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Asos reportedly mulling closure of Outlet department

By Rachel Douglass


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Secret Sales x Asos. Credits: Secret Sales.

British e-tailer Asos is believed to be considering closing the doors of its outlet department as part of its ongoing strategy to improve profitability.

Asos Outlet, which was launched back in 2008, houses non-strategic third-party brands through a dedicated online store, offering customers up to 70 percent off on end-of-season products.

Its potential shuttering could put 15 jobs at risk of redundancy, according to Drapers, which had initially reported the news and had further noted that there would be a 30-day consultation period with the division’s team.

The media outlet added that Asos is understood to be aiming to redeploy those impacted into other roles, if possible.

A spokesperson for Asos told Drapers: “We are currently consulting with members of our Outlet team on proposals to change how the department operates. It would be inappropriate to comment further at this stage.”

If Asos goes ahead, it will be the latest move under its ‘Driving Change’ turnaround plan, formed last year in a bid to raise profitability and establish financial flexibility.

At the time, Asos had been facing increasing operating losses, supply chain disruptions and lowering consumer confidence, each of which played a part in impacting its profits.

However, by June of this year, the e-commerce giant finally reported a return to profitability, with its EBIT up more than 20 million pounds, despite revenue still declining 14 percent.