Asos said to ask suppliers for 3% discount
By Michele Maatouk
Date: Tuesday 20 Aug 2019
(Sharecast News) - Online fashion retailer Asos has reportedly asked its suppliers for a 3% discount as it looks to cut costs after recent profit warnings.
According to trade magazine Drapers, the retailer has written to suppliers to ask them to accept 3% less on all invoices for stock received from 1 September onwards.
Asos was said to have written in the letter that the discount would \"fuel joint growth\" for it and the brands it stocks.
\"We have recently reviewed the current status of our supplier arrangements, also taking into account the significant investments we have made over the last few years and will continue to make, to lay the foundations for future growth,\" the letter said. \"We have set our sights on becoming one of the few companies with truly global scale in the market and we are confident that we will achieve this.
\"Our future growth aspirations not only benefit us but also benefit you, our valued partner. We hope you will understand this necessary change and on behalf of Asos we would like to thank you for your continued support.\"
Independent retail analyst Nick Bubb said the news was \"disturbing\".
\"This is the sort of shabby behaviour that you normally only see from troubled companies like Arcadia or Debenhams,\" he said.
At 1545 BST, the shares were down 0.3% at 2,323p.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN