Online fashion retailer ASOS has announced plans to invest around £110 million in IT and logistics over the next two years.
In its final year results today, the company said: “During the next two years, we will significantly increase our investment in our IT and logistics infrastructure to circa £55 million per year to support our future growth plans, including expenditure of £25 million to £30 million on our Barnsley logistics hub during the year to 31 August 2014.”
The retailer announced the new investment after revealing strong profits in its results for the year to 31 August 2013. It said that its success so far was thanks to its investment in technology, logistics, marketing and people.
The company reported a 39 percent increase in revenue to £769.4 million, and a pre-tax profit increase of 23 percent to £54.7 million in the year to 31 August 2013. To “drive future growth”, it increased capital expenditure on its IT infrastructure by £9.7 million compared with last year.
ASOS revealed that its IT fixed asset additions amounted to £21.3 million, from £14.8 million last year.
“The majority of fixed asset additions were to enhance our websites and underlying IT infrastructure to support future growth and create a truly global platform, including the development of our ASOS China operation and Russian website. We also developed our new mechanised despatch sorting process and commenced the extension to our Barnsley fulfilment centre,” ASOS said in its results.
The retailer said that is constantly working on its websites to offer “the most engaging customer experience”, with a particular focus on developing and improving its mobile sites and apps “as these represent an ever-increasing proportion of our traffic and sales”.
In the UK, it upgraded its mobile site in April 2013 and released an upgraded version of its iOS apps and a new Android app this month. Meanwhile in July 2013, Asos launched mobile sites in all markets where it already had local language websites. It aims to launch US versions of its apps in the first half of the next financial year.
“Our next focus will be on developing mobile apps to serve our other strategic markets,” it added.
Meanwhile, ASOS is positive about its outlook.
“Our £1 billion sales target is now firmly in our sights and we have stepped up our investment in people, technology, logistics and marketing to support the significant global potential of the ASOS business,” it said.