Asos strikes deal with Nordstrom to sell Topshop in US stores

  • 7/12/2021
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The online fashion retailer Asos has struck a deal with the US department store chain Nordstrom that will put Topshop clothing back in brick and mortar stores. Nordstrom is taking a minority stake in the Topshop, Topman, Miss Selfridge and activewear HIIT brands – which Asos bought in March after the collapse of Sir Philip Green’s Arcadia empire – for an undisclosed sum, as part of a joint venture announced on Monday. Nordstrom will sell the brands on its websites and in its 350 stores. It will also allow shoppers to collect and send back Asos products at its stores from this autumn. The companies are also discussing a further collaboration under which Nordstrom will sell a small number of other Asos own labels, such as Asos Design, As You and Collusion, online and in stores in the US. “Partnering with Nordstrom will support our US strategy, allowing us to offer that to even more 20-somethings in North America,” the Asos chief executive, Nick Beighton, said. Nordstrom operates across the US and Canada, and attracts nearly 2bn annual visits to its website each year. The company had a longstanding history with Topshop, prior to Arcadia’s collapse, having sold its clothes in the US from 2012. However, this will be the first time that Asos-owned clothing hits the high street. Asos acquired Topshop, alongside some of Arcadia’s other leading brands, including Miss Selfridge, out of administration in a £330m deal in March. Arcadia collapsed in November 2020, following years of poor trading and high costs that were exacerbated by the pandemic. Analysts said the tie-up would help Asos attract new shoppers in the US, where it first launched just over a decade ago. A step up in expansion over the Atlantic could help maintain growth in the year ahead. Asos sales boomed when shoppers had little choice but to buy online, as high street stores around the world were closed for many months in an effort to control the Covid-19 pandemic. Now online specialists are looking to not only hold on to those new customers, but find new paths for growth. “The mission for Asos is to drive US awareness, customer recruitment and penetration, which should be served well by this tie-up,” said John Stevenson, an analyst at Peel Hunt. The deal might also be seen as a test bed for similar partnerships in the UK or elsewhere as department stores seek out exciting brands to entice shoppers back in. Like many other department stores, Nordstrom has suffered a tough few years as it faces increasing competition from online sellers, which have partly replaced their role in presenting a variety of brands in one place. Last year the retailer closed 16 full-line stores and cut costs as the pandemic ramped up pressure on high street operators. “We’re excited about offering the Asos brands to our customers and we know we can help further amplify the recognition of the already popular Topshop and Topman brands,” said the Nordstrom president and chief brand officer, Pete Nordstrom.

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