LONDON — British online fashion retailer Asos is expanding its fulfillment network with a new location in Union City, Ga., the company said Tuesday.
“This agreement is a major step forward for Asos in the U.S. and demonstrates the opportunity we believe lies ahead in this key market,” said Nick Beighton, the company’s chief executive officer, in a statement. “Our U.S. fulfillment center will enable us to significantly develop our proposition for our 20-something U.S. customers, supporting our continued growth and future ambitions.”
The web site, which serves about 15 million active customers, has signed an agreement to erect the warehouse, which is to be situated outside of Atlanta. Construction of the facility is slated to start soon, and the unit will be operational in fall 2018.
The new Asos fulfillment center is a part of the company’s phased development program. The U.S. warehouse is being created to give customers in the U.S. “more cost-effective, faster and flexible delivery options,” Asos said. The warehouse will create 1,600 new jobs in management, operations, engineering, material handling and administration.
The company is investing $40 million in the warehouse that will have the capacity to store up to 10 million units of clothing and accessories.
Asos reported sales of 179 million pounds in the U.S. last year and said growth in international markets overall outpaced that of the U.K.
The retailer ships to more than 140 countries and has fulfillment centers globally in regions including Europe, the U.S. and China. Its main warehouse is based in Barnsley, the U.K.