ASOS to close Outlet department
Digital fashion giant ASOS is set to close its discount outlet department, home to its non-strategic third-party brands.
Initially launched in 2008, ASOS has offered shoppers a dedicated space to buy end-of-season products from third-party brands at up to 70% off. Outlet brands include Abercrombie & FitchBershkaFrench Connection
The closure is part of its plans to return to profitability as part of the retailer’s ‘Driving Change
The outlet closure will put 15 jobs in risk of redundancy and there will be a 30-day consultation period for those impacted, reports said. The retailer said it is currently consulting with members of the related team on proposals to change how the department operates, but did not comment further.
As part of a wider restructure, ASOS also plans to withdraw 35 unprofitable brands from its site by the end of the first half of the financial year on 28 February.
In June, a trading update for the three months to the end of May showed total group revenue fell 11% to £858.9 million. UK total sales were down 14% with total sales to the EU down 4%.
