British online fashion retailer ASOS has announced restructuring plans to its business operations. The retailer on Wednesday announced important changes to help it grow while navigating a tough retail environment. The restructuring focuses on integrating commercial and customer functions, with the aim of increasing efficiency.
Streamlining Operations and Strengthening Brands
ASOS is introducing a dedicated cross-functional team to further drive growth. The plan will ensure the brands Topshop and Topman operate independently. ASOS highlighted that this move is important to ensure that these brands operate independently and achieve growth.
ASOS was founded in 2000, which also highlighted efficiencies in capital structure. ASOS has put in a lot of work to cut their stock levels by a lot and improve the offering. Moreover, the company has managed to refinance its debts, further ensuring better prospects for the future.
Addressing Inventory Surplus and Shifting Strategy
In recent years, ASOS has faced challenges, especially among its young client base, which has fallen out of favor. The inventory surplus has also created challenges for growth in recent years for the company. Due to these issues, ASOS started to transform its business in a more proactive manner.
In January, the company announced a $200 million one-off impairment charge for fiscal 2025 related to the “mothballing” of its Atlanta distribution center, as it continues to take steps to transform its business.
Consolidating Teams for Better Decision-Making
ASOS announced that it would also review its people experience, corporate affairs and strategy teams. The objective is to make decision-making easier and better communication internally so that the company can easily adapt to changing market forces.
Right now, ASOS has 20 million regular clients worldwide and in more than 200 markets. The restructuring changes will be implemented by the company in April, allowing the company to become more focused and business-like.
