On Monday the 1st of February, it was announced
that Asos acquired the high-street
retailer TopShop. This was possible because of its increase in business last
year. In 2020, its sales grew by more than 10% every quarter. This led to more
profit which means that it was able to pay $400 million for the acquisition in
cash.
This move is part of the fast-fashion retailer’s goal to
maintain the growth that it experienced in 2020 on an international scale. The
purchase of TopShop makes sense since
it has a strong presence outside of the UK. Indeed, half of its sales are from
other countries, mainly the U.S. and Germany. Even if its previous parent
company Arcadia had found itself in troubled waters, its clothing items
were still quite popular among customers. A representative from Asos advanced
that sales of Topshop products, which have been sold on the former firm’s online
store last year, grew by 41% in the first quarter of Asos’ fiscal 2021.
What are the future plans now? Asos
wishes to turn TopShop into a primarily online brand, to use its items to help
fill out its own catalogue and bring new customers who are going to be
attracted by the brand name.
Asos purchased TopShop © Royalty-free image
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