ASOS PLC (LSE:ASC) is urging its staff to return to the office, warning staff that virtual meetings have a “detrimental” impact on company performance.
Meetings regarding projects, brainstorming, pre-production, and commercial activities, are “vital” to be attended in a face-to-face office environment, the online fashion retailer told staff.
It added that there is a “very real need” for employees to see, touch, and feel the clothes, which is “impossible virtually.”
Asos said it will start taking disciplinary action against staff that don’t abide to its flexible working guidelines, with some teams being asked to come into office at least three times a week.
Asos joins a horde of companies attempting to reignite working in the office, with Amazon having recently started tracking days its workers are at home, blocking those which do not follow the hybrid policy from promotion.
Last month, analysts warned Asos could face weakened demand, increased competition and at-risk margins.
Shore Capital cut Asos’ full-year profit guidance from £85 million to £67 million, predicting that margins will now slip to 2.2% rather than 2.8%.
“We would suggest investors consider travel stocks instead,” veteran retail analyst Clive Black said.