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Asos is set to close its US distribution centre and instead fulfill its US orders from the UK, as part of efforts to boost the group’s profitability in the long-term. The retailer confirmed plans to mothball its Atlanta distribution centre this year and bring the site to market following the completion of a warehouse automation project.
From the second half of FY25, US customers will instead be served through its automated UK fulfilment centre in Barnsley, as well as through a smaller, more flexible local US site.
It added that US customers will benefit from an “enhanced product offering” following the move, including a broader product assortment and faster speed to market.
In addition to the closure, Asos will roll-out Partner Fulfils in the US in FY25, “further broadening the breadth and depth of the best product from our partner brands”.
Following the closure, seven affected employees will be offered alternative roles where possible, while third-party logistics partners will look to redeploy several hundred staff to nearby sites.
Asos expects the move to provide a £10-20m annualised EBITDA boost from FY26 onwards, and a similar benefit to free cash flow. The impact on profitability in FY25 is expected to be “broadly neutral”.
In a statement, the retailer 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.
“Asos opened a local US office in 2024 and will continue to grow and build its local presence which it sees as crucial in building great customer experiences. The US remains a core market for Asos, which it believes can return to sustainable revenue growth and generate around 8% adjusted EBITDA margins in the medium-term.”
