When Topshop closes who will replace them?

Tuesday, 26 September 2017

Retail analysts say Topshop stock failed to excite shoppers after the fanfare died down.

Topshop and Topman stores in Wellington and Auckland will close by Sunday after receivers failed to find a buyer.

The two stores went into receivership on September 7, which came as no surprise to retail analysts who said the stores operated as outlets for the parent company in the United Kingdom.

The Wellington Topshop store only has a few racks of clothes left.

But when the doors close, other international retailers are likely to swoop in.

Both shops are on prime 1200-square-metre sites and real estate agents say neither would stay on the market for long.

First Retail managing director Chris Wilkinson says many international retailers will be eyeing up Topshop's space.

There is currently only one Zara store in New Zealand at Sylvia Park mall, Auckland.

* Cas Carter: Topshop is a victim of the marriage of social media and fast fashion

* TopMan Wellington shuts its doors**

Japanese fashion firm Uniqlo has expanded rapidly in Australia and is tipped to enter New Zealand.

First Retail managing director Chris Wilkinson said other international retailers may be looking at the Topshop sites.

'The Auckland space would suit one of the next-comers such as Uniqlo, or could suit being split on the ground floor to enable a business that was able to leverage the lower cost first floor space while benefiting from Queen Street frontage,' he said.

'The remaining ground floor space could suit one of the luxury brands eyeing New Zealand or work for daily-essential retailers like Chemist Warehouse.

Wellington's Lambton Quay space was smaller than Auckland's, which was a challenge for big European brands, he said.

But vacancy along Lambton Quay is less than 1 per cent was a prime two-storey space.

'It may suit one of the brands eyeing the capital as a temporary space until they can find the right scale and presence,' Wilkinson said.

Sources have said Spanish retailer Zara is one contender that's expressed interest in the space.

There is currently only one Zara store in the country, in Auckland's Sylvia Park mall.

H&M could also open a second Wellington region store. It will open its first at Queensgate mall next month.

'[H&M] could sustain multiple sites in the region as this representation would mirror what they've done overseas. Possibly a bit earlier than they anticipated, however, opportunities like these don't come along that often,' Wilkinson said.

Top Retail, the company that holds the licence for Topshop in New Zealand, is a quarter owned by companies connected to fashion designer Karen Walker and Christchurch developer Phillip Carter. Barkers menswear owns the remaining 50 per cent.

Australian Topshop stores were placed into voluntary administration in May.

McGrathNicol receivers Conor McElhinney and Kare Johnstone said in a statement the stores would close after October 1 but could close earlier if they run out of stock.

The stores employed 70 staff who have been told the stores will close.

'We would like to thank the directors of Top Retail for their support, which has enabled gift cards to be redeemed during the receivership trading period, and staff for their commitment since our appointment,' the receivers said.