I am not surprised, maybe they can re-launch in a smaller format (the way they should of started in the first place imo)
http://www.theage.com.au/business/retail/topshop-australia-g…
Topshop Australia Appoints Administrators, Jobs and Store Future in Doubt
jimbobaus on 24/05/2017 - 21:47
Related Stores
Comments
I think a lot of these stores were popular in Aust as cheap online buys from the UK. But that doesnt mean it then translates to actual store in Australia.
I think H&M will be in a similar position. Their stores are pretty junky and low quality goods.H&M is in a different position, they run leaner and their stores consistently meet budget. Plus, they have big annual collabs like Kenzo and Balmain, with online shopping in the works. Plus unlike H&M/Uniqlo/Zara which are part of their international parent companies, Topshop/Topman Australia is just a local franchise under the Glue group. They also cannibalised their own sales by both partnering with Myer and opening their own stores.
Don't think opening two stores in the same location e.g. a Topshop in Myer Bondi Junction and a Topshop store in Westfield Bondi Junction, or a Topshop on Myer Sydney and a Topshop store right opposite Myer was such a good idea too …
I think they cited flat wages growth (which means less discretionary spending) as one of the reasons. "Deserting customers" hardly explains anything but the flat wages growth makes sense. Being discretionary, the first thing to cut when things go tough would be fashion especially in light of H&M, Uniqlo, TK Maxx, plus local offering.
In other words, it's the economy.
Topshop in Australia was overpriced in my opinion and failed in comparison to the selection of Topshop UK.
If your target market is youth make sure you price accordingly…Topshop made a huge mistake in not selling online. Their Australian customers were accustomed to purchasing online through the UK site yet they never expanded to an online presence here? A big error in judgement.
Their clothes have always been abit odd