When Asos revealed it had won the battle for the jewel in Arcadia’s crown – Topshop, along with Topman, Miss Selfridge and HIIT activewear – a big question mark was raised over the fate of the retailer’s 214 Oxford Street flagship store.
The landmark store on one of the most famous shopping streets in the UK is currently under the administration of KPMG restructuring specialists and several parties are understood to be interested in taking it on.
Among them is Asos itself. Although it is far from certain it will take that step, it could make sense. While it is true that Asos lacks experience in running a bricks-and-mortar store, there are opportunities for it to really take advantage of what the shop has to offer – without a physical store wagging the online dog.
In the past, Topshop’s Oxford Street store has played host to pop-up events, from the famous Kate Moss launch to a virtual reality waterslide. Even during the pandemic, when stores were reopened, dance music could be heard blasting from its main entrance to entice a crowd of young shoppers.
Asos, with its army of Instagram influencers and TikTok success, could easily tap into that, bringing what it does so well online – aside from fashion – to encourage customers into the store.
From reality TV star collaborations to TikTok takeovers from high-profile creators, to promotions from their own staff members, Asos has mastered how to give a real-life feel to an onscreen brand – and could take it one step further.
In February last year, for example, Asos brought in social media stars the TikTokChavs to film content around its headquarters – why not do the same live in-store? The same consumers that watch the content are bound to enjoy live displays and the chance to meet their favourite influencers.
Brand hub
As Asos was quick to point out in its presentation on the acquisition, Topshop, Topman and Miss Selfridge already have a strong resonance with shoppers – Topman, for example, has more than 3.3 million active customers.
Add that to Asos’ current 24.5 million active customer base and it is not a small figure, even taking into account any crossover.
In fact, 41% of the four acquired brands’ sales were made through Asos in the first half of last year.
It stands to reason that some of the active customers would prefer to shop in-store.
Moreover, Asos plans to bring Topshop et al under its venture brands division alongside the likes of Collusion, Asos Design, Asos 4505 and AsYou, and turning the Oxford Street store into a hub for all its brands would drive momentum across the board.
“Asos aims to accelerate Topshop’s partnership with Nordstrom to capitalise on the US market. Perhaps a similar deal could be struck to capture the London trade”
While this all makes sense on paper, the fact remains that Asos has never operated a store before and is not really looking to do so now – the retailer has plenty on its hands relaunching the four brands and bringing Topshop back to its former glory.
That is where a bricks-and-mortar partnership might come in.
Other potential bidders for Topshop with more experience in-store operations, such as Next or JD Sports, could be well placed to take on the store and work in partnership with Asos to the benefit of all parties.
Asos aims to accelerate Topshop’s partnership with Nordstrom to capitalise on the US market. Perhaps a similar deal could be struck to capture the London trade, including those willing to travel to a seminal destination.
While chief executive Nick Beighton is yet to rule out the option of taking on the flagship, it is understandable why there would be some hesitation. But there are certainly ways to figure it out.
Sheer curiosity will bring customers flocking back to the store upon reopening and if Asos pulls it off, the shop could become iconic once more.
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