Asos added £158m to GDP of Yorkshire, says report

Asos said that its GXO Logistics-operated Great Houghton fulfilment centre is the largest single private employer in the Barnsley metropolitan region.

The retailer has also announced plans to hire an additional 25,000 people across the UK within the next four years and said that it is set to boost UK economy by £3.8bn.

Asos has released its first-ever economic impact report, with new analysis highlighting the scale of its contribution to the UK economy and society and its impact at a local level in Yorkshire.

Asos’ total economic impact in the UK grew to £1.8bn in 2019-20, providing what it described as vital support to UK GDP at the height of the pandemic.

The firm supported more than 31,000 jobs across the UK in 2019-20. It directly employed over 3,600 employees, with every direct Asos employee supporting 7.7 jobs elsewhere in the country, including within its own supply chain.

Asos generated UK tax revenues of £825m from its economic activity in 2019-20, an increase of 2.2 per cent from 2018-19.

The research was conducted by Oxford Economics to mark Asos’ 21st birthday

The firm has plans to reach £7bn turnover in the next three to four years, which will boost its impact in the UK, with GDP contribution estimated by Oxford Economics to increase by £2bn to £3.8bn.

If 25,000 new jobs are created off the back of this additional GDP contribution, it would bring the total number of jobs supported by Asos in the UK to around 60,000.

Mat Dunn, chief operating officer at Asos, said: “Since Asos began over two decades ago, we’ve grown from a tech start-up with just a handful of employees to become a truly global business, directly employing over 3,000 people.

"As we’ve grown in size and scale our economic and social impact in the UK has also dramatically changed, which is reflected in this new report from Oxford Economics.

“We’re incredibly proud of the positive impact Asos has on the UK’s society and economy – this is testament to the skill, dedication, and hard work of the Asos team. As we continue our journey to reach £7bn of annual revenue, we’re looking forward to seeing how Asos’ contribution to the UK will further grow.”

Asos spends over £800m with UK suppliers, with 25 per cent of its expenditure spent in 40 of the most deprived English local authority areas and 21 per cent in areas allocated to the highest priority group for the Levelling Up Fund.

The firm said that Asos Marketplace supports UK SMEs by providing a platform to grow their fashion retail businesses. There are close to 1,400 global sellers currently using Asos Marketplace from 55 countries, processing 200,000 orders per year.

Asos currently employs 187 apprentices, equivalent to 59 apprentices per 1,000 employees, 40 per cent higher than the industry average.

Pete Collings, director of economic impact consulting at Oxford Economics, said: “Our research demonstrates the significant contribution that a large and successful British company like Asos can make to the economy, especially the jobs market and the UK’s public finances, as the UK recovers from the deepest economic recession in living memory.

"Asos provides crucial support for the UK economy across its supply chain and in all regions of the economy, including levelling up priority areas.”