Word: chaine
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...Green says, Scandinavia still holds tremendous potential. But to grow much larger, Topshop will have to make some radical changes. Today, no matter where Topshop's smock dresses or miniskirts are stitched together--or where they're destined--they all pass through Britain. "The existing franchising model and supply chain would not work for significant global expansion, and will need to be adapted," Green says. To construct an efficient, decentralized distribution system is a logistics puzzle that management is attempting to solve...
Green, the billionaire owner of the Arcadia Group, which controls a clutch of British clothing chains including Miss Selfridge and Wallis, is watching a spot about the latest fashion collection to hit Topshop, the jewel in Arcadia's crown. The much ballyhooed line inspired by Kate Moss--the supermodel's wardrobe formed the basis of the designs--went on sale the previous night at the chain's flagship store in London. Basking in the nonstop Moss-fueled coverage, Green can't help smiling: "You couldn't dream for a better start," he says. On May 9, the hype crossed...
...Topshop formula is proving not just popular but profitable too. The chain made around $200 million in pretax profits last year on revenues of approximately $1.14 billion. That's about half the total profits and a third of sales at the privately owned Arcadia Group. It wasn't always this way, says Nick Bubb, a retail analyst at Pali International in London--less than 10 years ago, profits were as little as a tenth of last year...
...four weeks in the U.K., we'll buy it at four weeks in the U.K. rather than buying it cheaper" elsewhere over a longer time frame, says Karyn Fenn, Topshop's other joint managing director. That's a premium the chain's customers have come to expect and are willing to pay for. A halter top, for example, might cost three times as much at Topshop as a comparable piece from...
...company retools its supply chain, Topshop is beginning to focus on the U.S. The track record of British clothing retailers in the States is not particularly auspicious. Several British retailers, including the ubiquitous British chains Next and Marks & Spencer, have retreated after failing to come to grips with the ultracompetitive U.S. market...