Reports are that Next has entered into talks to acquire Cath Kidston from Hilco. This would provide the Cath Kidston brand with a well-funded ‘home’ and access to millions of potential customers. Currently operating online and from just four stores, Cath Kidston had once operated 60 UK stores.
Charles Allen, retail analyst at Bloomberg Intelligence, commented: “Next’s strategy is to build its ‘Total Platform’ business where it can operate a brand on its label website and do all the fulfilment from its warehouses. This is to broaden the appeal of its own offering as more consumers are likely to be attracted by the greater choice. Next can also provide its consumer credit to help with purchases.
“Cath Kidston is a distinct brand that appeals in ways that Next’s core brand doesn’t. Currently, Next doesn’t have the warehouse capacity to add more brands to Total Platform but will later in the year. Any deal is therefore likely to postpone integration until there is room in the fulfilment facilities. We should expect to hear more in Next’s earnings tomorrow.”
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