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Apparel gigant closes center distribution. Customers choose Temu and Shein

Odzieżowy gigant zamyka centrum dystrybucyjne. Klienci wybierają Temu i Shein

A well-known British clothing brand has announced the closure of a major distribution center. The decision is the effect of pressure from the growing competition of Chinese e-commerce platforms, such as Shein and Temu, which currently attract young customers more effectively. Closing also means the necessity of seeking new employment by employees of the closed warehouse.

The British company ASOS Plc informed on Wednesday about a one-time write-off of the loss of value, which will exceed 200 million dollars in the fiscal year 2025, due to the “suspension of operations” of the distribution center in Atlanta. This decision is the effect of difficult business conditions, with the facing the internet apparel retailer – reports Reuters.

ASOS is losing young people. Shein and Them are “picking up” customers

In last years ASOS has worked on transformation of its business after losing popularity among the young target group and problems related to overstock . At the same time in the market are gaining importance of fast-fashion brands offering affordable prices, such as Shein or Temu.

The decision to gradually extinguish operations at the distribution center in Atlanta was taken after completion of the multi-year project automation of warehouses. From the second half of 2025 year servicing customers in the US will be implemented from an automated logistics center ASOS in Great Britain and from a smaller local facility.

Asset of over 200 million dollars. ASOS closes center distribution

As a result of this change ASOS expects a one time charge financial level of about 190 million funds (231,91 million dollars) in the fiscal year 2025. From fiscal year 2026 the company expects one savings in amount from 10 to 20 million pounds per year in basic profit operation.

Reuters writes, that ASOS intends to put up for sale the facility in Atlanta. Seven employees will be offered new positions, a many employees employed by external suppliers of logistics services will be offered opportunities for employment in nearby locations – the company stated.

This step is part of a larger strategy of the company, which has the purpose of improving financial performance and increasing efficiency in the difficult market environment.

ASOS is a British online shop specializinginthesaleoffashionandcosmetics.Thecompanyoffersproductsover850brandsanditsownlineofclothingandcosmetics.accessories. The retailer makesshipmentto196countriesacrosstheworld.

Targetedmainlyto”youngadults”,thebrandhasgained astrongpositioninthefashiononline industry.

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