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ASOS, a British fashion and cosmetic retailer, launched its outlet in 2008 dedicated within the Asos platform for end-of-season products from third-party brands at up to 70 per cent off gradually and has become a hub for non-strategic smaller brands. According to sources the outlet section is planning to close as the retailer envisions expanding into key strategic brands that will drive profit and revenue.
Previously this year, ASOS announced the removal of 35 unprofitable brands from its online platform by the end of the first half of the financial year. There will be a 30 day consultation period with the outlet team, currently employing 15 people as ASOS will attempt to re-employ them into other possible roles.
This shift in strategy is part of the company’s ‘Driving Change’ plan outlined last year including four main priorities to overhaul the company, renew its commercial model and improve inventory management, simplify and reduce cost profile, ensure a robust and flexible balance sheet, reinforce the leadership team and refresh the culture.
According to a statement given by an ASOS spokesperson, “We are currently consulting with members of our Outlet team on proposals to change how the department operates. It would be inappropriate to comment further at this stage.”
