Next, the British retail giant, is undergoing a significant transformation as it aims to become the “Ocado of fashion retail.” The company’s CEO, Simon Wolfson, is driving this change by leveraging Next’s £2 billion online business to create a “total platform” for fashion. This includes expanding its third-party offerings and launching new designs from Laura Ashley.
The partnership with Laura Ashley is a strategic move for both companies. Laura Ashley, which was acquired by investment firm Gordon Brothers last year, is seeking to establish wholesale and retail relationships through a portfolio of licensees. On the other hand, Next is transitioning from selling its own brand to becoming a third-party technology powerhouse.
In addition to collaborating with Laura Ashley, Next has been actively making acquisitions and forming partnerships in various sectors. These include the acquisition of the Victoria’s Secret UK operation, the launch of a premium beauty chain, and a recent investment in Reiss. This strategic approach aims to create a platform capable of hosting smaller and mid-sized brands, offering them distribution, fulfillment, and other services akin to platforms like Shopify and THG Ingenuity.
Currently, Next’s platform only hosts one brand, Childsplay, but the company intends to target more brands with a fixed commission offer. By reducing the risk for these brands, Next hopes to attract fashion labels with turnovers ranging from £50 million to £250 million in sales. Once the platform proves successful with Reiss, Next plans to sign even larger brands.
While comparisons have been drawn to Ocado and THG Ingenuity, Wolfson believes that Next’s platform offers a unique and comprehensive service. However, he also acknowledges that it will take time for the platform to generate substantial profit.
Next’s ambitious plans and pivot toward becoming a technology partner for fashion reflect the company’s commitment to innovation and adaptation in response to changing consumer behaviors. As the retail landscape continues to evolve, Next is positioning itself as a leader in the digital fashion retail space, providing a robust platform for brands to flourish and succeed.
Useful Links:
1. Retail Gazette: Next looks to become “Ocado of fashion” with tech-focused future
2. Retail Insights Network: Next shares soar on “Ocado of fashion” strategy
