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Daily Mirror
Daily Mirror
Business
Sam Barker

ASOS planning to open shop on the high street to sell clothes at a discount

Online clothes store ASOS could soon open a pop-up store that sells items cheaper than its website.

ASOS is considering opening a "temporary, pop up outlet", sources close to the firm said.

The pop-up outlet would sell out-of-season clothes at a discount.

It is understood there are no plans to open permanent physical store.

Earlier today ASOS announced it had made a large loss as its customers spend less amid the cost of living crisis.

The firm made a loss of nearly £32million in the year to August, compared with a profit of £177million last year.

The firm expects shoppers to cut back further this year as living costs soar.

ASOS owns fashion brands Topshop and Topman.

The firm said it was facing "an incredibly challenging economic environment".

It also expects to see a "decline in the apparel market over the next 12 months" but "remains confident in its ability to take share against that backdrop".

ASOS said it will make another loss in the next six months - partly because it will need to slash prices to shift stock.

In June ASOS warned that a cutback in spending by shoppers amid the cost-of-living crisis would dent its profits.

The group slashed its outlook for sales and profits after seeing a sharp rise in order returns, as customers reined in spending in the face of rocketing inflation.

UK inflation has climbed to above 10% for the second time this year as households continue to feel the squeeze from the cost of living crisis.

Consumer price index (CPI) inflation hit 10.1% in the 12 months to September, latest figures from the Office for National Statistics (ONS) show.

It means inflation is once again in double figures and is up from the 9.9% recorded the month before.

Inflation had reached 10.1% in the 12 months to July - so the new level for September matches this.

The last time CPI - which is used to illustrate how prices have risen over time - was this high was 40 years ago, in 1982.

ONS data shows the price of food and energy were the largest contributors for the jump in inflation.

Food and non-alcoholic beverage prices rose by 14.5% in the 12 months to September 2022.

But the price of fuel had fallen after hitting record highs earlier this year, according to the ONS.

Petrol fell by 8.7 pence per litre to 166.5p, while diesel prices fell by 5.0p to 181.6p per litre - although motoring groups say prices are rising again this month.

Households are also facing political and financial uncertainty in the wake of the disastrous Mini-Budget, which saw Kwasi Kwarteng sacked as Chancellor and replaced with Jeremy Hunt.

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