Next snaps up Marie Claire beauty business Fabled from Ocado
Next has acquired beauty store and etailer Fabled by Marie Claire from Ocado, as the online grocer makes a strategic shift following its tie-up with Marks & Spencer.
The high street fashion giant acquired Fabled by Marie Claire, which has a store on London's Tottenham Court Road and online store, in a deal worth £8m to Ocado.
Next has paid a small upfront fee and will pay at least £3m as part of an earnout agreement, giving Ocado a cut of sales for the four years to 2024.
Tim Steiner, chief executive of Ocado, said the decision was a result of the new joint venture (JV) with Marks & Spencer, which is due to launch towards the end of next year. “The recent JV with M&S has meant that the centre of gravity at Ocado Group has shifted,” he said.
“In the light of our strategic evolution, and given the success of the collaboration between Next and Fabled, we decided that it would be in the best interests of all parties to now pass the baton so that Next can take Fabled forward. We wish them all the best in this endeavour.”
Next has already been collaborating with Fabled over the past eight months to sell more than 100 beauty brands through next.co.uk including Smashbox, Burberry and Estee Lauder.
Simon Wolfson, chief executive of Next, said: “Fabled’s experience and expertise bring an opportunity for the Next Group to develop an extensive premium beauty business supported by our online and retail platform.”
Publishing brand Marie Claire and Ocado launched Fabled as a joint project in 2016. Amanda Scott, managing director of Fabled, said: “We now have an exciting opportunity to combine complementary capabilities with Next which will enable us to accelerate our plans for developing and extending the range, services and channel offer.
“We look forward to the continued growth and success of Fabled by Marie Claire as part of the Next Group.”