Like other retailers, ASOS is facing significant supply chain disruptions and higher logistics costs. This has hampered performance across the Christmas period with sales in the four months to the end of December rising just 2%, and profits taking a hit.
To overcome these difficult market conditions, ASOS must keep consumers on side. However, a key challenge it currently faces stems from recent changes to its distribution network, which are causing significant stalls to its next day delivery service. With many consumers paying a premium for expedited delivery, it is the responsibility of the retailer to alert consumers signed up for that plan and to allow them to alter their delivery delegation.
ASOS is known for its quick deliveries, so if that has to change as it scales, it will have to rebrand or adjust expectations so that it’s evolving with the times from a distribution perspective, just as it has always done from an assortment perspective.