Asos is to close its Staffordshire fulfilment centre in an effort to cut costs.
The online retailer opened the Lichfield warehouse two years ago, and has spent £90m making it fully automated.
The announcement came as Asos revealed that its pretax losses had widened in the year to September to £297m from £31.9m previously, while its sales had declined by 10% to £3.5bn.
Asos said its new commercial model required 30% less stock, meaning it could “simply mothball” facilities it no longer needed.
Asos expects the closure to save about £20m a year, and will give the company the opportunity to sell the site or reopen it in future if it is needed.