Next, the well-known British fashion retailer, is reportedly in advanced talks to acquire the popular apparel and lifestyle retailer, FatFace. The potential deal is said to be valued at over £100 million and would mark another significant acquisition for Next, which has been actively expanding its brand portfolio in recent years.

FatFace currently operates around 180 stores in the UK and has been exploring a potential sale for some time. The brand has gained traction not only in its home market but also internationally, with successful entry into the Canadian and US markets. This expansion would greatly benefit Next, providing them with a reputable and established family-focused retailer.

The financial performance of FatFace has been promising, with its most recent accounts showing significant growth. In the year ending May 2022, the company reported a revenue increase from £151.3 million to £234.8 million. Additionally, they turned a net profit of £5.2 million compared to a loss of £11.2 million in the previous year. The brand’s strong performance during the Christmas period further underscores its potential value, with sales up 34% in the five weeks leading up to January 7.

Next’s move to acquire FatFace aligns with its strategy of diversifying its brand offerings and expanding both its physical and digital presence. In recent years, Next has made notable acquisitions, including, Joules, JoJo Maman Bebe, and Cath Kidston. The retailer has also increased its majority stake in Reiss and formed partnership deals with Gap, Laura Ashley, and Victoria’s Secret. The addition of FatFace would further strengthen Next’s position in the UK retail industry and solidify its reputation as a leading player.

While Next and FatFace have not officially commented on the potential acquisition, an announcement is anticipated in the coming week. If the deal does proceed, it would demonstrate Next’s commitment to growth and its innovative approach to capturing new markets and diversifying its brand portfolio.

Useful links:
Next Official Website
FatFace Official Website