Topshop trough seems to continue. Recently, the British high street fashion brand announced that it will close its four stores in Spain.
The four stores are closed in Barcelona, Madrid, Marbella and Granada, where only Barcelona stores are outlets, and the rest are Topshop's partner in Spain, Glasak is responsible for operations.
Topshop has entered the Spanish market in 1999, but in recent years the performance is not ideal .2016, Topshop sales in Spain fell 8%, a loss of 400,000 euros. Glasak also said, Topshop and Spanish consumers There is also rumors that, Topshop stores in Spain, there has been a significant decline in traffic, and from the Zara and H & M and other fast fashion retailers challenge, but also to Topshop situation worse.
The move to close the store, and Topshop and its parent company Arcadia some of the decision-making conflict. Four stores, located in the store in Granada last year just opened in the second half, and last year, Topshop has just renewed with Glasak ten years Of the cooperation agreement, which has said that the future will open more stores.
Earlier this year, Topshop had just announced that they had entered the Voluntary Bankruptcy Management program in Australia's franchise business.
What is the crux of the problem
In the exit of the Australian market, some analysts pointed out that Topshop's selection work by the London headquarters, and not according to the needs of Australia and New Zealand to adjust, but Spain is located in Europe, and the United Kingdom closer, and did not appear Similar problems.
Many people think that Topshop suffered in Waterloo in Spain, mainly because of its high commodity prices caused by the average salary level in Spain has not yet recovered to the level before the financial crisis, young people in the unemployment rate is also high, so the Spanish consumers , Especially the younger generation, is very sensitive to the price, while compared to Zara and H & M and other major competitors, Topshop commodity prices are high.
Analysts pointed out that in addition to Zara and H & M, many consumers have turned to cheaper prices, more closely follow the trend of online clothing retailers, such as Asos, Missguided and Boohoo, etc. This are on the Topshop sales caused a lot Asos, for example, they have made a lot of investment to ensure that the international market prices meet local needs, and is willing to sacrifice a certain profit to promote sales.
Future prospects
Topshop's performance also affected some of its parent company's Arcadia's performance, while the latter's 2016/2017 fiscal year sales and profits both fell.However, Topshop has also taken some measures to reverse the situation, trying to lower Prices sell more high-end products, they show their Unique product line in London Fashion Week, and sell some more high-end designer brands.
In July this year, Topshop also ushered in a new CEO: British luxury brand Burberry's former chief marketing officer Paul Price. Paul is Topshop history, the first male CEO, his performance in this position will be very large Decided on the future of Topshop.