Home » UK Business News » Asos to shutter Staffordshire warehouse to cut costs
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Asos will close its Midlands warehouse in Lichfield, Staffordshire, just two years after its opening.
The closure is part of a cost-cutting drive aimed at enhancing profitability.
Despite a £90 million investment in full automation for the facility, Asos will shutter the fulfilment centre.
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The warehouse has over 700 employees who don’t work directly for the fashion retailer.
Asos CEO José Antonio Ramos Calamonte said: “The new commercial model we are running, with 30% less stock than at the beginning of the year, is a formula that runs much lighter in stock and hence we don’t need such a big logistics footprint.
“If we don’t need a facility, we simply mothball it.”
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The warehouse's closure is expected to yield approximately £20 million in annual savings.
The retailer can either sell the site or reopen it in the future, as necessary.
These decisions come in the wake of Asos revealing a pre-tax loss of £296.7 million for the year ending on September 3.
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It substantially increased from the £31.9 million loss reported the previous year.
As part of its ongoing turnaround strategy, Calamonte announced plans to prioritize a shift "Back to Fashion" in the next phase of the revival plan.
It follows a year dedicated to cost reduction.
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