Green on expansion trail after U.S. Topshop success

Posted by lena on Jun 11, 2009 in News | 0 comments

Sir Philip Green is thought to be mulling an expansion of his American operations following the success of his Soho store in New York City, launched in the teeth of the U.S. consumer slump.
Evidence from the Soho outlet, aimed at younger and more fashionable customers, suggests an appetite for Green’s fast fashion branding which includes the stylish ranges developed by supermodel Kate Moss.
So far sales in the first New York operation in lower Manhattan are understood to be running at 30 per cent to 40 per cent ahead of Top Shop’s expectations.
The business, located in an area of relatively low rents, looks set to be well in the black in its first year of operation.
This would be a considerable achievement for any British retailer exploring the U.S. market.
In the past British fashion retailers tapping the American market – with notable exceptions such as up-market Burberry – have found it difficult to win over the hard-top-lease and sometimes more conservative U.S. consumer.
Top Shop, with its combination of modest pricing, high fashion turnover and the
cache of the Moss range looks as if could break that mould.
Green is considering a second New York opening in a less trendy midtown Manhattan location currently dominated by the entrenched fashion groups such as Saks Fifth Avenue and Banana Republic.
If the fashion entrepreneur does proceed with his plans it is likely to stock the store with less edgy clothing than that on offer in Soho.
Top Shop believes that there is a good market for its ranges in the U.S.. Other potential locations for future stores are thought to include Miami, Los Angeles, Boston and Chicago if suitable sites, without excessive-rents, can be identified.
The medium term plan, depending on the continued strong showing of the New York stores, is a roll out of ten to a dozen shops providing a useful international stream of income.
If Green pulls off his expansion in the U.S. it will be in contrast to a number of other British retailers, including Marks & Spencer, which have sought to tackle the North American market and failed.
The view within Top Shop is that if it can run the business profitably amid a time of suppressed consumer confidence and rising unemployment it will be well on the way, to establishing a durable U.S. chain.
source: dailymail.co.uk