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ASOS to close US distribution centre to boost profitability

ASOS has announced plans to mothball its US distribution centre and to fulfil customer orders in the country from the UK. The move forms part of… View Article

FASHION RETAIL NEWS UK

ASOS to close US distribution centre to boost profitability

ASOS has announced plans to mothball its US distribution centre and to fulfil customer orders in the country from the UK.

The move forms part of the fashion retailer’s wider efforts to boost profitability.

From the second half of 2025, US customers will be served from the retailer’s automated UK fulfilment centre in Barnsley and through a smaller, more flexible local US site.

ASOS will formally market the facility in Atlanta in the second half of 2025 following the completion of a multi-year warehouse automation project.

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Seven employees directly affected by the closure will be offered alternative roles where possible.

Meanwhile, the retailer’s  third-party logistics partners will try to redeploy several hundred staff to nearby sites.

As a result of the change, ASOS is expecting a £10 million to £20 million annualised EBITDA benefit from FY26 onwards.

ASOS said: “ASOS remains excited about the opportunity in the US market and believes that its new operating model will better serve its US customer-base, while generating a better return on investment.”

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