Next eyes Harvey Nichols estate amid struggling bid

By Danielle Reed 29/07/2026 2 min read 32 views

Next is reportedly drawing up plans to make an early-stage bid for the struggling luxury department store Harvey Nichols, a move that would mark the FTSE 100 retailer’s first foray into pure luxury retail. Sources describe the process as preliminary, with neither company commenting publicly, but the report highlights a significant expansion of Britain’s most acquisitive high street retailer’s ambitions. The timing coincides with a period of sustained pressure for Harvey Nichols, which has recorded five consecutive annual losses.

Harvey Nichols has posted a pre-tax loss of approximately €39.7m for the year ending March 31, 2024, a deterioration from the previous year. Revenue for the period fell 5% to around €239m. Owner Sir Dickson Poon, who originally acquired the business in 1991 for roughly €61.9m, has largely stepped back from active involvement. He has now appointed FTI Consulting to run a formal sale process for the group.

With a market value exceeding €20.4bn, Next has demonstrated the capacity to absorb distressed retail names quickly, having previously acquired brands like FatFace, Joules, Cath Kidston, and Reiss. It also acquired footwear retailer Russell & Bromley out of insolvency for around €2.9m earlier this year. However, the potential purchase of Harvey Nichols would represent a considerably larger leap than anything in its existing portfolio.

The Real Estate Question

The coverage to date has not fully addressed what happens to the physical assets if a deal proceeds. The chain operates seven UK and Ireland stores, including a Knightsbridge flagship currently mid-refurbishment under chief executive Julia Goddard, alongside international locations in Hong Kong, Dubai, Riyadh, Kuwait, and Doha. It remains unclear whether Next intends to retain this store network or, consistent with its approach to prior acquisitions, prioritize the brand and intellectual property instead. A decision to abandon the bricks could put a meaningful slice of prime central London and regional department store real estate back into play for developers.

This uncertainty creates a complex dynamic for potential suitors. While Next is reportedly interested, it is not the only party circling the business. Frasers Group had previously held discussions about acquiring Harvey Nichols’ regional stores but is not currently believed to be part of the wider sale process. Wealthy individual buyers from Asia and the Middle East are also expected to examine the business, adding to the competition. The approach lands in the same window as Frasers awaits an answer on its own bid for Hugo Boss, underlining how aggressively the UK’s largest retail groups are currently competing for premium and luxury brand consolidation. For landlords and developers with exposure to prime UK department store real estate, particularly in Knightsbridge, the outcome of this early-stage interest is worth watching closely, regardless of whether the focus falls on the brand or the buildings.