ASOS appoints retail guru to senior job

Ms Bostock, who as head of general merchandise at M&S was one of the most powerful women in the British retail industry, will join ASOS in January as executive director, product and trading, reporting to chief executive Nick Robertson.

ASOS declined to comment on the remuneration package she will receive in her new post. She earned nearly £1m a year at M&S, Britain’s biggest clothing retailer.

Her departure from M&S was announced in July, when the group reported its biggest quarterly sales drop for three and a half years. She did not officially leave until October 1.

Her departure followed chief executive Marc Bolland’s plans to bring in Debenhams’ chief Belinda Earl as style director to beef up the group’s fashion range.

Ms Bostock said: “ASOS is a phenomenon and I’m in awe of the story.

“With its unique mix of own label and fashion forward brands delivered online and increasingly through mobile, the potential for ASOS globally is huge.”

The online retailer, which was launched in 2000, has more than five million active customers and annual sales of around £500m.

Ms Bostock has also held senior roles at George, Leeds-based Asda’s clothing range, and fashion retailer Next, the UK’s second biggest clothing retailer after M&S.

ASOS said product director Rob Bready, who is credited with playing a key role in the development of ASOS during his seven years on the board, will leave the company “to pursue fresh challenges”.

Mr Bready sold £2.6m of ASOS shares in July.

ASOS has been linked to Ms Bostock for some time and Freddie George, retail analyst at Seymour Pierce stockbrokers, said the appointment was “perhaps the worst kept secret in retailing”.

He added: “Kate Bostock adds credibility to the business, and will be responsible for further developing the company’s own label ranges but whether she fits in with the unique culture will remain to be seen.”

ASOS targets young women looking to emulate the designer looks of celebrities like Alexa Chung, Tulisa Contostavlos and Kate Moss, and has been expanding overseas as its home market starts to mature.

In its fourth quarter, 65 per cent of sales were made overseas.

ASOS opened a £40m 530,000 sq ft state-of-the-art distribution centre in Barnsley last year, which is shipping several million items a year to places as far afield as Australia and Kazakhstan.

Mr Robertson said Ms Bostock’s appointment will boost the group as it puts in place the structures needed to manage the next phase of its growth.

ASOS is one of the biggest success stories of British retailing in recent times. It is targeting £1bn of annual sales by 2015.

Sanjay Vidyarthi, analyst at Espirito Santo Investment Bank, said he expects Ms Bostock’s appointment to be welcomed by the market.

“It will be interesting to see how the fit works, given the very different culture and customer demographic at ASOS compared with the companies at which Ms Bostock has previously worked,” he said.

Last week, ASOS said Brian McBride, a former managing director of Amazon in the UK, would succeed Waheed Alli as chairman from November 1.

Last month the group said it would meet yearly profit forecasts after maintaining a strong rate of sales growth in its fourth quarter, buoyed by strong trading in the US and Australia.

A potted history

2012: Opened first international offices in Sydney and New York

2011: Opened £40m distribution centre in Barnsley

2010: Launched ASOS Marketplace

2009: Launched Designer Store

2008: Launched ASOS Outlet

2007: Introduced ASOS own label for men

2005: Buncefield Fuel Depot explosion closes business for six weeks

2004: Introduced ASOS own label for women

2004: Maiden profit

2001: ASOS admitted to AIM