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Sandra Halliday Published
April 9, 2025
Both ASOS and fashion e-tail peer Boohoo/Debenhams have been planning to close their US distribution centres (DCs) as part of their turnaround drives and it seems there’s no change to their intentions despite the current tariff carnage.
The two companies confirmed their decisions in response to a question from City AM.
The imposition of higher tariffs on goods imported into the US and the closing of tariff-free loopholes for low-cost goods means both companies’ exports to the country will attract duties. That said, even with local DCs, if the items are manufactured in other countries, they would still incur new taxes.
ASOS said in January that it’s closing its Atlanta, Georgia DC in the second half of the year and will serve US consumers from its automated fulfilment centre in Barnsley, Yorkshire, although there will also be a “smaller, more flexible local US site,” it said.
Meanwhile Boohoo/Debenhams had last autumn said it planned to stop fulfilling US orders from its Pennsylvania DC and would move them to its own automated DC in Sheffield, which is also in Yorkshire.
The moves would cut both firms’ costs and allow them to offer the wider variety of products that are available via their UK bases.