ASOS to improve US delivery last mile with $40mn Atlanta warehouse

By Pouyan Broukhim

ASOS has announced that it will invest $40mn into constructing a warehouse in Atlanta, with the online fashion retailer pursuing international expansion to boost sales and improve its grip on the delivery last mile.

"This agreement is a major step forward for ASOS in the US and demonstrates the opportunity we believe lies ahead in this key market,” said CEO, Nick Beighton.

The move comes at a time when ecommerce firms are recognising the importance of minimising the delivery last mile in connecting with buyers. The retail industry has remained in decline throughout 2017 as companies are faced against an ever-competitive online presence.

Amazon’s announcement of ‘The Hub’ and multiple other companies including Ford Motors Inc. and Foxconn announcing billion-dollar investment projects in the US demonstrate the growing emphasis that retailers are putting on being as close to the consumer as possible.

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With five million of its 15mn strong customer base located in the UK, ASOS’s $40mn warehouse will greatly enhance its customer proximity in the US, something that Beighton hopes will continue the company’s growth in the region.

"Our US business delivered 39% constant currency growth in the first six months of the current financial year following sales of $179mn in the year ended August 2016.

“Our US fulfilment centre will enable us to significantly develop our proposition for our 20-something US customers supporting our continued growth and future ambitions."

The warehouse itself will accommodate for 10mn items at a time and will create 1,600 jobs in the area.

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