Nordstrom has reportedly acquired a minority stake in four clothing brands owned by Asos, a U.K.-based online fashion house. However, the financial terms of the agreement are yet to be disclosed.
The consumer base of Topshop, Miss Selfridge, Topman, and HIIT- the activewear label, is mainly comprised of youngsters in their 20s.
Pete Nordstrom, the Chief Brand Officer and President of Nordstrom, supposedly commented that this partnership is an attempt to redefine the working relationships between brands and department store operators. He also added that such partnerships create possibilities for future collaborations with Asos.
While Asos will retain creative and operational control of the Topshop brands, Nordstrom will possess exclusive retail rights for Topman and Topshop across North America.
Mr. Nordstrom apparently said that bringing brands like Topman and Topshop to its consumers enables the company to create excitement and novelty.
Nordstrom has been exclusively distributing Topman and Topshop in the U.S. since 2012. The department store will now be the only physical location for these brands across the world.
Consumers will be able to collect online Asos orders across all Nordstrom Rack and Nordstrom locations starting this fall, as per the companies.
Asos took control of Miss Selfridge, Topshop, HIIT, and Topman in February. The brands were put up for sale after Arcadia Group filed for bankruptcy in 2020. The COVID-19 pandemic resulted in lockdowns throughout 2020, which caused problems for Arcadia as it operated hundreds of physical stores. On the other hand, Asos had a business model which exclusively operated online.
Nordstrom is trying to simultaneously retain its current consumers whilst widening its consumer base. It has an opportunity to do so post the pandemic, as many people are gradually heading back to school and work and will need brand new apparel.
By acquiring these four brands, Nordstrom hopes to reach young shoppers who have greater spending capability.