Nordstrom has announced its decision to acquire a minority stake in four fashion brands owned by a British fashion house Asos. Nordstrom has signed the deal with an intention of attracting more customers in their 20s. The brands that are part of the deal include Miss Selfridge, Topshop, Topman, and the activewear label HIIT. Financial details about the deal have not been disclosed by the American luxury department store chain. Commenting on the deal, Nordstrom President and Chief Brand Officer Pete Nordstrom said that it could result in a wider strategic alliance with Asos. “This deal can start a new way of department stores working with brands. Also, we are hopeful of having a wider strategic alliance with Asos in the future.”
Even after the deal, operation and creative control of the Topshop brands will remain with Asos. Across North America, Nordstrom will be the only one to have exclusive retail rights for Topshop and Topman. Pete Nordstrom said that deal with Aso’s brands will help the company to offer something to its customers. “The deal with the Asos brands will let Nordstrom generate newness as well as excitement among youngsters,” he said. The luxury department store chain has been the exclusive distributor of Topman and Topshop in the US since 2012. After the deal, Nordstrom will be the only department store globally where these brands will be available.
The companies said that the customers can also place online orders for Asos at all Nordstrom and Nordstrom Rack locations. The deal to acquire these brands was finalized after British Multinational retailer Arcadia Group filed for bankruptcy last year. Billionaire Philip Green had been running the Arcadia Group for 18 years. Arcadia operated 100 stores and suffered a big blow because of the coronavirus pandemic-induced lockdown that was there for most of the year in 2020. The deal can help Nordstrom enhance its appeal to the young generation of shoppers.
