ASOS reportedly delays orders on fears of autumn downturn

By

Nigel TAYLOR

Published
Jul 25, 2022

Balancing supply with demand could become a critical factor in the months ahead as the UK economy struggles. And online fashion retail giant ASOS is said to be delaying some autumn orders due to concerns customers will cut back as the cost-of-living crisis deepens.

Suppliers have told The Mail on Sunday that some stock orders had been cancelled altogether in recent weeks.

While insiders insisted cancellations were “not running at above normal levels at this time” there had been “a few more postponements” the report said. 

However, there is growing concern in the industry that online retailers targeting younger shoppers are under pressure. It pointed to ASOS's profit warning in June that blamed inflation and more shoppers returning items. It warned of “a change in consumer sentiment”. 

However the online retailer also said that its supply chain operation “is functioning well against the backdrop of unprecedented global disruption in our markets”.

It added: “We outlined a new strategy in November last year, which included moves to buy on 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 supplier relationships and will continue to work closely with them”. 

But one supplier said he was concerned stock levels at the firm had become “clogged up” and that cancellations may become more frequent in the coming weeks and months.