Next is quickly cementing itself as one of the UK’s most prolific buyers of retail businesses after it added FatFace to its shopping basket last week.
The retail giant revealed on Friday it had snapped up the retailer in a £115.2m takeover deal as the lifestyle brand became the latest to join the group’s growing list of retail acquisitions.
From Joules and Reiss to Made.com and Cath Kidston, Retail Gazette takes a look at what Next has done with its previous acquisitions.
Reiss
Next widened its stake in Reiss to 72% last month after it bought out private equity firm Warburg Pincus’ interest.
It had originally bought a 25% stake in Reiss back in 2021 before increasing it to 51% in 2022.
Just last month, Next boss Lord Wolfson said its acquisition of the brand had been a big success and had achieved a return on capital of around 20%.
He described Reiss as having a “great brand, great management team, the ability to add enormous value and a good price in hindsight”.
Next, which does not pull out figures for Reiss, said the brand had overperformed over the year.
Reiss said at the turn of the year that it expected to deliver a record profit after a 20% jump in sales over the key Christmas period.
The upmarket fashion retailer continues to trade from around 64 standalone stores and online, as well as 35 concessions in John Lewis, Selfridges and Fenwick.
Its womenswear and menswear ranges are also both available on Next’s Total Platform and it launched kidswear not long after the Next acquisition in 2021.
Reiss boss Christos Angelides – a former group product director at Next – said the move onto Total Platform in February 2022 had “delivered significant improvements in our delivery promise, customer service and returns options”.
It now has later delivery cut-off times for with customers able to secure next-day slots, which will be offered as standard on orders made up to 11pm.
This was a big improvement on its previous 7pm cut off and three to five working days standard delivery service.
The fashion retailer also expanded its click-and-collect service from 50 to 600 collection points nationwide.
Angelides also said its stock availability had improved, both in retail and online.
Reiss’ is eyeing further growth and Angelides hinted it would launch “a number of new initiatives that will expand the breadth and choice of our collections worldwide” last month.
Made.com
Next revealed last week that it would open its first in-store Made.com concession, one year after rescuing it from administration.
The furniture retailer is set to unveil the first of the new spaces in its Sheffield Meadowhall store this December.
Made.com head of brand Hollie Parkinson said the company planned to increase its presence and was looking at multiple expansion options, including brand partnerships, external stores and returning to Europe next year.
Joules
Next snapped up the fashion brand out of administration for £34 million in December after teaming up with founder Tom Joule for the deal to take on 100 stores.
The retail giant is currently in the process of transitioning Joules to its Total Platform, which will see it benefit from Next’s ecommerce, fulfilment and marketing prowess, and merging its internal systems with the rest of the group.
In April, the retail giant launched consultations with Joules staff as it said a number of tasks could now be absorbed into its own teams or were no longer needed.
Next chief executive Lord Wolfson admitted last month that the brand’s first year with the business had been “disappointing” and that he believes it paid too much for it.
However he has confidence in the brand in the long term. Wolfson expects Joules to break-even next year and return to profitability the following.
Cath Kidston
Next relaunched Cath Kidston on its Total Platform back in June this year, just three months after it bought it out of administration.
The retail group snapped up the vintage-inspired retailer’s brand name, domain names and intellectual property in March.
Like Made.com, Next operates Cath Kidston as a pure licensing business and it operates independently within the group.
The brand focuses on delivering “inspirational and original design”, alongside developing relationships with licensees, who can deliver their products to market, according to the retail giant.
Next has opted not to develop a separate website for Cath Kidston until it has rebuilt the brand in the
UK.
Those searching for Cath Kidston online or inputting its former URL are diverted through to Next’s website, where it has a homepage for the brand.
Cath Kidston products are available at Next and Label, which Next owns, as well as other retailers such as John Lewis.
Victoria Secret
Next signed a joint venture with lingerie retailer Victoria’s Secret’s US parent company L Brands in 2020 after its UK arm fell into administration.
It operates its UK and Ireland franchise, and owns 51% of the business here.
Next has been rolling out of Victoria’s Secret concessions across its store network as it looks to boost the brand’s footprint.
The lingerie retailer trades from 20 standalone stores nationwide and 36 concessions inside Next shops.
It also sells its lingerie and swimwear ranges online via its Total Platform.
Gap
Similar to Victoria’s Secret, Next runs Gap’s UK operations as a franchise partner after its US owner decided to shift the business online.
The group operates Gap’s online business across its Total Platform and hosts seven Gap-branded shop-in-shops.
Jojo Maman Bébé
JoJo Maman Bébé continues to operate standalone stores across the country and sell through its own webshop.
Next, which owns 44% of the business with the rest purchased by investment firms linked to hedge fund Davidson Kempner, also sells most of the baby goods retailer’s range on its Total Platform.
Following the acquisition in April last year, founder Laura Tension stepped away from the business and was replaced by JoJo commercial director Gwynn Milligan as CEO.
The baby brand has closed its Newport warehouse, according to the South Wales Argus, as Next had brought some of its operations in-house.
“Store systems, delivery, warehouse services and customer services going forward will be provided by Next’s Total Platform operations based in Yorkshire,” the group said.
JoJo Maman Bébé said that the “early signs are positive” in terms of selling via the Next platform.
It expects this to be a “significant area for sales growth over the next few years”.
Lipsy
Lipsy was the first of Next’s growing list of acquisitions, joining the group in 2008.
It has brought the young fashion brand into more than 50 of its stores via shop-in-shops.
Lipsy’s website was redirected through to the Total Platform in 2018 and the brand has grown rapidly online since the move.
Next revealed earlier this year that three years ago, Lipsy made £6.8m in online profit, and in its last full year results to January 2023, it made £27.5m.
Jeremy Stakol, Lipsy’s co-founder, is playing an increasingly pivotal role at Next.
Earlier this year, he was promoted to the Next board as he took on the role of group investments, acquisitions and third party brands director.
Stakol had already led on many of Next’s investment and Total Platform deals, such as Joules, Victoria’s Secret and Gap.
He is now responsible for investments and acquisitions in third-party brands, and promotes Next’s Total Platform to potential new clients.
Stakol continues to oversee Lipsy’s development, along with the other brands the retail giant owns, other than Next.
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