ASOS denies it has internal supply chain problems

By

Nigel TAYLOR

Published
Nov 22, 2021

Online fashion giant ASOS has denied it has its own supply chain crisis in the run-up to the important Christmas trading period.

A Sunday Times report had claimed that the digital UK retailer has had to defer orders from suppliers who claim delays are being caused by labour shortages in its warehouses.

However, the retailer said any delays it’s experiencing are down to global freight disruption rather that deficiencies of its own making.

ASOS said: “We have a robust, professionally organised global supply-chain operation that is functioning well.” 

However, it admitted that “a small number of supplier orders have been deferred but this is normal for retailers.”

The company, which works with hundreds of suppliers and stocks more than 875,000 products, operates out of warehouses in Barnsley, Yorkshire, and Lichfield, Staffordshire, although the latter’s not yet fully operational. It took on another warehouse in Sheffield to create space for the £30 million of stock acquired through its acquisition of Topshop in February.

The company will be particularly sensitive to any negative news at the moment. Its shares have had a rocky ride, not helped in recent weeks by chief executive Nick Beighton abruptly departing alongside a warning that ASOS expected to report profits of £110 million-£140 million this year, compared to £194 million last year. In August, it also announced its chairman Adam Crozier is to leave.

The share price moved upwards after a successful Capital Markets Day this month, however. Yet it has moved down again and is now 10% lower than a week ago.