Asos to ramp up investment scheme following strong international sales

London - Warehouse scandals in the UK seems to have done little to harm to online pure-player Asos sales, as the company reported a 52 percent increase in international sales during its Christmas trading period.

Sales in Asos home market of the UK grew 18 percent to 244 million pounds for the four months to the end of December, as international sales reached 362 million pounds during the same period, revealed the online retailer in its financial update. Asos managed to capitalise on opportunities to grow its international business following the devaluation of the pound after the EU referendum, which helped the company’s overall sales increase 36 percent during the period - Asos fastest growth in 3 years.

“The immediate weakness meant that we invested in price, captured the weakness and the benefit in sales and invested heavily in the proposition,” said Nick Beighton, Asos chief executive officer during a conference call with analysts on Thursday. Asos lowered prices in the US, Australia and Russia and managed to cut delivery time to these countries as well, which undoubtedly helped boost sales. “Delivery and price are very enduring in customers eyes and customers will have benefitted,” added Beighton.

In reaction to the company’s increasing international sales, Beighton revealed that Asos aims to increase its investment in its logistics to help maintain its current performance. Capital expenditure guidance is set to grow between 150 million pounds and 170 million pounds over the next year, as Asos will invest in strengthening its operational and technical capabilities. The online pure player is set to speed up automisation as well as mechanisation in its European hub and open a new warehouse in the US.

The announcement comes not long after Asos revealed plans to create an additional 1,500 roles at its head office in London over the next 3 years, after it invested 40 million pounds in renovating its office to offer workers a “cutting edge, tech lead” working area for future success.

Photo: Courtesy of Asos