How could the decline of high street retail affect ASOS?
ASOS may benefit from the ongoing shift of consumers to online fashion shopping. The decline of physical high street stores, such as those in Peterborough, is being accelerated by ultra-fast-fashion brands like Shein. This market shift is reflected in rising online sales, which accounted for 27.3% of all retail sales in August this year, up from 18.1% in August 2019. As consumers increasingly prefer online shopping for convenience and price, the demand for established online retailers like ASOS is likely to increase. However, ASOS must navigate the competitive landscape, particularly regarding returns policies, as some brands, including ASOS, have begun charging fees for frequent returns.
- Effect
- Mild positive
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- When
- Over the long term
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- Gone quiet
How it reaches ASOS
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Primark is launching a home delivery service across Great Britain, following years of only offering click-and-collect or in-store shopping. The retailer purchased a warehouse in Sheffield to facilitate shipping. Analysts note that Primark is facing significant challenges from ultra-fast-fashion brands such as Shein.
The full event1independent outlet -
The rise of online shopping, which accounted for 27.3% of all retail sales in August this year, reinforces the market viability of online fashion retailers. This trend is evident as even traditional high street players, like Primark, are launching home delivery services to compete with online sales.
1 report connects these two. Brind only summarizes; follow a link to read the reporting itself.
- bbc.co.uk Oct 15
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British online fashion and beauty retailer
Everything about ASOS
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The facts so far
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- Online accounted for 27.3% of all retail sales in August this year, up from 18.1% in August 2019.bbc.co.uk
- Primark is planning to launch a home delivery service in Britain after buying a warehouse in Sheffield.bbc.co.uk
- Some brands, like ASOS, have started charging a fee if customers make frequent returns.bbc.co.uk
Why it matters
The shift away from physical retail represents a fundamental change in consumer habits, driven by the convenience and pricing offered by online platforms. For ASOS, this market trend means increased potential demand and market share, provided it can maintain a competitive edge against both ultra-fast-fashion rivals and traditional high street stores that are adapting to online sales.
This trend is not isolated to Peterborough; it reflects a broader national decline in the High Street. Retail analysts note that online sales bring scale, forcing all retailers to balance the need for competitive pricing with the high costs associated with managing returns, a critical factor in the online shopping experience.
What we don't know yet
- How will regulatory changes affect the cost of returns for online retailers?
- How will ASOS respond to the aggressive low-cost pricing strategies of ultra-fast-fashion competitors?
What would change this answer
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Reporting
- bbc.co.ukOct 15
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