UK online fashion retailer ASOS has signed an agreement to open a new e-commerce fulfilment centre in Union City, Georgia, to improve sales in the US market.

Operations at the ten-million unit capacity facility are expected to commence late next year.

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The retailer aims to use the warehouse to improve customer proposition by providing more cost-effective, faster and flexible delivery options.

ASOS CEO Nick Beighton said: "This agreement is a major step forward for ASOS in the US and demonstrates the opportunity we believe lies ahead in this key market.

“Our US business delivered 39% constant currency growth in the first six months of the current financial year following sales of £179m in the year ended August 2016.

"This agreement is a major step forward for ASOS in the US and demonstrates the opportunity we believe lies ahead in this key market."

“Our US fulfilment centre will enable us to significantly develop our proposition for our 20-something US customers supporting our continued growth and future ambitions."

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ASOS will develop the fulfilment centre in a phased manner, with an initial planned investment of $40m towards fit-out costs.

The company also has plans to further expand the facility in future.

The agreement is consistent with the targeted geographic growth strategy of the company, which currently has fulfilment centres in the UK, US and Europe.

ASOS sells more than 85,000 branded and own-label products through mobile and web platforms.