Are you buying a new set of clothes? Thursday’s earnings from ASOS, the online retailers showed first half profits increased 253% year on year.
What does this mean?
ASOS has nearly 25 million customers. Many of whom have been stuck at home and have bought more gym wear and ‘less fitted items’, like joggers and hoodies which have resulted in fewer returns. Fewer returns means less cash back to the customer.
They are expecting as we approach the end of lockdown to see an increase in demand for new ‘going-out’ clothes. However, longer term as the high-street opens up again, ASOS expects to see a small reduction in online-demand. However, spending habits have fundamentally shifted and online clothes shopping has become a more natural habit during the last year.
This change to online shopping has both helped and been helped by the changing role of the high street. People shop more online, which forces shops to close, which then-in turn forces more people to shop online! A terrible death spiral for many high-street brands, with many well-known brands closing all their stores and becoming part of the online giants.
Why should I care?
The bigger picture: Technology continues to change our society and environment.
The pandemic has sped up our digitisation. The high-street was under-pressure before this crisis but over the last year with shops being forced to close, online businesses have flourished. The move online has been a well-known and well-flagged evolution that has been hurried along by the pandemic with a lasting hole on the high-street.
For you personally: Easy and convenient in a new shaped world.
With ASOS you can choose from a huge selection and get it delivered to your door the next day from anywhere with an internet connection. Amazing! On the flip side, shops are closing and being left unused, scaring our historic town-centres and high streets. All-the while house prices continue to move higher even when we have more space? That doesn’t make sense.
