ASOS has awarded logistics giant XPO Logistics the contract to manage a new fulfilment centre in Lichfield, which is due to begin operations in August creating 2,000 new jobs over the next three years.
The 437,000 sq ft distribution centre is based at Fradley Park and will complement ASOS's existing fulfilment facility in Barnsley. XPO also manages the ASOS Barnsley facility – and has also just extended the long-term contract to do so – as well as a returns operation in Doncaster.
ASOS chief operating officer Mark Holland said of the new deal: "Over the past eight years, the XPO team has proven itself to be a superb partner for us, so we are very pleased to be expanding the scope of XPO's role as we build the foundations for our future growth in the UK and around the world."
XPO Logistics managing director, supply chain – UK and Ireland Gavin Williams added: "These two, new multi-year agreements with ASOS are a testament to the dedication of our team and the cutting-edge expertise we have showcased at the Barnsley facility over the last eight years. We're eager to apply our know-how to our third ASOS site with the launch of operations in Lichfield."
ASOS has seen sales boom during the pandemic as customers were forced to shop online and it was able to pivot its product offer quickly to serve increased demand for leisure, lounge and sportswear. It also won the race to acquire the flagship brands from the collapsed Arcadia Group – Topshop, Topman and Miss Selfridge – and has since successfully absorbed them into its operations.
The AIM-listed young fashion giant recently revealed that sales had jumped 24% to £1.98 billion in the six months to the end of February, with pre-tax profits up 253% to £106.4 million.
It also announced last week that it was undertaking a £500m fundraise to support its future global growth.
ASOS rival Boohoo, which has also prospered during the pandemic, has also expanded its logistics facilities to cope with growing demand and has recently secured a new facility in Daventry, which was formerly operated by Arcadia.