LONDON – Online fashion retailer ASOS is spending $40 million (£30.7 million) on a new warehouse in Atlanta to help fuel sales growth in the US, the company announced on Tuesday.
The giant fulfillment centre in Georgia, which will be ten times the size of its Barnsley warehouse, will have space for 10 million items of clothing and accessories. The Union City warehouse will create 1,600 local jobs in the area, according to a release.
US sales make up 12% of UK-based ASOS’ total sales globally and are growing twice as fast as UK sales.
CEO Nick Beighton said: “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 £179 million in the year ended August 2016. Our US fulfilment centre will enable us to significantly develop our proposition for our 20-something US customers supporting our continued growth and future ambitions.”
ASOS is known for its millennial focused fast-fashion, selling own-brand products alongside brands like Adidas and Polo Ralph Lauren. The website has 85,000 products from 900 brands on its site and adds around 4,000 new items each week. It has 15 million customers worldwide, 5.2 million of which are in the UK.
ASOS Vice President of Logistics Brent Dorfman says in a release announcing the new warehouse: “Atlanta is an ideal location for us, it is a vibrant and growing international city with a diverse culture. We will use the region’s transportation network and deep pool of talent to deliver ASOS’ best-in-class service to US customers.”
Georgia Governor Nathan Deal says in a release: “We appreciate ASOS’ significant investment in Georgia as they grow their presence in the US and look forward to the company’s success here.”
ASOS’ UK warehouses have come under scrutiny from MPs and campaigners, with accusations that contracts were “exploitative.” CEO Nick Beighton earlier this year worked a shift at ASOS’ main Barnsley warehouse, saying conditions were “great.”
The Barnsley warehouse was hit by a fire in 2014 and earlier this year a fire at ASOS’ German warehouse destroyed £6 million worth of stock.