Asos is reviewing the current status of its supplier arrangements

Asos is reviewing the current status of its supplier arrangements

UK fashion e-tailer Asos has requested a cut in prices from suppliers to help offset ongoing investments in the business to drive sales and growth.

The online giant is reviewing the current status of its supplier arrangements after investing heavily over the last few years to boost sales and secure its future growth.

In 2018 Asos said it was accelerating its investment in distribution and logistics. It also increased its capex guidance to between GBP230m and GBP250m for 2018 and 2019, having invested just over GBP95m in the first half of 2018.

just-style understands the retailer has explained its growth ambitions will also benefit suppliers in the longer term, and that despite the move it remains business as usual with its supply base.

The purchasing practices of several UK brands and retailers have been criticised in recent years, with many alleged to be pushing suppliers too hard on price – which can ultimately lead to them cutting corners when it comes to worker health and safety.

At the end of last year, the UK Environmental Audit Committee saw retailers including Boohoo, Asos, Missguided and Primark quizzed on their buying practices and how they were ensuring workers in their supply chains were being compensated fairly and treated correctly.