Friday, June 25

Fashion giant ASOS plans 2,000 new jobs and £90m warehouse

ASOS’ Barnsley warehouse. Photo: ASOS

ASOS has announced it will build a new £90m warehouse in the UK, with plans to hire 2,000 staff at the site.

The online fashion giant’s (ASC.L) fourth global fulfilment centre will be built at a logistics development near Lichfield, Staffordshire, in the West Midlands.

The 437,000 sq ft (square feet) site is expected to be operational within 12 months and fully completed by 2023, processing orders in the UK and abroad. ASOS currently has three sites in Barnsley, Berlin and Atlanta.

Nick Beighton, CEO of ASOS, said: “We’re thrilled to be laying down the foundations for our future growth in Lichfield. This significant investment in infrastructure and large-scale job creation is a reflection of the confidence ASOS has in its future and the quality of the skills and talent available in this well-placed location.

“When fully up and running in 2023, the site will support our ever-increasing customer demand and enable us to develop our offerings and delivery capabilities even further.”

ASOS stocks were trading 1.9% higher in London on Friday morning.

Chart: Yahoo Finance
Chart: Yahoo Finance

READ MORE: ASOS profits quadruple amid lockdown order boom

Doug Pullen, Conservative leader of Lichfield district council, said the creation of so many new roles was “very welcome news” when business conditions more widely were so tough.

“For me personally, ASOS’ clear ambition to contribute in a meaningful way to the communities in which it’s based is incredibly assuring, as is its track record of working closely with the Community union to ensure staff are properly looked after,” he said.

WATCH: ASOS profits up 329% as lockdown boosts orders

Business secretary Alok Sharma also welcomed the announcement, calling the company a “British success story.”

“This job-creating investment in Lichfield is exactly the type of long-term commitment we need from businesses as we build back better from the pandemic,” he said.

The new site is being developed through an AEW and Allianz Real Estate joint venture.

In October the online fashion retailer said pre-tax profit in the year to 31 August surged, rising 329% to £142.1m ($182m).

The company said the jump in profits — which was ahead of forecasts — was driven by improvements in the underlying efficiency of the business and a decline in returns, which offset rising costs due to COVID-19.

Revenue rose 19% in the period to £3.26bn. Asos recorded double digit percentage sales growth in all its markets and signed up 3.1m new customers during the year.

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