Asos seeks discounts from suppliers
Asos has written to its apparel and accessories suppliers asking for a discount of three per cent on the prices it had agreed. This would apply to all invoices for deiveries made after 1st September and comes as the online retailer works to improve its profitability having issued two profit warnings. Much as expected suppliers are not best impressed but Asos has emphasised the investments it has made in the US and Germany to improve efficiency and which, it says, will facilitate significant growth in sales which will benefit all of its suppliers.
Asos shares have fallen by 62 per cent over the past year. Commentators are saying that whereas competitor Boohoo has always been focused on achieving the highest of margins, Asos has fallen behind and needs to work harder to bring its business back into shape.