Asos Plc, a British retailer, has revealed modifications to the structure of its distribution business. The online retailer said in a news release that it is closing its Atlanta distribution hub in order to serve American consumers through “smaller, flexible and local” facilities in the US.
The fiscal year 2025 will see a loss of about US $ 231.91 million as a result. Asos underlines that the closure will guarantee sustained growth starting in the fiscal year 2026, notwithstanding the anticipated loss.
After a multi-year warehouse automation project was completed, the Atlanta facility was closed. According to Asos, starting in the second half of 2025, it will be more convenient for customers to receive their orders from its automated warehouse in Barnsley, UK, and smaller local stores in the US that can react to requests faster.
Seven Asos workers in Barnsley will also be impacted by the closing of the Atlanta distribution centre; they might be offered other positions. Furthermore, Asos announced that it will redeploy hundreds of workers from Atlanta to other areas in collaboration with logistical partners.
As a result, Asos anticipates a one-time decline in reported profits of about US $ 231.91 million in fiscal 2025, followed by an annual profit reduction of between US $ 12.21 million and US $ 24.41 million starting in fiscal 2026.
The retailer is optimistic despite the anticipated loss. The business anticipates increased returns and improved customer service from the new approach. The press release emphasises that the US is still a significant market for Asos, with steady sales growth and a medium-term EBITDA margin of 8 per cent anticipated.