Since its founding in 2000, UK-based fashion and beauty retailer ASOS has become a global e-commerce powerhouse, beloved by millions of stylish twenty-somethings around the world. The brand‘s meteoric rise was fueled by its trendy product selection, inclusive sizing, affordable prices, and a slick online shopping experience. In fiscal year 2021, ASOS recorded revenues of £3.9 billion, shipped over 90 million orders, and served 26.4 million active customers – all without a single physical store.
But in 2021, after over two decades operating exclusively through digital channels, ASOS made the surprising announcement that it would begin selling products in select Nordstrom department stores in the U.S. This unexpected partnership marks a major strategic shift for the company as it dips its toes into brick-and-mortar retail for the first time. As an expert retail analyst and discerning ASOS shopper myself, I‘ll share my perspective on what this development means for the future of ASOS and how it will impact customers.
ASOS‘s Journey from Startup to Global Fashion Force
To understand the significance of ASOS‘s move into physical stores, it‘s helpful to recap the company‘s 20+ year history as a digital disruptor in the fashion industry. ASOS (which stands for "As Seen On Screen") was founded in 2000 by Nick Robertson and Andrew Regan with a simple mission: to make the latest celebrity-inspired fashions accessible to everyone. The company started out selling just copies of items worn by stars on TV and in movies, but quickly expanded into selling multi-brand fashion and its own private label lines for style-savvy young adults.
In the early 2000s, ASOS was a first-mover in bringing fast fashion online, offering thousands of new styles and cheap on-trend items to digital-native shoppers. The brand earned a reputation for inclusivity, gaining fans for using diverse models and extending sizes up to 28. ASOS also innovated with new digital experiences like a try-before-you-buy service, an AI-powered virtual fitting room tool, and a social network for college students.
Over the years, ASOS grew rapidly and internationally by catering to the digitally-inclined fashion shopper. The company now sells over 850 brands in more than 200 global markets, offers an assortment of 70,000 items on its website and app, and has over 3,000 staff across offices in the UK, Europe, U.S. and Australia. A few key growth milestones for ASOS:
- 2001: ASOS.com launches, selling just 100 products
- 2003: ASOS debuts its first own-label collection
- 2007: ASOS ships to 90 countries worldwide
- 2009: Annual sales surpass £165 million
- 2013: ASOS launches free shipping worldwide
- 2015: ASOS opens massive new fulfillment center in Germany
- 2018: ASOS acquires Topshop, Topman and Miss Selfridge brands
- 2019: ASOS trials ‘See My Fit‘ AR tool
- 2020: ASOS app reaches 10M downloads
- 2021: ASOS announces Nordstrom partnership and Floorless Fulfillment Center
The Nordstrom deal marks the start of a new chapter for ASOS as it evolves its retail model and chases further growth. Let‘s dig into the specifics of the partnership and what it signals about ASOS‘s future.
ASOS Meets Nordstrom
In November 2021, ASOS and Nordstrom jointly announced that ASOS products would be available to purchase in 10 select Nordstrom stores as well as on Nordstrom.com and the Nordstrom app, starting with the Holiday season. For the initial launch, Nordstrom would stock a curated selection of about 650 items across ASOS Design, ASOS Edition, ASOS Luxe, and other ASOS labels, with new products rotating in frequently. The assortment spans women‘s and men‘s clothing, shoes, and accessories in straight and plus sizes.
Prices for most ASOS products at Nordstrom range from $20-100, in line with ASOS‘s signature affordability. ASOS is merchandised in branded shop-in-shops inside Nordstrom stores, featuring custom build-outs, mannequins, signage, and visual elements designed in collaboration between the two retailers. The spaces spotlight ASOS‘s fun, colorful, youthful aesthetic and make it easy for shoppers to find the brand.
The 10 Nordstrom locations offering ASOS products at launch are strategically located in major U.S. cities and shopping destinations:
| City | Nordstrom Store Name/Location | Type of Store |
|---|---|---|
| New York, NY | Nordstrom NYC Flagship | Flagship |
| New York, NY | Nordstrom Men‘s Store NYC | Menswear flagship |
| Los Angeles, CA | Nordstrom at The Grove | Flagship |
| Chicago, IL | Nordstrom Michigan Avenue | Flagship |
| Dallas, TX | Nordstrom NorthPark Center | Mall store |
| Bellevue, WA | Nordstrom Bellevue Square | Flagship |
| San Diego, CA | Nordstrom at The Mall UTC | Mall store |
| Scottsdale, AZ | Nordstrom at Fashion Square | Mall store |
| Brea, CA | Nordstrom Brea Mall | Mall store |
| Oak Brook, IL | Nordstrom Oakbrook Center | Mall store |
Specially designed ASOS pop-ups are also open at Nordstrom‘s NYC and LA flagships for a limited time, giving shoppers an immersive branded experience.
So why did these two retailers who were previously only digital partners decide to link up in physical stores too? According to Nordstrom executives, adding ASOS helps them attract younger consumers and strengthens Nordstrom‘s position as a fashion discovery destination. For ASOS, the deal provides a low-risk way to expose the brand to new customers and markets through Nordstrom‘s national footprint.
"We know that our customers are fashion-loving individuals who shop from a variety of brands and retailers. They come to us for our curated and unique product offering, and we‘re excited to launch with Nordstrom as another avenue for customers to discover and engage with our brand in the US."
Nick Beighton, CEO, ASOS
Analyzing ASOS‘s Brick-and-Mortar Strategy
On the surface, ASOS‘s decision to embrace physical retail after 20+ years as an online pure-play is a head-scratcher. The company‘s tremendous success to date has been almost entirely thanks to nailing e-commerce logistics, digital marketing, and online user experience. Why mess with a good thing?
However, looking closer, it‘s clear that ASOS‘s Nordstrom partnership is a savvy way for the company to strategically expand its retail model while still playing to its strengths. A few key benefits of this approach:
-
Nordstrom operates 350+ full-line stores across the U.S. and Canada, providing a big geographic footprint. ASOS gets to piggyback on that real estate and introduce itself to local shoppers.
-
Partnering mitigates risk and investment compared to ASOS opening its own stores right away. ASOS can gauge demand and gather data before making further brick-and-mortar commitments.
-
Nordstrom has robust omnichannel capabilities like buy online, pick-up in store, curbside pickup, and ship-from-store. This creates flexibility in how customers discover and ultimately receive ASOS products.
-
ASOS can leverage Nordstrom‘s established reputation, loyal customer base, and premium store experience rather than starting from scratch.
At the same time, ASOS must be thoughtful about maintaining its brand integrity at Nordstrom and delivering a consistent customer experience across channels. The company will also have less control over merchandising and operations than in its own stores or website.
Interestingly, ASOS is one of a number of digitally-native, direct-to-consumer brands that have recently embraced physical retail as a necessary growth driver. Other notable examples include Warby Parker, Allbirds, Everlane, Casper, Glossier, and even Amazon. While each of these brands is taking a slightly different approach – some with owned-and-operated stores, some with wholesale partnerships, some with pop-ups – the underlying goals are the same:
- Reach customers who prefer to shop in person
- Build awareness in new local markets
- Create immersive brand experiences
- Offer more convenient fulfillment options
- Collect data on customer behavior offline
"There is still a large contingency of customers that want to touch and feel products before they purchase, which can be difficult online, so stores are critical. Almost all of the brands that are growing quickly today are opening stores, including digital innovators like ASOS."
Sucharita Kodali, VP and Principal Analyst, Forrester Research
For now ASOS is downplaying the Nordstrom partnership as a learning opportunity rather than a major strategic shift. But reading between the lines, it‘s clear ASOS has grander ambitions in physical retail and this is likely just a first step. I predict we‘ll see ASOS open its own standalone stores within the next 1-2 years, using insights from Nordstrom to optimize the format. Don‘t be surprised if ASOS also strikes similar wholesale deals with retailers in the UK and other international markets.
Advice for ASOS Shoppers
If you‘re an avid ASOS shopper curious about checking out the brand IRL at your local Nordstrom, here are a few tips to keep in mind:
-
Selection is limited. Nordstrom stores carry at most around 650 ASOS items, a tiny fraction of the 70,000 sold on ASOS.com. Don‘t expect to find the full range, and stock varies by location.
-
The best of ASOS Design. While core items are consistent across Nordstrom doors, many stores merchandise locally relevant pieces like resort wear or outerwear. Overall, the mix leans trendy and colorful to appeal to a young, fashion-forward Nordstrom shopper.
-
Online, in-store exclusives. Some ASOS items at Nordstrom are online exclusives and only available for shipping. Likewise, some pieces will be store exclusives that you can‘t find on Nordstrom.com. Be sure to check both if you have your heart set on something.
-
Promotions and policies differ. Nordstrom sets the prices for ASOS products it sells, and any promotions or discounts come from Nordstrom, not ASOS. That means your ASOS gift cards and promo codes won‘t work at Nordstrom. However, Nordstrom gift cards, sales, and rewards program all apply to ASOS. Returns must also be processed by Nordstrom.
-
Immersive experiences. Several Nordstrom locations feature special ASOS pop-up shops with expanded assortments and branded displays. Look for these in-store activations to get the full ASOS treatment.
-
Sustainable and inclusive. ASOS is committed to reducing its environmental footprint and promoting diversity, which carry through to its presence at Nordstrom. Over 70% of ASOS products sold at Nordstrom contain recycled or sustainable materials. Nordstrom also stocks ASOS‘s full size range from 00-28, making it a destination for fashionable plus-size wardrobes.
Looking Ahead
ASOS‘s first foray into physical retail with Nordstrom is an exciting development for the brand and for shoppers. It provides a chance for more people to experience the ASOS lifestyle in person and discover what makes this online fashion giant so popular. At the same time, it raises interesting questions about how ASOS will evolve its business model going forward and balance digital and physical channels.
As both a retail analyst and loyal ASOS shopper, I‘ll be following this partnership closely and am eager to see what the company does next. The Nordstrom tie-up is an important milestone in ASOS‘s history and sets the stage for a fascinating new chapter ahead. In the meantime, I look forward to visiting my nearest Nordstrom to check out the ASOS products in person. Maybe I‘ll see you there!
