Case Study: Fashion retailer Arcadia achieves up to 90% higher average order value with Klarna consumer finance

Fashion innovator Arcadia is first in the UK with online consumer finance from Klarna

Arcadia, a major UK fashion retailer operating brands such as TOPSHOP, TOPMAN and Dorothy Perkins across more than 2,500 outlets, faced high online abandonment rates (68% overall and up to 3.8 times/month among 16–24 year olds) and needed a faster, more consistent checkout experience. To tackle this, Arcadia partnered with Klarna to introduce online consumer finance across its brands.

Klarna’s online consumer finance was integrated into Arcadia’s existing checkout so shoppers can apply for instant credit without leaving the site; Klarna also assumes the customer credit risk and pays Arcadia immediately. Within months Arcadia saw a dramatic uplift in purchasing power and conversion, with Average Order Value rising 80–90% versus other payment types.

Arcadia

Richard Burchill