"Four years ago Asos, and its fellow online fast fashion purveyor Boohoo, were booming as the high street suffered from Covid pandemic lockdowns, and largely housebound shoppers had cash to spare for slouchy leisurewear. They thought shoppers had been permanently converted to online shopping, and stocked up accordingly, only for Asos to find itself lumbered with a 1bn stock hangover as, post-pandemic, young and old alike once again enjoyed the freedom to try on clothes and stalk the high street."
"By the end of 2021 Nick Beighton resigned as chief executive with profits headed downwards and the new boss, Jose Antonio Ramos Calamonte, has yet to stem the decline. Pippa Stephens, a senior analyst at GlobalData, says the brand, which celebrated its 25th anniversary this year, is struggling to mature with its customers or win over a new generation: Its styles are often too young for the millennial shoppers that grew up with it, while still not attracting Gen Z consumers."
"Less than a decade ago, Boohoo and its sister brand Pretty Little Thing were behind splashy events in the US featuring the Kardashians or the model Jordyn Woods. Today, Pretty Little Thing is up for sale and Boohoo has renamed its group Debenhams, seemingly focused on chasing middle-aged shoppers by remaking the department store online. John Stevenson, a retail analyst at Peel Hunt, says Debenhams' strategy indicates it has virtually thrown in the towel on fast fashion."
Asos' market value has collapsed from over £5bn to about £320m, dropping out of the FTSE 250. Rapid growth during pandemic lockdowns left a £1bn inventory hangover as shoppers returned to in-person buying. Leadership change followed falling profits, and the brand struggles to retain aging millennials while failing to attract Gen Z. Boohoo and Pretty Little Thing have also shifted strategy: Pretty Little Thing is up for sale and Boohoo rebranded as Debenhams to target middle-aged customers. Retail analysts report a pivot away from fast fashion as margins collapse and price-driven markets weaken.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]