Asos delays orders as fashionistas feel pinched
Fashion giant Asos is delaying some fall orders amid fears customers will cut back on new outfits due to the cost of living crisis
Fashion giant Asos has delayed some fall orders due to fears customers will cut back on new outfits amid the cost of living crisis.
Suppliers told the Mail on Sunday that some stock had been completely canceled in recent weeks, at short notice.
Insiders insisted that the cancellations “were not happening at higher than normal levels at this time”, but that there had been “some additional postponements”.
Concern: Fashion retailers like Asos are putting back orders for fall
However, there is growing concern in the industry that online retailers targeting younger shoppers are feeling the pinch.
Asos issued an earnings warning in June, blaming inflation and more shoppers returning items. Its leader Matt Dunn warned of “a shift in consumer sentiment”.
The online retailer said last night that its supply chain operation is ‘working well amid unprecedented global disruption in our markets’.
He added: “We set out a new strategy in November last year, which included measures to buy in shorter lead times and tighten our inventory.
“Against this backdrop and in line with normal industry practice at this time of year, we have postponed a limited number of orders. We value our relationships with our suppliers and will continue to work closely with them.’
But one supplier said he fears the company’s stock levels will be “stuck” and cancellations will become more frequent in the weeks and months ahead.