Topshop Returns to the High Street
Synopsis
Online retailer Topshop will be making a return to physical stores. The fact Topshop returns to brick and mortar stores is slightly surprising, as its recent financial reports are concerning. Topshop will not open…
Online retailer Topshop will be making a return to physical stores. The fact Topshop returns to brick and mortar stores is slightly surprising, as its recent financial reports are concerning. Topshop will not open its own locations; rather, it will make its products available through partnerships with other retailers. The company announced it already had numerous partnerships signed. It also announced they will launch a new standalone Topshop website in hopes of turning its fortunes around. No stores of its own have currently been announced, but the company has not ruled out that possibility.
Financial Woes
Topshop is owned by fellow online retailer Asos. José Antonio Ramos Calamonte, the chief executive of Asos has highlighted the need for TopShop to become more visually accessible to consumers. Calomonte stated that he aimed to deliver value to consumers in the current uncertain economic climate.
Calomonte’s comments came as the company announced that sales had dropped sharply by 13% to £1.3bn in the six months leading up to 2 March. Meanwhile, pre-tax losses decreased to £241.5m from £270m the previous year, amidst intense competition from rivals like China’s Shein and Temu.
In the US, sales plummeted by 30%, which the company blamed on “market conditions” and efforts to cut unprofitable sales. In the UK, sales declined by 6% due to a decrease in website traffic and orders. However, full-price sales of the company’s own-brand products increased by 9%. It remains to be seen as TopShop returns to physical stores if it can turn the brand's fortunes around.
Sources
The Guardian - Topshop to return to high street with outlets in other retailers’ stores
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