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ASOS shutters US warehouse as part of cost-saving turnaround plan

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Asos has announced a one-off impairment charge of £200m after it decided to idle its main US warehouse near Atlanta, Georgia, in a move aimed at cutting costs and boosting profitability.

Later this year, the online fashion retailer’s American customers will be served from its UK automated distribution center in Barnsley and from a smaller, more flexible facility in the US.

The closure of the Union City site is expected to increase Asos’ pre-tax profits by £10m to £20m from 2026, although it will also result in a £190m fall this financial year. The news sent Asos shares rising 6.5 percent on the day, despite having fallen more than 85 percent over the past five years.

While Asos’ US arm remained profitable, the company admitted that neither US demand nor inventory levels could justify maintaining a large-scale warehouse. Competition has intensified from fast-fashion rivals Shein and Temu, with rival Boohoo also pulling back by closing its US site. According to Asos, its plan to serve US customers from the UK and a smaller US facility will increase product variety and reduce fulfillment costs, although shoppers will experience slower delivery times.

Asos said only seven direct employees were affected by the closure, with logistics partners aiming to redeploy hundreds of staff to nearby sites. The move follows a series of “remedial” measures described by CEO Jose Antonio Ramos Calamonte to stem losses and reset the retailer’s business model. The strategy emphasizes lower inventory levels, fewer markdowns, and a “test and react” approach to inventory.

The shuttered Union City warehouse first opened in 2018 under former CEO Nick Beaton, who viewed it as a landmark investment for Asos’ expansion into North America. Analysts at Panmure Liberum say the closure signals an “acceptance of lower long-term ambitions” for Asos in the US. Still others, such as Deutsche Bank, see “significant opportunity” for international growth in both the US and Europe, where Asos maintains local infrastructure.


Jimmy Young

Jamie is Senior Reporter at Business Matters, with over a decade of experience reporting on UK SME business. Jamie has a degree in Business Administration and regularly participates in industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

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