Next eyes Russell & Bromley deal
The high street giant Next is reportedly considering making an offer to invest in Russell & Bromley, the shoe retailer that said it was looking for a fresh cash injection.
It has been reported that the FTSE 100 company is among several possible parties interested in investing in the smaller retail brand. It is unclear whether the deal would be an acquisition or a straight investment, according to Sky News.
Russell & Bromley said it had appointed the advisory firm Interpath to explore options for new financing.
Next has been the stock exchange’s best performing retail business, owning household names including the FatFace and Made.com, a furniture retailer.
It also holds partnerships with Gap and Victoria’s Secret through its e-commerce service.
A deal could transform the 145-year-old retailer, which has 37 stores and employs hundreds of people.
Clothing boom coincides with Next plans
It would also come against the backdrop of a flailing UK economy, with high street bosses taking aim at the government for hiking costs and piling on an extra load of regulation through the Employment Rights Bill.
Recent surveys have pointed to stagnation in retail sales and poor results in consumer confidence.
According to the leading industry group, the British Retail Consortium (BRC), sales increased by 1.4 per cent year on year in November, against a decline of 3.3 per cent in November 2024 and below the 12-month average growth of 2.5 per cent.
BRC chief executive Helen Dickinson said that it has been a “difficult year” as retailers grappled with “ever-rising cost pressures”, including a new minimum wage, higher national insurance contributions and a new packaging tax.
Consumer confidence has also been far below long-term averages in other trackers by S&P Global and the research firm GfK.
Next may see some opportunities in people’s interests in clothing.
In another survey by the BRC, it was revealed that Gen Z were the most likely to want clothing for Christmas while other generations preferred money or cards.