Asos will focus its international business on the key areas of France, Germany and the US over the next couple of years, according to new chief executive Nick Beighton.
The business reported an 18% increase in group sales to £1.15bn for the year to August 31, with UK sales climbing 27% during the year to £473.9m. International sales grew 11% to £574.8m.
Beighton, who succeeded Asos founder Nick Robertson as chief executive in September, said: “The Asos strategy is a winning one and it isn’t changing. There will be a greater focus on international and cleaner execution on it from me.
“Our focus for the next couple of years is to keep the UK hot with the right product and customer innovation. Otherwise we will focus on France, Germany and the US. That’s where we will be concentrating the majority of our investment.”
However, Beighton insisted the business would not ignore the rest of its international territories, which include Australia, Russia and China. “We have a leading market share in Australia. China is still in start-up mode. Its early doors but we are planting the seed for future growth.”
Beighton said the European growth would be supported by expansion at its Eurohub distribution centre in Germany. “The acceleration of ecommerce penetration in Germany and France is greater than the UK and we are building a bigger warehouse so we can hold 20 million units of stock and offer next day delivery.”
Asos will invest £80m into the Eurohub centre, as well as mobile technology and replatforming, over the next 12 months.
It will launch a loyalty scheme in the UK during the next six months following an extensive trial with 100,000 shoppers. Customers will earn five points for every pound they spend meaning they will earn a £5 voucher when they spend £100.