Online fashion group Asos has announced it will invest £90 million in a new warehouse in Lichfield, Staffordshire, with a plan to employ 2,000 people at the site over the next three years.

The company in October reported its annual profits had more than quadrupled because of cost-cutting action and as customers returned fewer items amid the pandemic.

The 437,000 square feet, AEW and Allianz Real Estate joint venture warehouse at Fradley Park will open within 12 months and will be fully operational by 2023, Asos said.

Asos chief executive officer Nick Beighton said: “This significant investment in infrastructure and large-scale job creation is a reflection of the confidence ASOS has in its future and the quality of the skills and talent available in this well-placed location.”

Business Secretary Alok Sharma said the firm was a “great British success story” with a “skilled workforce”.

“This job-creating investment in Lichfield is exactly the type of long-term commitment we need from businesses as we build back better from the pandemic,” Mr Sharma added.

Asos reported pre-tax profits of £142.1 million for the year to August 31, up 329% from £33.1 million a year earlier, as sales jumped 19% including 18% growth in the UK.

It shrugged off soaring costs due to the pandemic by making savings across the group, while a trend for customers to buy more carefully and return less also offset plunging demand for “going-out” items.