Topshop owner reports major fall in profits, but beats industry estimates online

Topshop owner reports major fall in profits, but beats industry estimates online

Arcadia, the owner of Topshop and Topman, today reported a 38% fall in annual profits to £133 million.

Although the fall was tempered by a 27% rise in e-commerce sales, which beat the 21% year-on-year figure from the most recent IMRG Capgemini E-retail Index, it also said same-store UK sales were down by 1.8%.

The group, which also owns Bhs, Burton, Dorothy Perkins, Wallis, Evans and Miss Selfridge, announced it was to close up to 260 stores in the next few years as store leases come up for renewal. But Arcadia boss Sir Philip Green also told the BBC it would be discounting heavily on the High Street this Christmas.

Technology increasingly dominant

Chris Webster, vice president and head of consumer products and retail at Capgemini, commented: “We are still spending, but we’re being selective and this trend will be very apparent this Christmas.

“Technology is evolving and so is the consumer. Gone are the days when we were limited to shopping just on the High Street and were at the mercy of the weather. Shoppers have become very savvy, out of both need and convenience – we’ll hunt down the best bargains online to get the most out of our Christmas budget, but also because we can, easily and conveniently.

“Retailers understand consumer behaviour and have adapted accordingly, embracing the opportunity devices such as smartphones and tablets offer them in connecting with potential customers.”