Conservative Nordstrom To Sell Trendy Topshop Fashions Brita

Conservative Nordstrom To Sell Trendy Topshop Fashions British Chain

Conservative Nordstrom to sell trendy Topshop fashions; British chain to introduce its clothing at 14 stores in U.S. in September International Herald Tribune Byline: STEPHANIE CLIFFORD NEW YORK -- Nordstrom, the conservative Seattle department store chain, is bringing in Topshop, the British fast-fashion chain with rock 'n' roll flair. Topshop, along with the men's brand Topman, will be introduced in Nordstrom in September and sold through Nordstrom.com, the companies said Thursday. Topshop, which incorporates trends from the runway and from street fashion into its clothing in a matter of weeks, will add some speed to Nordstrom, which has so far lacked such a quick-turnaround brand.

Department stores want to bring in young shoppers, and partnerships like this is a popular way to do it. J.C. Penney has carried clothes from the fast-fashion brand Mango, under its MNG by Mango line, for a couple of years. On Tuesday, Neiman Marcus and Target announced they would jointly be carrying Christmastime collections from 24 designers including Carolina Herrera and Derek Lam. Nordstrom will add Topshop to 14 of its 231 stores in September.

The company said the 14 stores covered a range of geographies, sizes and shopper demographics, so Nordstrom could get a sense of what worked where; from there, the plan is to roll out Topshop and Topman to most of its stores. "Fast fashion implies cheap, and that's not what we're after," said Pete Nordstrom, president of merchandising for Nordstrom. "It wasn't about how we sell a bunch of really cheap T-shirts. It's about how we deliver credible new fashion to the customer." The Nordstrom offering will be a smaller selection of what is also available at Topshop proper, though some styles and patterns will be exclusive to Nordstrom. Kate Phelan, Topshop's creative director, showed off some fall clothing that Nordstrom will be able to pick from, like a women's leather jacket with faux-shearling trim and buckles at the neck, a men's peacoat in a Navajo pattern, and a women's cable-knit sweater in ombre gray.

Nordstrom will also carry Topshop and Topman accessories, including shoes, bags, makeup and grooming products. Ms. Phelan said that although she expected the Nordstrom shoppers to be more conservative, Topshop would still offer a wide range of styles for them. "We make them feel it's very easy to understand how to mix a combat jacket with a lace skirt," she said. The merchandise will be delivered weekly, which, Mr. Green said, will bring customers into Nordstrom stores frequently. "That speed is appealing," Mr. Nordstrom said. The department store is allocating about 2,500 square feet, or 230 square meters, for the women's Topshop merchandise, and 1,500 square feet for the men's. Mr. Nordstrom said the mannequins and signs would be similar to those in a Topshop store, though Nordstrom's would not set off the merchandise with walls. While Topshops usually blare music, Nordstrom is known for its tinkling pianos. Mr. Nordstrom said that, at least for now, "it's going to live amongst what we do," meaning a D.J. probably won't be setting up a station in the Topshop section anytime soon. Topshop is not sold at any U.S. department stores, though it is available in Canada at The Bay.

At its own stores, its U.S. division is a tiny part of the business. Topshop has three stores in America, and plans to open a fourth in Los Angeles in spring 2013. It has 319 stores in Britain and about 140 elsewhere; the non-U.S. stores are largely franchised, though the U.S. stores are wholly owned. The parent company's business has recently slipped, though, as demand in Britain has lessened. Arcadia Group, Topshop's parent company, which also owns several other retail brands, reported in November that its annual profit had fallen 38 percent and sales at stores open at least a year in Britain fell 1.8 percent.

Mr. Green said Thursday that the U.S. business was healthy, and that in a five-year period, Topshop wanted a $1 billion business in America. Currently, he said, the New York store, Topshop's oldest in the United States—opened in 2009—has sales of between $40 and $50 million. He said the Nordstrom deal does not affect Topshop's plans to open standalone stores in the United States, with new outlets under consideration in New York and Miami. Sales in the New York store in the first six months of this year rose 20 percent over a year earlier, he said.

He said he expected the Nordstrom shops to help him figure out what to carry at other U.S. locations. "Obviously, there's places in America we've never been — we need an editor to give us a little bit of direction," Mr. Green said. Popping a piece of gum into his mouth from a tiny plastic bag filled with them, Mr. Green said that Topshop sold "unusual units of a style," which would help Nordstrom with volume. "The units are crazy," he said. Still, he said the business was swinging heavily toward fashion, rather than plain T-shirts. "What I call basics, nobody wants to be in that business anymore; we used to sell one million T-shirt vests," he said, using the British term for a tank top, "in a season, and now it's 150,000."

The Topshop-Nordstrom courtship started when Pete Nordstrom got Mr. Green's phone number from his brother, and placed a call in late February to see if he were interested in a deal. Mr. Green said he had been approached by a number of retailers about adding Topshop merchandise, but he said he was not interested in being in a mass-market store — Topshop rarely discounts — and he did not want to be in a store where he'd be competing with other quick-turnaround brands. Mr. Green was in Las Vegas when he got Mr. Nordstrom's call, preparing for the March opening of the Topshop store there. There was a Nordstrom in the same mall where Topshop was opening, and Mr. Green told Mr. Nordstrom he'd call him back. He bustled down to the Nordstrom, where he checked out the merchandise, then dragged the general manager and men's and women's merchandise directors back to Topshop so they could see what his brand was about. "I said, now you can call your boss and tell him if it's any good," Mr. Green said.

Mr. Nordstrom flew down from Seattle soon after to meet with Mr. Green in Las Vegas. They toured each other's stores, then sat down over tea and cheesecake at a Nordstrom cafe to make a deal. By STEPHANIE CLIFFORD Full Text: Source Citation: Clifford, Stephanie. "Conservative Nordstrom to sell trendy Topshop fashions; British chain to introduce its clothing at 14 stores in U.S. in September." International Herald Tribune 13 July 2012. Business Insights: Global. Web. 20 Aug. 2020. URL Document Number: GALE|A

Paper For Above instruction

The partnership between Nordstrom and Topshop signifies a strategic move by a traditionally conservative department store to revamp its fashion offerings by incorporating fast-fashion trends that appeal to a younger demographic. This collaboration exemplifies how retail giants adapt to evolving consumer preferences and competitive pressures within the fashion retail industry. An examination of the motivations, strategic implications, and potential outcomes of this alliance reveals broader insights into modern retail practices and market dynamics.

Introduction

Nordstrom has long been characterized as a conservative, high-end department store in the United States, known for quality merchandise and sophisticated shopping experiences. However, in recent years, the retail industry has witnessed a shift towards fast fashion, driven by younger consumers seeking trendy, affordable clothing that is frequently updated. Recognizing the need to attract a more youthful clientele, Nordstrom’s decision to partner with Topshop—a British fast-fashion retailer renowned for rapid trend turnover—illustrates a strategic adaptation to market trends. This alliance aims to introduce a curated, smaller-scale Topshop collection into select Nordstrom stores, gradually expanding based on performance.

Context and Strategic Rationale

Fast fashion, typified by brands like Topshop, revolves around rapid production cycles, affordable pricing, and trend-driven merchandise that responds swiftly to runway fashions and street style. By partnering with Topshop, Nordstrom seeks to bridge the gap between its traditional offerings and the vibrant, youth-oriented fast-fashion segment. This is part of a broader trend among department stores, such as Neiman Marcus, Target, and J.C. Penney, to incorporate trendsetting brands that engage younger shoppers and increase foot traffic and sales.

The strategic rationale behind Nordstrom's collaboration includes diversifying its product assortment, appealing to a new demographic segment, and staying competitive amid the rise of online and fast-paced fashion retailers. Also, by limiting the initial rollout to 14 stores across diverse geographic and demographic profiles, Nordstrom intends to test market acceptance and refine its approach before broader expansion.

Implementation and Product Offering

The Topshop and Topman brands will be integrated into Nordstrom stores as a mini boutique within selected locations, occupying approximately 2,500 square feet for women's merchandise and 1,500 square feet for men's. The presentation will mirror Topshop's distinctive style but adapted within Nordstrom’s more subdued aesthetic, avoiding the typical loud music and "store within a store" wall separations (Clifford, 2012). Merchandise will include accessories like shoes, bags, makeup, and grooming products, alongside apparel that emphasizes fast turnover through weekly shipments.

Topshop's creative director, Kate Phelan, emphasizes that despite expectations of a more conservative customer base, Nordstrom will still offer a broad ranging product line, with some exclusive styles unique to Nordstrom. The product assortment includes fall clothing such as leather jackets, Navajo-patterned peacoats, and ombré gray cable-knit sweaters, reflecting Topshop’s trend-centric approach (Clifford, 2012).

Expected Outcomes and Challenges

The expected benefit for Nordstrom involves attracting younger shoppers who are currently underserved by its traditional offerings. The frequent delivery and curated styles aim to stimulate repeat visits and foster brand loyalty among a new demographic. For Topshop, the partnership offers a valuable avenue for U.S. expansion without the immediate need for standalone stores, which are part of its long-term growth strategy (Green, 2012).

Nonetheless, challenges include balancing the brand’s fast-fashion identity with Nordstrom’s upscale, conservative brand image. There is also the risk of misjudging customer preferences, as Nordstrom's clientele may be less receptive to extremely trendy, low-cost fashion. Furthermore, the rapid pace of TOPSHOP's weekly shipments, while appealing to fashion-conscious consumers, could impose logistical and inventory management challenges on Nordstrom (Green, 2012).

Market Impact and Future Prospects

This collaboration exemplifies a broader retail strategy of integrating fast fashion to attract millennials and Generation Z consumers, who prioritize affordability and trendiness (Fitch, 2013). The partnership allows Nordstrom to diversify its product mix and innovate within its traditional retail model without alienating its core clientele. Success could lead to further expansion of Topshop across more stores and possibly influence Nordstrom's overall product strategy, emphasizing more rapid inventory turnover and trend responsiveness.

Topshop’s U.S. expansion, although initially modest, hints at significant future potential. Its parent company, Arcadia Group, plans to open standalone stores in key markets, which could leverage the insights gained through Nordstrom collaborations (Green, 20112). Overall, this partnership symbolizes an industry shift toward the integration of fast fashion within premium retail spaces, adapting to changing consumer values and technological advancements in supply chain responsiveness.

Conclusion

The Nordstrom-Topshop collaboration demonstrates a strategic response to the shifting landscape of fashion retail, blending the high-end, conservative stature of Nordstrom with the quick-turnaround, trend-driven appeal of Topshop. While challenges remain, notably in balancing brand images and operational complexities, the partnership offers a promising avenue for attracting new customer segments and staying competitive. Its success could serve as a blueprint for other traditional retailers seeking to incorporate fast-fashion elements into their offerings, ensuring relevance in an evolving market.

References

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