Next Eyes Takeover of Harvey Nichols in Latest High Street Move, According to Report

Next, the FTSE-100 retail giant, is preparing a takeover bid for luxury department store chain Harvey Nichols, according to a report by Sky News this weekend.

Sky understands that Next is drawing up plans to make an offer for Harvey Nichols, which has been put up for sale by its billionaire owner, Sir Dickson Poon.

The London-listed retailer, valued at more than £17.5bn, has been on an acquisition spree in recent years, snapping up Fat Face, Joules and, most recently, Russell & Bromley.

Plans for Harvey Nichols are said to be at an early stage, with the auction only recently launched. However, sources told Sky News that Next intends to take “a serious look” at the group, whose flagship store sits on Knightsbridge, near rival Harrods.

It remains unclear whether Next would retain Harvey Nichols’ regional stores or focus on its brand and intellectual property.

Mike Ashley’s Frasers Group had previously held talks over Harvey Nichols’ regional stores but is reportedly not part of the current sale process. Next’s chief executive, Lord Wolfson, has built a reputation as one of Britain’s most successful retail bosses, having also acquired Made.com and struck partnerships with Gap and Victoria’s Secret.

Harvey Nichols, founded in 1831, has struggled financially, posting a fifth consecutive annual loss, with revenue falling 5% to £204.8m and pre-tax losses widening to £34m in the year to March 2024.

The company employs around 1,200 people across UK stores and international outlets in Hong Kong, Dubai and the Middle East.