Next’s strategic move to launch ‘Seasons’ reflects rising demand for premium products.
- The new fashion site will include luxury brands like A.P.C, Ganni, and Marc Jacobs.
- Increased interest in mid and high-end market segments drives Next’s decision.
- The retail giant’s Reiss acquisition showed significant potential in this market.
- Next aims to compete with Flannels’ premium lifestyle offerings.
Next has announced the launch of a new premium branded fashion website, Seasons, set to provide customers with access to renowned luxury brands such as A.P.C, Ganni, Joseph, Marc Jacobs, Rixo, and Veja. This new venture, expected to be live before the Christmas season, seeks to build on the growing success of Next’s acquisition of Reiss. According to the retailer, “The exceptionally strong demand for some of our existing premium brands, such as Reiss, has shown that a significant portion of our customers actively seek out premium and luxury products.”
This launch comes at a time when shoppers are increasingly purchasing fewer, yet higher quality items, a trend noted by Lord Wolfson, Next’s chief executive. He stated, “We’re definitely seeing more traction at the mid and higher end of our price architecture, than the base. That’s people buying fewer higher quality things.” By offering premium brands through Seasons, Next aims to cater more effectively to its eight million customers who have shown interest in premium products.
The strategy to launch Seasons positions Next in direct competition with Frasers Group-owned Flannels, which has rapidly expanded its premium lifestyle division. Despite Flannels’ robust £1.2bn sales within this sector, it has faced criticism for placing newly acquired premium brands into administration, including Matches.com earlier this year.
Next’s approach, as stressed by Wolfson, is ambitious yet cautious. The retailer is prioritising the satisfaction of third-party brands with the Seasons platform, ensuring a stable foundation for potential growth. Wolfson remarked, “It’s about servicing the premium customers we’ve got better, giving them brands we think that they’ll love.”
The announcement of Seasons coincides with a positive financial outlook for Next, which has upgraded its annual profit forecast for the second time in two months. The retailer reported a 7.1% increase in pre-tax profit to £453m during the first half of the year and has raised its annual profit estimate to £995m, marking an 8.4% increase from last year.
Next’s launch of Seasons signifies a calculated expansion into the premium market sector, reinforcing its competitive edge.
