The retailer, which bought Lipsy in October for£17m, will open a 1,600 sq ft shop-in-shop at its 80,000 sq ft store in the Arndale centre in April. Lipsy will also have its own entrance and signage.
A director at Next said two further stores will give space over to Lipsy, including Dublin’s Dundrum Town Centre scheme. He said the move makes use of surplus space and allows Lipsy’s target audience of young women easy access to the brand, without having to go right into a Next store. He added that if the trial proves successful it will be rolled out.
Lipsy will also open a further three standalone shops this year at as yet unconfirmed locations. Its first standalone opened last year at Brent Cross and the brand is also stocked at shops including Selfridges, House of Fraser and Fenwick.
Retail Knowledge Bank senior partner Robert Clark said Next’s acquisition of Lipsy was an interesting move and gives Next access to a new audience. He said: “They didn’t pay that much for it and this is a mark that they obviously have some confidence in it.”
The Next director added that the Lipsy range will be expanded, taking advantage of the Next supplier base. Presently Lipsy stocks mostly dresses and tops, but there is scope for further categories.
He added that the Manchester store had been “a lost opportunity” in terms of store design since it opened at the end of 2005 and the decision to move Lipsy into some of the space had been straightforward.
Next reported a 7 per cent drop in like-for-like sales from July 29 to December 24 in stores unaffected by new openings. The retailer stood firm on its January Sale despite the heavy discounting on the high street.
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