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Asos hunts for fifth warehouse to improve delivery capacity

According to The Telegraph, finance chief Mathew Dunn said the move would allow Asos to reach over £6bn in capacity by the end of 2023

Asos is reportedly planning to open a fifth warehouse in continental Europe in a bid to improve its home delivery capacity, according to The Telegraph.

The online giant is said to have told investors of the plan this month, and is reportedly in the “early planning stages” of setting up the latest fulfilment centre.

The move comes after the group has seen a surge in business following a boom in online shopping during the course of the pandemic.

According to The Telegraph, finance chief Mathew Dunn said the move would allow Asos to reach over £6bn in capacity by the end of 2023. 

The group currently operates from depots in the UK, Germany and the US, and is set to open a new warehouse in Lichfield next year.

In light of rising costs following disruptions to global supply chains, the group is now looking to introduce more routes by sea as an alternative to air freight. It is also planning to use additional ports for entry into the EU to reduce custom waiting times, with an aim to return lead times to four days from eight.

Last month, the group reported that total sales soared 26% to £1.24bn in the four months ended 30 June 2021, up from the £983.3m reported the previous year, as the retailer continued to attract more customers.

Total group revenue also increased over the period, rising by 27% to £1.28bn, up from £1.01bn in 2020. Asos said this came against a backdrop of continued restrictions on consumers, “volatile” demand and increased global supply chain pressures.

Despite the rise in sales, the retailer stated that trading in the last three weeks of the period was more muted, however, as continued Covid uncertainty and “inclement weather”, particularly in the UK, impacted market demand.

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