Local Asos growth slows
Despite a strong Christmas trading season, Asos sales have slowed in Australia.
Total retail sales for the British online fashion retailer jumped 38 per cent to £335.7m in the four months to the end of December. Sales in the UK, Asos’ biggest market, increased by 37 per cent to £133.7m
“We have enjoyed another strong Christmas and made a good start to the financial year, with retail sales growth for the four months to 31 December 2013 up 38 per cent to £335.7m,” Nick Robertson, CEO of Asos, said.
International sales for the online retailer grew by 38 per cent to £202m, with Europe reporting the largest increase at 69 per cent, however, its Rest of World (ROW) division which includes Australia, Russia, and China, saw a decline with sales slowing to 19 per cent from 26 per cent in the previous quarter.
Robertson said the segment had been dragged down by Australia, where the currency had strengthened against the pound.
“Retail sales in the UK were particularly strong at 37 per cent, and internationally sales grew by 38 per cent with a notable performance from the EU segment at 69 per cent. These results were driven by significant improvements to our customer proposition, including better delivery options, additional payment methods, and the roll out of our premier service in key international markets,” Robertson said.
Asos launched a dedicated Australian site in September 2011, which has since has grown to be Asos’ third largest market outside its home of the UK. It launched an Australian mobile site in September 2012, as well as a dedicated Australian office in Sydney.
Asos plans to open its European distribution centre later year this.