Asos eyes fifth warehouse to slash delivery times

Asos is reportedly on the search for a new warehouse in continental Europe to help ramp up its delivery speeds in key markets.

The British fashion giant, which currently has fulfilment centres in the UK, US and Germany, told investors this month it is in the “early planning stages” of a fifth warehouse, The Telegraph reports.

In January, the company announced plans to employ 2,000 people at a new 90 million pound fulfilment centre in Lichfield, Staffordshire, over the next three years. The 437,000 square foot warehouse is based at Fradley Park and will be operational this year, Asos said.

Plans for its fifth fulfilment centre follows a surge in online sales during the pandemic.

The e-tailer’s chief financial officer Matthew Dunn said the move could allow the company to reach over 6 million pounds in capacity by end of 2023, according to The Telegraph.

It is also working on balancing its sea, air and road freight amid a hike in costs linked to disruption caused by the pandemic on global supply chains. As part of this, the company has introduced more sea routes.

The retailer is also using additional ports for entry into the EU in a bid to reduce its lead time from the UK to Europe which has increased in recent months due to Brexit.

A shortage in heavy goods vehicle (HGV) drivers in the UK linked to Brexit is reportedly not impacting Asos’ day-to-day business.