International expansion for ASOS.com mean should mean they can sell more clothing ad fashion items in their overseas territories, such as North America. International sales is a key part of their strategy and they claim to have over 7 million worldwide shoppers.
ASOS, who offer international shipping, the UK based fashion web store has just announce it has signed an agreement to establish a new North American e-commerce fulfillment centre in Union City, outside of Atlanta, Georgia. Fit-out is expected to commence shortly with operations starting in Autumn 2018.
ASOS international growth
This fulfillment centre will significantly enhance ASOS.com's US customer proposition providing more cost effective, faster and more flexible delivery options to shoppers in the USA.
As part of its planned, phased development programme, ASOS will initially invest c.US$40 million in fit-out, establishing a 10 million unit capacity facility with the opportunity to expand further at the appropriate time.
The agreement marks a significant progression in the Company's targeted geographic growth strategy into international territories such as America.
Nick Beighton, CEO, commented:
"This agreement is a major step forward for ASOS in the US and demonstrates the opportunity we believe lies ahead in this key market. Our US business delivered 39% constant currency growth in the first six months of the current financial year following sales of £179m in the year ended August 2016. Our US fulfillment centre will enable us to significantly develop our proposition for our 20-something US customers supporting our continued growth and future ambitions."
Who are ASOS?
ASOS.com is a global fashion destination for 20-somethings. They sell cutting-edge fashion and offer a wide variety of fashion-related content, making ASOS.com the hub of a thriving fashion community worldwide. They sell over 85,000 branded and own-label clothing and accessory products through localized mobile and web experiences, delivering from our fulfillment centres in the UK, US and Europe to almost every foreign country in the world.
They tailor the mix of own-label, global and local brands sold through each of our eight local language websites: UK, US, France, Germany, Spain, Italy, Australia and Russia.
ASOS's websites attracted 146 million visits during June 2017 (June 2016: 123 million) and as at 30 June 2017 it had 15.0 million active customers (30 June 2016: 12.0 million), of which 5.2 million were located in the UK and 9.8 million were located in our international territories (30 June 2016: 4.6 million in the UK and 7.4 million internationally).