Last month, it was reported that online giant Asos was seeking a London site for its first permanent physical store.

The move would be a significant one, as Asos has traded as an online retailer since it was founded 26 years ago. 

With the name As Seen on Screen, the retailer began its journey in 2000 by selling a range of goods and fashion worn by celebrities on TV and in films. 

Although Asos has previously trialled in-person retail via pop-ups and brand partnerships, it has never before committed to a permanent site.

The strongest retail brands “blend digital and physical experiences”

Asos has previously tested various physical pop-ups and brand partnerships, including its London Lido pop-up in June, its Adidas pop-up in April, and its House of Face + Body experience in February.

Although Asos has not confirmed the plans, a spokesperson for the company told Retail Gazette: “We’re always exploring new ways to bring the Asos experience to life for our customers. 

“We’ve learnt a lot from recent pop-ups and partnerships, and while there’s nothing to share just yet, we believe physical retail can play a role in how we continue to meet customers where they are.”

Retail strategy and keynote speaker Paul Brooks believes Asos is plotting its first permanent physical site due to the success of its recent pop-up with Adidas, which ran from 16 to 21 April.

“400 per cent growth in new and reactivated customers isn’t a number you ignore,” he points out. 

“That’s cheaper customer acquisition than anything they’re getting from paid social right now.”

TPP Retail head of retail performance and growth Amy Pethick assures that she does not think Asos is “an ecommerce business abandoning its roots, but a recognition that the strongest retail brands now blend digital and physical experiences”.

“Stores allow customers to discover products, try before they buy, receive styling advice, and engage with the brand in a way online can’t deliver on its own,” she explains.

Would Asos’ physical store be a success?

After focusing on ecommerce for such a long time, would Asos be able to pull off a prosperous brick-and-mortar site? 

Co-founder of HyperFinity and former Asda pricing director Thomas Hill does not think the brand will “successfully create a large high street presence”.

“The model they operate relies on low margin high volumes stock it high and sell it fast models,” he says. 

“This has rarely been successful on the high street for fashion where rents and business rates make profitability extremely hard.”

Retail and spatial expert and chief creative officer of FutureBrand George Gottl believes that the retailer’s physical store success would “depend on how Asos chooses to approach it”.

“The inventory shouldn’t be the main draw, especially for a multibrand retailer like Asos,” he says.

“It needs to create an experience that gives customers a reason to visit. Why would a customer choose to buy a brand via Asos, when they could visit that brand’s own store?”

A broader shift across retail

Asos’ potential move into bricks-and-mortar raises questions about the future of the high street and consumer behaviour.

Pethick notes: “Asos opening a physical store reflects a broader shift we’re seeing across retail. 

“Customers no longer think in terms of shopping ‘online’ or ‘in-store’. 

“They simply expect one seamless brand experience. That’s why we’re seeing digitally native brands such as Gymshark invest in physical locations, not because ecommerce has failed, but because stores can strengthen customer acquisition, build loyalty, reduce returns and complement online sales.”

Regarding what Asos’ potential move into a permanent store says about ecommerce in 2026, Brooks adds: “It tells you the economics of online-only have got harder, not easier. 

“A brand that spent two decades proving you didn’t need a shop is now going looking for one, and that’s the story. 

“When the businesses built to prove physical was optional start opening stores, the argument’s basically over.”

And would Asos stop at just one store, or roll out a host of new physical shops?

Hill thinks they could “possibly” launch more physical stores in the future, but that these would be “limited to two to three in premium brand locations and big cities only”.

Brooks believes that Asos could “slowly” launch more physical stores if its potential first one “earns its keep”.

“They’ve just halved their losses and rebuilt some investor trust, so I don’t see them rushing into a rollout,” he argues. 

“Watch the first one for a year, then decide.”

Click here to sign up to Retail Gazette‘s free daily email newsletter