairments.
The retailer said it “remains excited about the opportunity in the US market” and believes the proposed new operating model “will better serve its US customer base while generating a better return on investment”.
Asos said the US remains a “core market” for the retailer, which it believes can return to “sustainable revenue growth and generate 8%” profit in the medium term.
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