Will new ownership restore Harvey Nichols’ fortunes?

Harvey Nichols is in search of rescue, according to recent reports, with the Knightsbridge-headquartered department store warning that it may collapse without new investment. Frasers Group, the Mike Ashley-owned conglomerate, is reportedly the frontrunner to purchase the luxury chain. 

Whoever buys the chain will be inheriting a brand with some challenges to overcome. Alongside its financial challenges – having not turned a profit since COVID – data from YouGov BrandIndex UK reveals that Harvey Nichols’ public perceptions typically fall some way below those of the average high street store.

Impression scores, a measure of general likability sit at 13.4: 3.1 points behind the high street average (16.5) . Consideration, which asks the public which brands they would contemplate purchasing from next time they are in the market for a particular product, shows a similar trend: Harvey Nichols (4.8) trails high street brands (15.2) by 10.4 percentage points. The gap widens even further when comparing against department stores (25.1). i In terms of value for money, the brand is perceived as considerably worse (-7.0) than either typical high street retailers (6.5) or its fellow department stores (4.9). 

It fares better in terms of Quality (28.7), significantly outperforming the high street average (14.8), but it remains 13.7 points behind the average for department stores (42.4). It performs similarly with Reputation scores, which ask consumers if they would be proud or embarrassed to work for a brand. For Harvey Nichols, these sit at 22.0: more than twice the average high street retailer (9.2), but short of other department chains (29.5). 

Summarising its current perceptions, Index scores – which track overall brand health by averaging several key metrics – are 11.2: under high street retailers (12.4) and considerably lower than other department chains (25.8). 

Overall, Harvey Nichols currently underperforms across several metrics compared to high street and department store averages. Whether it finds a new owner on the timeline it has laid out for its rescue or not is currently unresolved. If Harvey Nichols is acquired, the first priority may be improving its financial situation – but on the evidence, improving its public profile could be second. 

This article originally appeared in City A.M.