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ASOS is doubling down on the U.S., where it’s already a hot fashion site for twentysomethings

The company is investing $40 million in a new Atlanta warehouse.

Jason Del Rey has been a business journalist for 15 years and has covered Amazon, Walmart, and the e-commerce industry for the last decade. He was a senior correspondent at Vox.

It’s been just four years since London-based e-commerce company ASOS launched a fashion site dedicated to U.S. shoppers, but it has already built a U.S. business that does around $240 million in annual sales and still growing north of 50 percent to date this fiscal year.

Now, the 17-year-old fast-fashion business is investing $40 million into a new U.S. warehouse that it hopes will help propel its stateside business to new levels.

ASOS has signed a lease for a new distribution center in the Atlanta area that can hold up to 10 million items and support a business of around $750 million annually.

Over the next five years years, the company will likely add another facility to cut down delivery times to U.S. customers and support its West Coast business.

“There’s more investment, more product and more U.S.-centric brands,” ASOS CEO Nick Beighton said in an interview with Recode.

“The next stage of the growth you’ll see is a better customer experience,” he added, calling out reduced delivery speeds as one goal.

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ASOS sells a wide range of affordable fashion items and accessories to young adults, with about 40 percent of sales coming from its own ASOS brand and another 20 percent from exclusive items created by other brands. The company currently has a market cap of about five billion British pounds, or around $6.5 billion.

Currently, 12 percent of its sales come from U.S. shoppers, with New York and Los Angeles as its strongholds; a growing customer base is emerging in and around Austin, Texas, according to Beighton.

The benefits of the new Atlanta facility will start to manifest themselves to U.S. shoppers with the cut-off time for ordering two-day delivery moving back from 3 pm to 6 pm for certain regions.

“We then endeavor to make it later and later and later,” Beighton said. “Peak shopping is between 8 and 10 in the evening.”

Within two years, ASOS plans to ship all goods to U.S. shoppers out of the facility — rather than from across the pond — which should result in more and better shipping options, he added.

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