Yes it’s true. Phillip Green, the billionaire owner of the Arcadia Group, which controls British clothing chains including Miss Selfridge, Wallis and Topshop recently announced plans to invest $100 million in Topshop’s first three
stand-alone stores in the U.S.–including a 70,000-sq.-ft. flagship in
New York City–next spring.
According to Time.com, U.S. women will no longer need to fly to London or go online to find scraps of Kate Moss’ collection. Topshop’s U.S. adventure is the latest
charge for growth among fast-fashion retailers, which specialize in
constantly updated collections of cool clothing at prices so low the
clothes are disposable.
Topshop is smart to take advantage of the hype and demand fueled by Barneys chaos when they sold out of its special Topshop collection of Moss’s striped blazers, skinny jeans and hot pants in four hours. Even mannequins were stripped bare.
Topshop reportedly made around $200 million in pretax profits last year on revenues of approximately $1.14 billion. The chain was not always that successful, however. In the 90’s it had a reputation for being tacky and low-budget. Topshop’s top brass made the conscious decision to stop competing just on price and create a fashion authority.Funneling new fashions into stores even faster than before also became a central part of Topshop’s revival. While traditional clothing retailers might take six weeks to get a design to sales floors, Topshop’s delivering new items to its outlets usually just two weeks after suppliers have received the order.
Don’t expect H&M pricing though. Topshop charges on average, three times more the same items. It’s all about supply and demand. Purely economics.
Read the full article here: "How Topshop Changed Fashion" by Adam Smith