British online retailer Asos expects 190 million pound loss from Atlanta distribution centre closure

Business

Asos x Nordstrom Credits: Asos.

British retailer Asos Plc has announced changes to the format of its distribution operations. In a press release, the online retailer explains that it wants to serve American customers through "smaller, flexible and local" locations in the US and is therefore closing its Atlanta distribution centre.

This will result in a loss of approximately 190 million pounds in the 2025 fiscal year. Despite the expected loss, Asos emphasises that the closure will ensure sustainable growth from the 2026 fiscal year.

The decision to close the Atlanta location follows the completion of a multi-year warehouse automation project. Asos said it would be more customer-friendly to serve US customers from its automated distribution centre in Barnsley, UK, and smaller local locations in the US, which can respond to orders more quickly, from the second half of 2025.

The closure of the Atlanta distribution centre will also affect seven Asos employees in Barnsley, who may be offered alternative roles. In addition, Asos said it will work with logistics partners to redeploy hundreds of employees from Atlanta to nearby locations.

The move means Asos expects to see a one-off drop of around 190 million pounds in reported profits in fiscal 2025, and then cut profits by between £10 million and £20 million annually from fiscal 2026.

This article originally appeared on FashionUnited.NL. It was translated to English using AI and edited by Rachel Douglass..

Despite the expected loss, the retailer is positive. The company expects the new model to deliver better customer service and higher returns. The US, the press release underlines, remains an important market for Asos, with sustainable sales growth and an 8 percent EBITDA margin expected in the medium term.

Asos

Distribution