What: The American retailer has taken a minority stake in Topshop and the three other brands Asos acquired out of administration in February.

Why is it important: The deal could signal a new chapter as fashion’s biggest retailers seek out strategic alliances to build an edge in the market.

Asos has performed well during the pandemic, benefitting from the closure of physical stores. But it faces fierce competition from rivals like Boohoo Group and Zalando and has long-standing ambitions to expand in the US. Meanwhile, Nordstrom is regrouping after a challenging year.

A tie up between Asos and Nordstrom could help solve issues for both companies. Asos has strong penetration with a young customer base –— and the powerful Topshop brand. Nordstrom has a ready network of stores in the US. While Asos has said physical retail is not its model, there are definite benefits to gaining access to storefronts.

The partnership will build on existing ties. Nordstrom has been the exclusive retailer of Topshop and Topman in the US since 2012 and will gain exclusive multi-channel retail rights for the two brands for all of North America. It will be the only brick-and-mortar presence for the brands globally.

Nordstrom Buys Stake in Topshop With Asos Joint Venture