Following the news that Next has increased its stake in Reiss from 51% to 72% after the retailer and the Reiss family partnered to acquire Warburg Pincus’ stake; Chloe Collins, head of spparel at GlobalData, offers her view: “Reiss has continued to go from strength to strength since Next first acquired a 25% stake in the business in March 2021. Reiss’ online operations launched on Next’s Total Platform in February 2022, and this has clearly proved fruitful, with Reiss experiencing tremendous growth of 26.4% during its FY2022/23 (for the year to January 2023), far outperforming the rest of the apparel market.
“Next is now by far the majority owner of Reiss, with a 72% stake, and will co-own the brand alongside the Reiss family and the Reiss management team, with Warburg Pincus exiting. This new, more simplified ownership structure will be beneficial for all parties, with Reiss more able to draw on Next’s retail prowess, and Next reaping greater benefits from Reiss’ strongly growing position within the market.
“The brand’s high quality, classic yet stylish ranges hold strong appeal among consumers who are looking for capsule fashion items that will stand the test of time. As a premium brand, its shoppers have been more resilient amid inflationary pressures, and it will have benefitted from some trading up from the mass market too, as consumers try to buy less and more wisely, for both economic and environmental reasons. Reiss’ priority now will be further international expansion, after significantly strengthening its position within the US market in recent years, and Next is the perfect owner to guide it in this journey.”
