Topshop goes stateside

Topshop owner, retail billionaire Philip Green, is ready to tackle the US market. Green has already found a site in New York that he is interested in and Topshop may open there as soon as next spring. "If we enter here, we're not going to be low-key," Green told WWD, adding, "Every retailer's dream is to build a global brand. Look at what Zara and H&M have done. That's exciting."

However, Green is cautious about his approach, stating that a lot of planning is involved for the venture to be a success. "We are not a public company," he said. "We can afford to take a longer view to get it right." The most important detail is finding a local partner for back-office operations and logistics. "Can we do here what we do in the UK, which is deliver fresh merchandise three times a day at peak periods? We want to execute at the same level here we do there, and that means we need a partner here."

Topshop currently operates approximately 290 stores. The Topman chain for men operates 165 stores. Although the US is a priority for Green, he is also interested in opening shops in Europe. He admitted, however, that "it's harder to find sites of the size we need in Paris." With his eye on a site, Green said that if it works, Topshop could open in New York in spring 2007. He added that he has been examining many sites with square footage between 60,000 and 80,000square foot and said that he is interested in six to eight flagships and perhaps also shop-in-shops.

Topshop's flagship on Oxford Circus in London has annual sales of almost $200 million (£108.8 million), or $2000 per square foot. On average, the chain has sales of $1,000 per square foot. "Say a store here clicked and we did $100 million that gave us another $20 million in earnings," said Green. "That means we have another business model to build on. It proves Topshop travels and we are in a completely different game then."

To promote the brand's reputation outside the UK, Green intends to take the online store international around mid June. "We understand the real estate risk, but we understand the single biggest risk, which is the risk to the brand," said Green, and concluded, "We are not looking to get rich quick. I think that's the right thinking for a family business in the long game."