Topshop profits fall £500m amid online shift
Written by Hannah McGrath
Losses at Topshop and Topman deepened to £505 million in the year to September 2018 after the parent company of Philip Green’s Arcadia retail empire reported a loss of £177.3 million.
Topshop and Topman posted losses of more than half a billion pounds at the fashion brands compared to a loss of £3.9 million the previous year, with sales down nine per cent to £847 million.
The results came after the annual report for Taveta Investments, the holding company for Arcadia Group, cited challenging conditions for the High Street as fashion retailers continue to battle growing competition from online rivals.
The report stated: “The retail landscape has changed dramatically over recent years and the increased competition from other High Street and online retailers in particular has had a significant impact on our performance.”
In a bid to keep up with consumer trends for online shopping, Topshop and Topman are set to launch clothing and accessories on Next’s website in the coming months. Topshop and Topman launched on ASOS’ online marketplace last year.
Earlier this month, Arcadia Group denied reports in the Sunday Times that it is gearing up to sell off brands including Topshop and Dorothy Perkins, as the company embarks on a series of seven Company Voluntary Arrangements (CVAs) as part of a restructuring plan aimed at shoring up its financial future.