Next considers bid for Harvey Nichols department store chain
Next is considering making an offer for the Harvey Nichols department store chain.
Sky News has reported that Next is drawing up plans to make a bid for the luxury retailer, which has been put up for sale by its billionaire owner Sir Dickson Poon.
Subscribe to TRBThe plans are understood to be at an early stage of development, as the auction process has only recently got underway.
However, sources told Sky News that Next intends to have a “serious look” at the business, which has a flagship store in London’s Knightsbridge, as well as shops in Manchester, Leeds, Bristol, Birmingham, Edinburgh and Dublin.
Sky News also said it was unclear whether Next would continue to operate the network of regional stores following any takeover, or if it would just utilise the brand and other intellectual property assets.
Harvey Nichols has been struggling with losses over the last five years due to a weaker market for luxury goods, following the removal of VAT-free shopping for tourists in the UK after Brexit. In the year to March 2024, its loss widened to £34 million, while revenues fell by 5% to £204.8 million.
Next has acquired a string of well known retail brands in recent years, including FatFace, Joules, Reiss and Russell & Bromley. It has also secured distribution agreements with Gap and Victoria’s Secret.
Sky News said Frasers Group had been in talks to buy Harvey Nichols’ regional stores but is not currently thought to be part of the corporate sales process. It added that other potential buyers would be likely to include wealthy individuals from Asia and the Middle East.
