(Bloomberg) -- Nordstrom Inc. is investing in Topshop, one of Britain's best-known apparel brands, and several other labels owned by Asos Plc as the U.S. department store chain tries to boost its appeal among younger shoppers.
The companies are setting up a joint venture that gives Nordstrom a minority stake in Topshop, Topman, Miss Selfridge and HIIT, according to a statement Monday. Nordstrom will become the only brick-and-mortar presence for the brands, and the chain will also offer click-and-collect services for Asos in North America.
As apparel retailers try to recover from a difficult stretch during the pandemic, Nordstrom is betting Topshop can succeed with younger shoppers despite the label's rocky performance recently. The brand debuted just over a decade ago in the U.S. to great fanfare, but owner Arcadia Group began shuttering stores and filed for insolvency late last year. It sold Topshop and other brands to Asos in February for 295 million pounds ($410 million).
Nordstrom, which was the first retailer to offer Topshop clothes in the U.S., said in the statement that this partnership will help it target “the 20-something customer.” Asos will retain control over the brand, while Nordstrom will help market it, giving the online-only retailer an edge in the North American market thanks to Nordstrom's 350 stores.
Nordstrom shares fell 1.8% at 9:33 a.m. in New York. Asos was little changed in London.
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