This month, British online fashion giant Asos marked its physical retail debut in the US with a pop-up shop in New York City’s fashion-savvy neighborhood of Soho. The pop-up, dubbed “Summer, Styled by Asos”, was located at 120 Wooster Street and ran from June 13-22. Walking into the shop, customers encountered an environment that echoed Asos’ online shopping experience. The offering included an assortment of select partner brands and Asos-owned brands, like its premium line Arrage,
rrage, which were organized by distinct occasion edits, such as ‘Euro summer’, ‘party vibes’, ‘occasionwear’ and ‘capsule wardrobe’.
This offered customers an easy way to build complete looks across clothing, shoes and accessories, organized by the vibe, moment, or mood they were seeking.
As GlobalData’s MD, Neil Saunders, pointed out to Inside Retail, Asos’ physical pop-up was “in essence, a marketing effort.”
“That’s important for an online retailer as maintaining visibility with consumers is difficult, and there are still a lot of US fashion shoppers for whom Asos is not on the radar,” Saunders said.
Since launching onto the retail scene in London in 2000, Asos has built out a user base of 20 million active customers located across 200 countries, approximately 2.6 million of whom are based in the US, making it a prime area of focus for the retailer.
Sean Trend, Asos’ managing director, has stated the “US is a hugely important market for us” and that the retailer is focused on building long-term consideration and loyalty with its North American consumer base.
As Trend told Forbes, “With any pop-up, our aim goes beyond short-term awareness. We’re focused on building long-term consideration and loyalty. We want customers to walk away from the experience with a clear understanding of who Asos is and why they’ll want to come back.”
What’s next for Asos?
The brand’s New York City pop-up is just the first in a planned series of physical activations in the US, reflecting Asos’ interest in leveraging IRL experiences to complement its strong online presence.
In addition to the pop-up that just took place in Soho, an Asos shopping suite will be coming to the boutique hotel The Surf Lodge in the Hamptons over Fourth of July weekend.
While the company experienced success with its first pop-up in the UK back in 2023 and its more recent pop-up in New York this month, the temporary shops are more of a trial experiment than a research initiative for the time being.
Trend stated, “Right now, this is a test-and-learn moment. We’re focused on making this first activation a success and exploring how we might bring similar experiences to other US cities. While permanent retail isn’t the immediate plan, if the response is strong, we would love to take the concept to other cities, and we may even invite our customers to help decide where we go next.”
Retail experts weigh in
CI&T’s global director of retail strategy, Melissa Minkow, described Asos’ recent US move as “a brilliant strategy”.
“It means the retailer doesn’t have to put forth a massive initial investment towards brick-and-mortar but can still pilot the concept and glean information as to what will resonate if and when they transition to a permanent physical presence.”
Minkow pointed to how Asos merchandised the pop-up by style concept, the same way its customers shop, and included QR codes, which enabled shoppers to order out-of-stock items, as effective examples of how online brands can blend online and brick-and-mortar.
“They can learn more about their audience before they enter a specific market, while also being able to easily control their positioning as they do so,” she added. “The one-off footprint means they could roll it out in the pricey SoHo neighborhood and get extremely creative.”
Seconding Minkow’s thoughts, Retail Strategy Group’s Liza Amlani commented, “Asos is borrowing from Shein’s playbook with a test-and-react model, launching small product drops to gauge demand before scaling. Pop-up stores offer a smart way to build brand awareness and connect with Gen Z and Millennials who value in-person experiences. It’s a chance to refine the assortment and better understand the U.S. customer.”
“I’d love to see ASOS double down on this strategy across key global markets,” Amlani added.
However, GlobalData’s MD, Neil Saunders, said there are also some risks to Asos’ US expansion strategy.
“I do not see the pop-ups as a route to opening many permanent locations, mainly because this is not Asos’ business model and it would be a very expensive thing to scale,” he said. “The list of failures of UK retailers trying to enter the physical US market is extremely long.”
A short list of UK-based retailers that tried, and failed, to enter the physical US market includes Tesco, Marks & Spencer and more recently, The Body Shop.
“The problem for Asos in the US is also that the market is extremely competitive and oversupplied. It is not exactly clear how Asos is differentiating or adding,” Saunders observed.
The GlobalData executive also pointed out that the brand has pulled back from the US with its warehouse in Atlanta being shut this year, “which has prolonged delivery times and added to costs with the introduction of tariffs.”
However, Asos isn’t the only British retail business hoping to tap into the US consumer market.
Just this May, British activewear brand Gymshark opened its first physical pop-up store in Manhattan’s West Village.
Meanwhile, after a series of temporary pop-ups, the London-born fashion label Never Fully Dressed opened its first permanent US store in New York City’s Soho in June 2023. Since then, it has expanded with another store in Los Angeles on Melrose Avenue and retail partnerships with players like Revolve.
For now, Saunders theorized that Asos, like Never Fully Dressed, will continue to build on its partnerships with US retailers, such as its current one with Nordstrom, rather than opening its own permanent shops.
However, it seems only a matter of time before a British retailer opens a permanent location in New York City or another major US city.