Next, Britain’s largest high-street acquirer, is preparing an early bid for struggling luxury department store Harvey Nichols. Sources familiar with the plans said the FTSE 100 retailer has not commented publicly, and Harvey Nichols has also remained silent. The move would mark the company’s first entry into pure luxury retail.
Losses and a sale process
Harvey Nichols has reported losses for five consecutive years, including a pre-tax loss of €39.7 million for the year ending March 2024. Revenue dropped 5% to €239 million during the same period. Owner Sir Dickson Poon, who purchased the chain in 1991 for €61.9 million, has largely withdrawn from daily operations. He later brought in FTI Consulting to manage a formal sale process.
Chief executive Julia Goddard is leading a refurbishment of the Knightsbridge flagship store, though the broader business continues to face challenges. The sale has drawn interest from several parties, including Frasers Group, which previously considered buying the chain’s regional locations. Frasers is not currently involved in the wider sale, but wealthy buyers from Asia and the Middle East are expected to review the opportunity.
The real estate question
While attention has centered on the brand’s future, the fate of its physical locations may prove equally important. The chain runs seven stores in the UK and Ireland, along with sites in Hong Kong, Dubai, Riyadh, Kuwait, and Doha. It is unclear whether Next would keep this network or, as it has with past takeovers, focus on the brand and intellectual property rather than the buildings.
The group’s acquisition strategy has long prioritized brands over property. It has acquired FatFace, Joules, Cath Kidston, Reiss, and earlier this year, Russell & Bromley out of insolvency for €2.9 million. With a market value over €20.4 billion, the company can quickly absorb struggling retail names—but Harvey Nichols would be its largest purchase yet.
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If Next decides to sell the store estate, it could release a large portfolio of prime real estate, particularly in central London. Landlords, asset managers, and developers with stakes in high-value retail properties are already watching the situation closely.
The potential bid comes as Frasers Group awaits a decision on its offer for Hugo Boss, showing how aggressively UK retailers are competing for premium assets. The process remains uncertain, with no official confirmation from either side, but the implications stretch beyond the brand to some of the country’s most valuable retail spaces.
The refurbishment of the Knightsbridge store continues, signaling business as usual for now. What happens next may hinge less on the brand’s history and more on the value of the property beneath it.
Investors have taken note of similar shifts in European real estate markets, where demand for prime locations remains strong.
