Topshop’s comeback: a boon for the high street?

Topshop is back. Once a beacon of British high street fashion, the brand has teased its return to reclaim its position in the retail landscape. But in an era dominated by digital-first brands, resale platforms, and evolving consumer habits, does Topshop have what it takes to thrive again? The journey to this revival has been tumultuous. In 2019, Topshop and Topman reported a staggering net loss of £498.5m, a sharp decline from a £15.6m loss the previous year. It followed a sharp decline in sales by 9% to £846.7m. Arcadia Group, which was Topshop’s parent company at the time, had had to put in place severe measures to stay afloat, including store closures and rent reductions. Unfortunately, these initiatives were too little too late and it ended up going into administration in late 2020. The brand's decline can be attributed to several factors, namely Topshop's failure to adapt swiftly to the digital marketplace which left it trailing behind online-only fashion platforms like Asos and Boohoo. Additionally, the brand's once-iconic status diminished as it struggled to maintain its fashion-forward image. Collaborations with celebrities like Kate Moss in 2007 had previously elevated Topshop's profile, but by the late 2010s, it benefited from fewer high-profile partnerships. The Covid-19 pandemic further exacerbated Topshop's challenges. Lockdowns forced store closures, and the shift towards online shopping accelerated. In 2021, Asos acquired Topshop, Topman and Miss Selfridge for £265m, and focused on reviving these brands’ ecommerce reach. However, Topshop’s recent teasers on social media have hinted at a potential return to physical stores, sparking excitement among shoppers. However, by September 2024, Asos sold a 75% stake in Topshop and Topman to Heartland A/S, the holding company of Danish billionaire Anders Holch Povlsen, for £135m, valuing the brands at £180m. This move was said to be part of Asos' strategy to reduce debt and streamline operations, as it faced a pre-tax loss of £379.3m in 2024, deeper than the previous year's £296.7m loss. Mairi Fairley, partner at OC&C Strategy Consultants, believes Topshop’s revival hinges on its ability to integrate seamlessly across multiple channels. Unlike its past focus on expanding its presence through physical stores, the new Topshop is meeting consumers where they are – online, in-store and through social media influencers. “Consumers are diversifying how and where they interact with brands,” Fairley says. “You might spot a great pair of shoes on an influencer, check them out online, then try them on in-store before making a purchase. Or you might walk past a window display, open the brand’s app, and discover something else entirely. The customer journey today is multichannel and complex.” This new approach aims to make Topshop visible and relevant at every touchpoint, something it lacked in its later years. A more thoughtful approach to store footprint – less about sheer numbers and more about experience – should further enhance the brand’s position in this new retail era. Despite selling the majority stake, Asos retains a 22.5% share in the joint venture and continues to sell Topshop products under a 10-year license agreement, though royalty fees are expected to impact profits by £10-£20m annually. For Vineta Bajaj, ex-Ocado and current CFO at Rohlik Group, Topshop’s main challenge lies in its ability to dictate fashion trends (like it once did) in a market where resale platforms and online-native brands are setting the tone. “Topshop once led the way, but staying relevant now requires more than name recognition,” Bajaj explains. “Gen Z shops differently. They care about sustainability, seek transparency, and expect AI-driven personalisation and frictionless mobile shopping. Topshop needs to lean into these shifts if it wants to stand out.” Beyond Topshop itself, the lesson for British retailers is as blunt as adapt or fade. Investment in technology, supply chain efficiency and brand loyalty (beyond just price) has been stressed in the industry for a long time. Fast fashion isn’t disappearing, but it is evolving – and only the most forward-thinking brands will survive. Gursharan Panesar, strategy lead at Seen Studios, believes Topshop isn’t just another high street retailer, saying that it exists as a “relic of the British high street and a pillar of British culture”. Its absence left more than an empty space on Oxford Street – it left a void in British fashion culture. And its return has ignited nostalgia. “Gen Z is already hunting down #OldTopshop pieces on resale platforms,” Panesar notes. “The resurgence of trends like ‘Indie Sleaze’ and Tumblr-era aesthetics ties back to Topshop’s golden years. Even in its absence, the brand has retained its cultural cachet.” Topshop’s Oxford Street flagship was once a leader in experiential retail, Panesar added, due to its hosting of in-store nail bars, collaborations with Beyoncé’s Ivy Park, and its fostering of a shopping atmosphere that felt like an event. Given all of this, Panesar has reason to believe that Topshop’s return presents an opportunity to redefine that experience for a new generation. “The whispers of a Joni jean never really left London,” she adds. “People love a comeback story; it plays into the nostalgic nature of consumers today. And that coupled with a hyper-local strategy and impressive retail experience proves that there is still an appetite for physical retail.” Jacqueline Shakespeare, consulting partner at Sullivan and Stanley, echoes Panesar’s thoughts on Topshop’s revival, calling shoppers’ emotional response to its return “a classic case of symbolic utility”. “For many, it represents a time when life felt exciting, affordable and full of possibility,” Shakespeare adds. “This isn’t a return to the high street as we knew it, it’s the emergence of retail as theatre. A treasure hunt in Soho says more than a shop lease ever could: we value things more when we earn them or chase them. A brand like Topshop doesn’t get attention just for its clothes, it matters because it evokes emotional memories: youth, identity, excitement. That’s emotional salience at work. The high street isn’t dying, it’s evolving. Physical spaces will matter less unless they offer experience, community, or exclusivity.” Topshop’s comeback isn’t just about one brand – it’s a test case for the British high street. The excitement surrounding its return suggests that physical retail still has a place, provided it adapts. A strong omnichannel strategy, a deep understanding of modern consumer habits, and the ability to leverage nostalgia in a meaningful way could prove to be the formula for success. As Panesar put it, “People love a comeback story” – and if Topshop gets it right, it won’t just be a win for them – it could inspire other brands to rethink their own futures.