It's been another challenging year for retailers, with 2023 with chain issues persisting, inflation at record highs, and low consumer confidence. For some, this has led to the closing of the blinds – hunters, **chase and wilko, among others.
The Center for Retail Research (CRR) estimates that more than 25,500 people have lost their jobs this year as retailers go into receivership.
For some brands facing bankruptcy, other high street giants have stepped in. One trend this year is that a small number of retailers still have capital investment and even acquire other brands from **.
next
A prime example of this is the transformation of a catalog classic into a multi-channel fashion giant, NEXT. Although the company has been acquiring other brands since acquiring Lipsy in 2008, this year it has rescued many UK retailers from ** and taken stakes in more brands.
When retro lifestyle brand Cath Kidson went into receivership in March, NEXT bought it for £8.5 million. In June, the company continued to introduce fashion and homeware brands to its Next Total Platform.
It also announced that Joules, another lifestyle brand it acquired, would launch on its ** – and sooner than expected. Due to the progress made by its technical team, NEXT has brought forward the release date from the original deadline of March 2024 to October.
October was a busy month for the retailer as it also ended with 1£15.2bn bought Fatface from lenders. Next will hold a 97% stake in the business, while Fatface's management will hold 3%.
In addition, Next holds GAP, Jojo Maman Bebe, Reiss, and Victoria'S Secret.
The retailer is interested in more than just fashion brands. At the end of November last year, Next opened its first Made. since acquiring the furniture brand a year agocom store. The Meadowhall ** in Sheffield is designed to provide customers with the opportunity to browse through a wide range of furniture and lighting, showcasing products in a wide range of colours and finishes.
Frasers Group.
End of 2022Sports Direct's owner, Frasers Group, has agreed to acquire 15 fashion brands from rival JD Sports. The deal, which includes Liam Gallagher's Pretty Green and 1980s brand Tessuti, is estimated to be worth £47.5 million. The deal closed in March this year, with Frasers taking control of Topgrade Sportswear, which includes Get The Label.
Mike Ashley's team has also ramped up its investment in fast fashion in 2023. In October, Frasers increased its stake in ASOS to 23 percent, having previously increased its stake in rival Boohoo to 151%
The group is also interested in white goods, and in June Frasers acquired a 9% stake in appliance retailer Currys. Previously, its stake in Ao World, an electrical appliance retailer, increased from 19% to 21%.
Frasers also owns a 37% stake in accessories brand Mulberry, adding a touch of luxury to its products. In May, it sought board representation. Frasers reportedly wants Mulberry to clarify its operations in Asia. Mulberry's majority stake (56%) is held by Singapore's Challice Group, which has backed the brand for more than 20 years.
Marks & Spencer
Another business giant that has upped the ante this year is Marks & Spencer. In May, it launched the sustainable clothing brand Nobody'S Child provided further financial support. In 2021, Marks & Spencer acquired a 27% stake in the brand and this year provided new funding to support the growth of the eco-conscious fashion brand.
nothing'S Child is one of the 60 brands under Marks & Spencer, along with Crew Clothing, Estee Lauder, Skechers, and Toms.
The company began selling third-party brands on its ** about two years ago, and since then, Marks & Spencer has reported a significant increase in the number of customers searching for high street brands on its **. As a result, third-party brand sales increased by 50%.
As part of the growth, Marks & Spencer also hopes to sell beauty, sportswear and homeware brands on its **, with final sales likely to be as high as £1 billion.