Frasers Group is reportedly set to convert Harvey Nichols’ Bristol and Leeds stores into Flannels.
The direction comes as chief executive Michael Murray sets out his plans for the luxury department store following its acquisition in August.
Murray confirmed the move as he revealed Frasers had also bought the buildings housing Harvey Nichols’ Manchester and Edinburgh stores, which it plans to invest in rather than convert to its Flannels fascia.
The Manchester shop is set to be refurbished next year, while Frasers is in talks with the Cadogan Estate over a potential overhaul of Harvey Nichols’ Knightsbridge flagship.
Murray told Vogue Business that Frasers was prepared to invest “significant sums of money” into the London store, provided it could agree the right terms with the landlord.
“We want to do something truly remarkable in London and bring it back to its former glory,” he said.
The plans offer the clearest indication yet of what Frasers intends to do with Harvey Nichols’ store estate after buying the retailer out of administration for £43.3m in August.
Harvey Nichols collapsed owing creditors £270.5m before being immediately sold to the Sports Direct owner through a pre-pack administration.
Frasers has already started integrating the business. Harvey Nichols relaunched its ecommerce operation under its new owner last month, with Frasers Plus added to the site.
Murray said the group had completed much of the integration during August and was reviewing Harvey Nichols’ brand mix.
He said Harvey Nichols occupied a different position to Flannels, describing the department store as more female-led and internationally recognised, while 95% of Flannels’ sales come from the UK.
Frasers is also looking at expanding Harvey Nichols internationally through franchise partners.
The brand already has stores in markets including Riyadh, Dubai, Doha and Kuwait, with Murray pointing to India and Georgia as possible future locations.
Murray also addressed Frasers’ ownership of Matches, which it bought for £52m in late 2023 before putting the luxury ecommerce business into administration just months later.
He said the experience had reinforced Frasers’ view that physical retail should remain at the centre of its luxury strategy.
“The biggest lesson is that online pure-play businesses are very difficult,” Murray said, adding that digital-only retailers can be forced to spend heavily on customer acquisition.
He said Frasers’ approach was now to remain “retail first and digital second”.
The comments come as Frasers builds out a luxury portfolio spanning Flannels, Harvey Nichols and US retailer The Webster, alongside investments in fashion brands.
Frasers reported an 8.7 per cent rise in revenue to £5.3bn in its latest financial year, although adjusted pre-tax profit fell four per cent to £538m. Its Premium Lifestyle division accounted for 18.3 per cent of group revenue.
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