Topshop's days are far from over if retailers ASOS and Nordstrom have anything to do with it, thanks to this new collaboration.
Online retailer ASOS and department store Nordstrom are collaborating to appeal to the Gen Z consumer.
In this interesting collaboration between two retailers, the partnership aims to expand the concept of traditional retail and develop a keener interest from younger consumers. ASOS presents itself as the ‘number one destination for fashion-loving 20-somethings,” the brand explained.
The US department store is acquiring a minor stake in the apparel brands that were recently bought out by ASOS – Topshop, Miss Selfridge, HIIT and Topman. ASOS will remain the operational and creative control of the brands, but Nordstrom will have exclusive retail rights across North America. “Bringing the ASOS brands, including Topshop and Topman, to our customers allows us to create newness and excitement,” said Pete Nordstrom, the retailer’s President and Chief Brand Officer.
This collaboration not only will help ‘redefine’ the meaning of department store retailing in the North American market, but it will also gain attraction from the Gen Z consumer. At the time of writing, Nordstrom’s shares are up 19.68 percent year to date.
ASOS is one of the leading online retailers worldwide, with more than 24.9 million active customers. In the six months ending February 28 2021, there was a 24 percent increase in retail sales and a 15 percent uplift in international retail sales.
“The swift integration of the Topshop brands and the impressive early customer engagement is also especially pleasing,” said Nick Beighton, the CEO of ASOS, in February 2021.”Looking ahead, while we are mindful of the short-term uncertainty and potential economic consequences of the continuing pandemic, we are confident in the momentum we have built, and excited about delivering on our ambition of being the number one destination for fashion-loving 20-somethings.”
ASOS acquired the failing four brands in February 2021 for $528.49 million and spent a further $53.73 million for its stock. During the Christmas period of 2020, sales for the brands skyrocketed by 41 percent, with Beighton saying that the retailer was the ‘natural owner’ of Topshop and its counterparts.
“We have been central to driving their recent growth online and, under our ownership, we will develop them further, using our design, marketing, technology, and logistics expertise, and working with key strategic retail partners in the UK and around the world,” said Beighton of the acquisition. “This deal makes perfect sense for us on every level.”
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