Asos is set to shutter its outlet department that houses non-strategic third-party brands, putting 15 jobs at risk of redundancy.
The online giant’s latest move comes as it looks to focus on key strategic brands to improve profitability as part of its “Driving Change” turnaround plan released last October.
Asos Outlet was launched back in 2008 as a dedicated shop within Asos for its end-of-season products from third-party brands at up to 70% off.
It has also become a section for smaller non-strategic brands over recent years.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Drapers understands that there will be a 30-day consultation period with the outlet team, which currently employs around 15 people. Asos will reportedly aim to redeploy those affected into other roles wherever possible.
An Asos spokesperson told the title: “We are currently consulting with members of our Outlet team on proposals to change how the department operates. It would be inappropriate to comment further at this stage.”
Chief executive José Antonio Ramos Calamonte unveiled an overhaul of the ecommerce giant’s business model last October after a string of operational problems and raging inflation hammered its profits.
In June, the online fashion giant hailed a return to profitability while Mike Ashley’s Frasers Group raised its stake in Asos once again from 19.3% to 19.8%.
Click here to sign up to Retail Gazette‘s free daily email newsletter
