The Demise of TopShop and the Future of Retail Experiences

By now we all know that Topshop US stores are dead. Last week, I went into Topshop to pick a few final souvenirs, out of respect, and the scene in the store was something out of a zombie apocalypse movie.

Items were strewn everywhere, the usual decor and grandeur were replaced with eerie white walls and white lighting. Everywhere you turned masses of prints and wide-legged onesies laid in piles. People grabbed and flicked clothing at an otherworldly pace. Others carried piles of picked over items to the dressing rooms. The associates were loudly commenting on the store's management and corporate team’s lack of care; it was a cringe-worthy scene.

After sifting through piles of random assortments, I found a few items to take home. Wading back to the register, I was horrified to know that the sign read Cash Only. The sales associates behind the counter shrugged, “they took all the credit card machines, what do you want me to do?” She was correct in her laments, she had no power as Topshop had been gutted and left in an ‘every man for themselves’ type fashion. As I walked out frustrated, I recalled thinking about how I predicted Topshop was going to go down the last time I visited. For the sake of this article, I’m going to take my consultant hat off and speak only as a customer, who are in fact the real victims of Topshop’s bitter end. ( We won't touch on the scandal just the facts from a shopper's perspective.)

The issues:

Since Topshop came to the United States, it was known for its great on-trend pieces with prices reflecting a quality standard above H&M and Forever 21. My first encounter with Topshop was online. Although Topshop had hundreds of styles, for me only around three or four were relevant at a time. Walking into the Topshop store in NYC, which was an inconvenient trek all the way to Soho, you were immediately met with hundreds of styles, lively prints and a convenient illusion of the perfect wardrobe.  This may seem ideal at first but here are their issues:

Too much variety, not enough quality

Every store level had what felt like hundreds of styles. My shopping routine always consisted of first scouting the entire store to make sure that the “something better” the layout often hinted at would not go unnoticed. That feeling was always fleeting as it didn't take long to case the entire store and realized many of these items were pretty to look at but were never going to make it home with me ( kind of like dating). After finding the best styles for my taste, I was always confused about the price versus quality factor. It seems to me like TopShop kept raising its prices for items whose quality and fit did not match (personally, fit is a component of quality.) To make matters worse, Topshop always had massive sales of polyester and synthetic clothing that nobody wanted. They were also originally high-priced but had been marked down significantly. It didn't make it easy to really want to buy something that was not a must-have piece and may go on sale soon.

Too Much of a Good Thing is Bad

Merchandising may have been one of the root causes of TopShop’s demise. Clothing was everywhere and on unreachable levels. When items are too high, they seem literally out of reach as if they are only for observation like in a museum. This may seem like a great idea visually, but when the sales associates scurry by like shadows avoiding people on their quest for elusiveness, you lose the desire to take the extra step and ask for help. After losing interest in asking for the coat hanging eleven feet above the ground, you simply move on. Making the shopping experience more convenient for the shopper should be a top priority.

Crouching Styles, Hidden Colorways

To add insult to injury, if you do find an item on your level that you liked, you would quickly notice that the size availabilities are lacking. By the time you got to the end of the run and bypassed sixteen size 4s, you would then notice two other completely different clothing styles behind the one you wanted. I don't mean an additional colorway of the same style, I mean completely different styles of clothing hidden behind the first one all on the same bar. It always confused me as to why the bars were set up in this way. The bars were a most unpleasant surprise, a motivation to keep looking and not to commit to purchasing. If brands are gonna have secret and hidden merchandise, then pair it with an efficient method to discover those items. Also make it easy for the customer to find their sizes, perhaps a way to let customers easily know what’s in the inventory vs. what’s out on the floor.

Boutiques within Boutiques

Initially, TopShop merchandising looks as if you are shopping in boutiques as if in one area you could put together a whole look within the style category. This effect seemed to only happen on the first floor and the rest of the store was simply confusing. I don't think Topshop understood style or how to put looks together for actual people and not mannequins. There was such an effort to push this “Instagram feel” and “influencer style” everywhere which is not always conducive to smart shopping. I get it, most retailers are still using many outdated methods to sell products as if we still live in 1996 and shop at malls. The modern customer wants a concierge service. Perhaps it’s time to add an aspect of consumer behavior to visual merchandising with the intention to actually style and wardrobe.

The Disappearance of Tall

I am tall and I learned this by the number of people who remind me daily on how tall I am. I loved Topshop because they had the best denim for tall girls with great stretch and selections of items that were for tall people. Much to my dismay, I came into the store one day looking to go find my favorite pair of jeans and the entire tall section was gone. Feeling defeated, I asked an associate what happened and they responded it was “taken away.”

Bye, Topshop, you no longer care for me.


Sales

Sales are cool and bargains are nice, but if you have what I like and want then I will be willing to pay more! Sometimes, too many sales reek of desperation and poor buying. Every time I entered Topshop in The Grove, there seemed to be an entire floor of items on sale. I can't explain why, but it immediately devalued TopShop to me. Wading through racks and racks of styles that clearly no one would ever buy and stepping over disheveled clothing always turned me off. The sales were blah but the markdowns were so vast it always made me wonder why they didn't just lower their prices overall to a sweet spot? Most importantly, the question remains: who keeps ordering items into the store that no one wants? No one ever asked me what I would like to see in a Topshop store, and judging by the frequent sales, no information on what customers wanted was being collected! Maybe that would’ve salvaged what little was left of the formerly strong store. Customer feedback loops are vital to the longevity of the store and for the reduction of waste.

House of CB

TopShop created an entire boutique within its store to bring in House of CB. This was also a bit strange to me, not because of the concept, I think it was a great negotiation on behalf of the House of CB, but once I realized House of CB fit better, had cuter options and less variety, I actually started visiting Topshop to look at their items only. House Of CB became your best friend’s cute brother who had mutual feelings for you and a convenient excuse to visit Topshop. Can’t say that it helped the brand, but it might have gotten foot traffic in the door. I actually hope House Of CB invests in some pop-up stores in NYC.

A Future Without Technology is No Future at All

Nothing makes me more upset (maybe I am putting my consultant hat back on briefly) than the lack of technology in stores. There's no way to see available sizes and yet not enough associates to help you find anything. You actually have to stand and wait for a dressing room, without a concierge to tell you when you can come. There are no associates walking around with iPads helping you style your looks and clearly no understanding of what consumers actually want versus what is available in the store. There’s definitely no sizing technology to help you navigate 3000 SKUs and find what's best for you even if it is hidden behind multiple styles. There didn’t seem to be much data collected on where customers hang out most in the store or what items were top sellers. It doesn't take robots to improve your shopping process, it takes mindfulness. Customer centricity is not a buzzword it is what will save you from bankruptcy and shame.


Topshop is yet another grave lesson about what happens when you don’t put thoughtfulness into your shopping experiences. Retail is changing drastically and sales aren’t enough to guarantee customer loyalty. You must be in tune with what shoppers want and what’s happening and understand how to translate those needs into the shopping experience.