Next reportedly eyes Harvey Nichols acquisition to enter luxury market

UK retailer Next has reportedly set its sights on Harvey Nichols, according to a recent report. The potential acquisition would represent a major expansion into luxury retail for Next, which has traditionally focused on mid-market fashion and homewares.

Next has been one of the most acquisitive companies in British retail, with a portfolio that includes brands such as Lipsy and Victoria's Secret UK. A deal for Harvey Nichols would pit it more directly against Frasers Group, which has been similarly aggressive in acquiring retail assets.

Harvey Nichols operates department stores in London and other UK cities, as well as in Hong Kong and Dublin. The luxury retailer has faced challenges in recent years, including the impact of the pandemic and changing consumer habits.

Neither Next nor Harvey Nichols has commented on the report. If the acquisition proceeds, it would give Next a foothold in the luxury segment, a market it has not previously targeted.