Can Harvey Nichols find its way back to being Absolutely Fabulous again?
Harvey Nichols, once synonymous with 1990s fashion glamour and featured in Absolutely Fabulous, is struggling financially and has been put up for sale by owner Sir Dickson Poon. Its future matters because the retailer has long been a landmark luxury department store, but it now faces fierce competition and uncertainty over whether it can regain a distinctive place in the market.
The chain made a pre-tax loss of £35.3m in 2024 and has not made a profit since the pandemic. Frasers Group and Next are bidding, with Harvey Nichols reportedly seeking £50m-£60m while Mike Ashley values it nearer £40m and calls it a “death spiral”; retail experts argue a revival would require more exclusive, design-led brands and a stronger digital offering.
- Harvey Nichols is for sale after years of losses.
- Mike Ashley says a turnaround would be extremely difficult.
- Experts favour exclusive brands and improved online retail.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A return to a distinctive, design-led identity could give Harvey Nichols a credible route back to relevance. Its strongest asset is its history as a fashionable destination rather than a conventional department store, and carefully curated designers, experiences and service may appeal to customers seeking something less interchangeable than online shopping or mass-market luxury. Supporters would argue that investment in clear positioning and modern retail spaces can rebuild loyalty while preserving a valuable cultural brand.
The case against
Sceptics would argue that a design-focused revival may not address the structural pressures facing department stores, including high property costs, changing shopping habits and fierce competition from digital and specialist luxury retailers. The 1990s cachet invoked by the brand may be difficult to recreate for customers with far more choice and different expectations, while expensive repositioning carries financial risk if demand does not recover quickly. From this perspective, a broader overhaul of costs, operations and the customer proposition may be needed alongside, or instead of, an emphasis on design.