Topshop, Topman join Asos’ stable of brands
Online marketplace Asos has picked up the Topshop, Topman, Miss Selfridge and HIIT brands from the collapsing Arcadia Group.
The £265m deal sees the business pick up the four brands, which it sees as complementary to its own brand portfolio, and will be completed on the 4th February. The cost was paid entirely from Asos’ cash reserves.
“We’re extremely proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands,” said Asos chief executive Nick Beighton.
“We have been central to driving their recent growth online and, under our ownership, we will develop them further using our design, marketing, technology and logistics expertise.”
The deal allows Asos to further boost its own-brand offer with “strong labels that resonate” with their core customers of 20-somethings, while also being able to reach a different market than its current offer.
The plan, according to Asos, is to integrate the four new brands into the business quickly, transitioning 300 workers from the brands across, and review the supply chain of each to ensure they comply with their own principles.
“Beyond this, we will work to maximise the opportunity for the brands’ global distribution,” Asos said.
For example, while the four brands’ main market is in the UK, Asos sees the opportunity for more international partnerships, such as a potential partnership with Nordstrom in the US in order to accelerate the wider group’s rollout in that region.
While these opportunities exist, Asos is expecting incremental sales in FY22 to be flat to FY20 acquired brand sales, as it focuses more on driving growth on its main marketplace platform.
The business is, however, expecting a double-digit post-tax return on capital in the first full year the brands are within its wheelhouse.
This story originally appeared on sister site Inside Retail.