Frasers Group is set to convert Harvey Nichols’ Bristol and Leeds stores into Flannels as it reshapes the luxury department store following its acquisition of the business in August.
The move comes as Frasers Group CEO Michael Murray reviews Harvey Nichols’ UK store network, with the group taking a different approach to its regional sites.
Murray confirmed that Frasers also acquired the buildings housing the Harvey Nichols stores in Manchester and Edinburgh and plans to invest in both locations rather than convert them to Flannels. The Manchester store is set to undergo refurbishment next year.
Frasers is also in discussions with the Cadogan Estate over a potential overhaul of the Harvey Nichols Knightsbridge flagship.
Speaking to Vogue Business, Murray said the group would be prepared to invest “significant sums of money” into the London store if the terms with its landlord were right.
“We want to do something truly remarkable in London and bring it back to its former glory,” he said.
The plans follow Frasers’ £43.3 million acquisition of Harvey Nichols through a pre-pack administration in August, which included six UK stores, its ecommerce operation, stock, international franchise agreements and more than 1,000 employees.
Murray said Harvey Nichols occupies a different position from Flannels, describing the former as more female-led and internationally recognised, while around 95% of Flannels’ sales come from the UK.
Frasers is also looking to expand Harvey Nichols internationally through franchise partners. The department store currently has franchise operations in Riyadh, Dubai, Doha and Kuwait, with potential opportunities in India and Georgia.
The acquisition has already been followed by the relaunch of Harvey Nichols’ ecommerce site under Frasers ownership, with Frasers Plus also added to the platform.
The Bristol and Leeds conversions reflect Frasers’ wider focus on using its existing retail estate to build its luxury proposition. Flannels now has more than 80 stores across the UK, while the group also owns US luxury retailer The Webster and has stakes in brands including Hugo Boss, Burberry and Mulberry.
The move also highlights the importance Frasers is placing on physical retail following its experience with online luxury marketplace Matches, which it acquired for £52 millionin late 2023 before the business entered administration months later.
“The biggest lesson is that online pure-play businesses are very difficult,” Murray told Vogue Business. “Our approach is retail first and digital second.”