Going slow on fast fashion Troubles at Asos could be sign of sector's demise

Once the nemesis of the high street, valued at more than £5bn, the online clothing retailer Asos has slumped in value as it faces difficulties that could signal the demise of fast fashion.

- Sarah Butler

The London-based online retailer dropped out of the FTSE 250 with a whimper this week, valued at about £320m.

Four years ago Asos, and fellow online fast fashion retailer Boohoo, were booming as the high street suffered from pandemic lockdowns and housebound shoppers had cash to spare for slouchy leisurewear.

They thought shoppers had been permanently converted to online shopping, and stocked up accordingly, only for Asos to find itself lumbered with a £1bn stock hangover as, post-pandemic, young and old alike once again enjoyed the freedom to try on clothes and stalk the high street.

By the end of 2021, Nick Beighton resigned as chief executive with profits headed downwards, and the new boss, José Antonio Ramos Calamonte, has yet to halt the decline.

Pippa Stephens, a senior analyst at GlobalData, says the brand, which celebrated its 25th birthday this year, is struggling to mature with its customers or win over a new generation: "Its styles are often too young for the millennial shoppers that grew up with it, while still not attracting Gen Z."

The same might be said of Boohoo. Less than a decade ago Boohoo and its sister brand Pretty Little Thing were behind splashy events in the US featuring the Kardashians or the model Jordyn Woods. Today, Pretty Little Thing is up for sale and Boohoo has renamed its group Debenhams, seemingly focused on chasing middle-aged shoppers by remaking the department store online.