ASOS PLC (LSE:ASC) has unveiled plans to shut its Atlanta distribution centre in the US under wider efforts to boost profitability.
US customers will be served by ASOS’ automated UK fulfilment centre in Barnsley, a smaller local site and partners, the online clothing retailer announced on Wednesday.
A £10 million to £20 million annualised benefit to pre-tax earnings was anticipated from 2026 on the move, ASOS said, though a £190 million impairment was expected this year.
ASOS noted seven employees would be directly affected, while third-party logistics partners would “make efforts to redeploy several hundred staff”.
Streamlining efforts came after ASOS transformed the US into a profitable market during 2024, it said.
The Atlanta would be shut in the second half of the year and sold following a multi-year warehouse automation project.
“ASOS remains excited about the opportunity in the US market and believes that its new operating model will better serve its US customer-base, while generating a better return on investment,” the company added.