Next Plans to Acquire Russell & Bromley

Introduction to the Potential Deal

Next, the high street fashion giant, is planning to acquire Russell & Bromley, the 145-year-old shoe retailer. The company, which has a market capitalization of £16.6bn, is among the parties negotiating a deal with advisers at Russell & Bromley.

Background on Russell & Bromley

Russell & Bromley operates 37 stores and employs more than 450 people. The chain was founded in 1880 when the first Russell & Bromley store opened in Eastbourne. It is now run by Andrew Bromley, the fifth generation to hold the reins. The company has appointed consultancy Interpath to explore options for raising new funding for the business.

Next’s History of Acquisitions

If the deal happens, it would be the latest in a series of brand deals struck by Britain’s most successful London-listed fashion retailer. In recent years, the company has snapped up brands such as Cath Kidston, Joules, and maternity clothing retailer Seraphine at knockdown prices. Next also owns Made.com, the online furniture retailer, and FatFace, the high street fashion brand.

Next’s Business Strategy

Under veteran chief executive Lord Wolfson, Next has defied the general gloom on the high street to become one of Britain’s best-run companies. Its Total Platform infrastructure solution has enabled it to onboard other retail brands to provide logistics, e-commerce, and digital services capabilities. Both Victoria’s Secret and Gap also have partnerships with Next leveraging the Total Platform offering.

Future Plans for Russell & Bromley

It was unclear whether a deal between Next and Russell & Bromley would involve a full takeover of the latter’s brand or an investment in the company. Russell & Bromley is trying to appeal to younger consumers as part of a five-year turnaround plan, with Billie Piper, the actress and singer, as the current face of the brand. The company has made significant progress since announcing the ‘Re Boot’ earlier this year and is well-positioned to build on its momentum and continue its journey.