Ocado has sold off beauty business Fabled by Marie Claire to high street retailer Next for a deal that will be worth about £8MM.
WHO: Fabled by Marie Claire was founded in 2016 with its dedicated premium beauty retail store in London and website operated by Marie Claire Beauty Ltd.
Next is a retailer with approximately 510 stores across the UK and Ireland. The majority of the stores sell clothing, footwear, accessories, and/or home products.
Ocado was established in the UK over 16 years ago and has become the world’s largest dedicated online grocery retailer with over 580,000 active customers shopping.
WHY: The decision was a result of the new joint venture with Marks & Spencer which is due to launch towards the end of next year. The acquisition gives Next stronger footing in the beauty sector.
IN THEIR OWN WORDS: “The recent JV with M&S has meant that the centre of gravity at Ocado Group has shifted,” Tim Steiner, chief executive of Ocado, 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 endeavor.”
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.”
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.”
- Ocado sold beauty store and website Fabled by Marie Claire to Next in a deal that will be worth about £8MM to Ocado.
- Next paid a small upfront fee and will pay at least £3MM as part of an earnout agreement, giving Ocado a cut of sales for the four years to 2024.
- Next has already been collaborating with Fabled over the past eight months, selling more than 100 beauty brands through next.co.uk.
Photo: via Fabled