Next is launching a high-end fashion website, Seasons, to expand its premium offerings.
- Seasons will include brands like A.P.C, Ganni, and Marc Jacobs before Christmas.
- This move builds on Next’s success with the Reiss brand, now a key performer.
- Next aims to cater to its premium customers by enhancing their online shopping experience.
- Frasers Group’s Flannels faces competition from Next’s fashionable venture.
Next is set to introduce a new luxury fashion platform named Seasons, scheduled for release before the Christmas season. The platform will feature an array of prestigious brands, including A.P.C, Ganni, Joseph, Marc Jacobs, Rixo, and Veja. This initiative is designed to capitalise on the robust demand Next has observed for premium brands like Reiss, whose success has been significant since its acquisition by Next.
The decision to launch Seasons comes in response to changing consumer behaviour, with more shoppers opting for fewer but higher-quality purchases. This shift in consumer preference has been highlighted by Lord Wolfson, who noted that their customer base shows increased interest in mid and upper-tier priced items. He expressed confidence in serving these discerning customers more effectively through the new platform, offering brands they potentially desire.
Since acquiring a considerable stake in Reiss, Next has seen the brand become a standout performer within its portfolio. Increasing its stake from 25% to 74%, Next has reaped the benefits of Reiss’s strong financial performance, prompting it to raise profit forecasts for the brand significantly. The anticipated profits for Reiss are expected to reach £40.2 million by January 2025, up from £24.1 million the previous year.
The launch of Seasons positions Next as a direct competitor to Flannels, a prominent player in the premium retail market owned by Frasers Group. Although Flannels has experienced rapid growth, it has also faced criticism for its management of recent acquisitions, including placing some into administration shortly after purchase. Next, however, is taking a strategic approach by focusing on building a strong brand and consumer relationship with careful investments.
Lord Wolfson has clarified that while Seasons represents a new venture for Next, it is not an overly aggressive financial risk. The focus lies on enhancing their digital offerings and ensuring satisfaction among third-party brands featured on their website. Consequently, Next has revised its annual profit forecast upward, now standing at £995 million, marking an 8.4% increase from the previous year.
Seasons marks a significant step for Next in capturing the premium fashion market, aligning with evolving customer preferences.
