Digital Only Retail: Assessing the Necessity of an ASOS Physical Store within Omnichannel Retailing to Drive Brand Equity

Case study published by Bloomsbury Fashion Business Cases.

ASOS is a British online-only multi-brand fashion retailer; founded in 2000, who has catapulted itself into the ranks of leading fashion retailers worldwide, despite lacking a physical store. With revenue of £3.26bn in 2020, 2.7bn platform visits in 2020 and 23.4 million active customers that same year, ASOS is an online-only success story. Even the COVID-19 pandemic did not hinder ASOS’ growth as half-year profits grew 275% in 2021. However, as the effects of the pandemic dissipate, it may be that the absence of stores makes the heart grow fonder for the young audience that ASOS targets. Although this young audience have the highest presence in the digital realm, the same consumers still find value in physical shopping channels, even more so after COVID-19 restrictions, and want retailers to provide engaging real-life experiences.

ASOS has the power to reinvent retail settings, however, the company have not moved into a physical channel yet, only experimenting with a pop-up store in 2019 through payment company Klarna. Due to the omnichannel shift within the retail environment, where digital and physical channels are expected to merge, ASOS may need to address the lack of physical contact consumers have with the brand through a store to keep consumers engaged, and develop its omnichannel strategy and touchpoint consistency. A benefit to ASOS of developing touchpoint consistency is the strengthening of brand equity for its independent own-brands, which is increasingly important in the highly competitive world of mass-market fashion.

This case study assesses the approach that ASOS could take if it were to open a physical store and discusses the merits of an online-only retailer entering the physical space and the types of considerations that have to be made. Specific features of existing stores will be evaluated on their success, and these features can be used by students to guide ASOS in strategizing a new brand touchpoint that reflects the brand’s values and identity. Thereafter, students will debate if an ASOS store is necessary for the retailer.

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