Online fashion retailer Asos has reported a big loss as its customers spend less on fashion due to the rising cost of living. The firm saw a loss of nearly £32m in the 12 months to August, compared with a profit of £177m last year. The firm expects shoppers to cut back further this year as living costs soar. Inflation returned to a 40-year high in September as BBC research showed people are feeling increasingly anxious about their finances. Asos, which owns Topshop and Topman, said it was facing "an incredibly challenging economic environment" at the moment. Asos and its rival Boohoo, which were seen as a poster children for the shift to online shopping, benefited during the pandemic as locked-down shoppers splashed out online. But they have struggled as people have returned to stores. Asos said in June that cash-strapped consumers were also returning more items bought online, hitting its profits. The fashion retailer said it now planned to rebuild its once-successful business model, sorting out problems with its supply chain and refreshing its fashion ranges.
