Asos’ Australian honeymoon is officially over. As The Sydney Morning Herald reports, the UK retailer is struggling against domestic retailers like Sportsgirl and Portmans, even with its extensive range of affordable fashion for both men and women.
Asos’ woes are thanks in no small part to the Australian dollar’s 5.3 per cent fall over the last 12 months. Price rises of around 20 per cent since launch and seemingly long delivery times of five to seven days can’t help matters, though, especially when some Aussie retailers can get goodies to their customers’ doorsteps on the very same day.
Asos shares have fallen more than 60 per cent in six months, losing 10 per cent just this Tuesday after revealing a five per cent decrease in international sales in the last three months. Weak Australian sales reportedly dragged the stats down.
It’s an unfortunate circumstance for Asos, which launched an Australian website and set up an office in Sydney due to its significant customer base in our country. But things have changed, and even gone backwards for the online giant.
To try and win our love back, Asos plans to cut prices in Australia and offer free returns to counter the downturn in sales.