Barnsley-based Asos sees sales drop amid delivery and consumer spending woes

The group said UK sales tumbled 8 per cent in the four months to December 31, in stark contrast to high street rivals such as Next that have benefited from shoppers returning to stores over Christmas in the face of Royal Mail strikes and delivery disruption.

The company employs thousands of people at its giant warehouse in Barnsley where all of its products are sent for processing before being sent out for delivery to British customers.

Asos said it is slashing costs to boost its profitability, but confirmed it continues to expect to make a half-year loss.

It revealed further details of its ongoing turnaround plans and aims to drive £300 million of profit and “cost mitigation measures” in the first half, with the group shutting three storage warehouses in the UK, Europe and the US, while it said it is also trimming some of its office space but not closing sites.

It is also axing 35 unprofitable brands as part of the efforts.

The group is hoping the overhaul will “more than offset headwinds” from inflation and rising return rates to drive a “modest improvement in full-year profitability”.

Jose Antonio Ramos Calamonte, chief executive of Asos, said: “We have made good early progress against a number of measures to simplify the business, including repositioning our inventory profile, reviewing our operational model in our top markets and reducing our cost base.

“While there is more to do, I am pleased by the progress made in this period and am confident in the direction we are going.”