ASOS plc (LON:ASC) will invest US$40mln on a second distribution centre in the US as part of the online fashion retailer’s international expansion plan.
The new warehouse, near Atlanta, will have space for 10 million accessories and items of clothing with operations due to begin in autumn of next year.
ASOS, the UK’s most valuable online fashion retailer with a market capitalisation of £5bn, said the facility marks a “significant progression” in its global expansion.
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“This agreement is a major step forward for ASOS in the US and demonstrates the opportunity we believe lies ahead in this key market,” said chief executive Nick Beighton.
“Our US fulfilment centre will enable us to significantly develop our proposition for our 20-something US customers supporting our continued growth and future ambitions."
US sales account for 12% of the group’s total sales, growing at a faster pace than the UK.
The US division delivered a 38% increase in US sales in the first quarter to £94.4mln, compared to a 16% increase in its UK arm to £234.6mln.
A shift in consumer behaviour towards online shopping continue to support ASOS during the period, with overall retail sales up 38% to £889.2mln and pre-tax profit up 14% to £27.3mln.