Frasers Group, the retail company behind the Matches acquisition — and reported relaunch — is plotting growth in the US with a majority acquisition of multi-brand retailer The Webster.
The Webster founder and CEO Laure Hériard Dubreuil will retain a shareholding of the business and continue to manage the day-to-day of the retailer, which she founded in Miami in 2008 and now has 13 locations across the US. Under Frasers Group, The Webster will continue to operate as a standalone business, per the release, while Frasers will lend its expertise scaling luxury propositions.
“The Webster has been operating privately for 17 years, which these days is quite rare. Like most, we have been weathering the evolving market, which is growing rapidly due to increasing demand for the experience that we offer, but it comes to a point when finding a partner is key,” Dubreuil tells Vogue Business. “As many know, The Webster is so personal to me. It was my firstborn, so while we have always had a finger on the pulse of opportunities, choosing a partner for this next chapter was something I did not take lightly.”
“Our conversations with Michael and the team started exactly how I could have hoped, meaning that preserving what had been built with The Webster was at the core, but scaling it to its ultimate potential was the goal,” she continues. Frasers Group’s strength in digital capabilities and operational expertise were selling points for Dubreuil as she seeks to level up for The Webster’s next chapter, she says.
“The luxury multi-brand landscape is currently under pressure and under-invested, creating opportunity for a proven, credible proposition like The Webster to further grow and scale,” says Frasers Group chief executive officer Michael Murray. “That’s where we come in, providing operational and digital expertise to nurture and scale this already iconic brand to fulfil its potential.”
It’s also an opportunity for Frasers Group to expand its global presence, he adds. “This marks an exciting new chapter for our own luxury portfolio in North America. With Laure’s extensive knowledge and expertise, and The Webster’s strong brand positioning, this partnership will see an exciting future ahead.”
Growth potential
The acquisition comes at a still-shaky moment for multi-brand retail. The US department store landscape is in dire straits, as Saks Global — which now makes up a large chunk of the region’s retail landscape, with Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman under its belt — continues to falter. And Frasers Group’s most recent activity in the space has centred around its acquisition of the once-beloved British luxury retailer Matches. (Which it then announced would go into administration, before buying back the intellectual property rights for a reported relaunch.)
“At first, it gave me pause, because [though] Matches was already in a difficult spot, Frasers didn’t do very well to save it,” says Jessica Ramírez, managing director of consultancy The Consumer Collective. “Having a win with someone like The Webster, if it’s able to maintain its status and survive in this climate, would be a good win for them.”
The Webster is indeed in a very different position to loss-making Matches. It’s a standout in a crumbling US multi-brand landscape for its tight curation and dedicated, loyal shopper.
The Webster’s strength lies in its moderate size. As Dubreuil told Vogue Business earlier this year, “We’re big enough — but at the same time, we’re small enough — to be flexible.” The retailer has already been on a growth path, opening eight stores in the past five years. But, to date, the momentum has been humble.
Dubreuil is confident that the retailer will be able to maintain this agility, due to it remaining a separate entity and keeping its aesthetic and brand identity. “But [we] will have the support and resources that larger companies benefit from,” she reasons. “The ability to be agile and move with the motions of the industry and trends is one of our strengths, and Frasers Group highly values this.” Murray agrees, adding that, once Frasers has gained a solid understanding of The Webster’s business and existing operations, it will work with the retailer to build a plan for its future while “protecting the unique positioning that has been intrinsic to its success”.
Though brick and mortar will remain a priority, under Frasers, Dubreuil is keen to amp up The Webster’s online presence. “We have always had a digital presence, but it has never been the main priority, given the saturation of the digital retail market with so many key players already existing in the space,” she says. “This being said, we know the value that digital innovation brings to the success of a business, and we are excited to have the resources to make an impact in this area.” For Dubreuil, partnering with Frasers also opens the door for international growth, she adds.
The key to The Webster’s success under Frasers Group will be contingent on the maintenance of this balance, experts say. “Maintaining what has made The Webster distinct is vital,” says Neil Saunders, managing director of Globaldata’s retail division. “Its focus on curating an offer that is relevant and interesting is part of the magic of the business and helps to differentiate it from other luxury players.” For Frasers, the focus should be on enhancing The Webster business — not shaking it up too much, he says.
It’s an opportune moment nonetheless. While the multi-brand environment is struggling in the States, it’s not stopping brands and retailers from embarking on regional expansion. (Printemps, for instance, opened earlier this year.) Doing so in partnership with a store that is performing above the norm is smart, Ramírez says. “If this is a sign of Frasers Group getting into the US market — as many brands and retailers seem to be doing, despite the macroeconomic and political background — it’s a smart way for them to expand into the US with someone who’s already been here and has been running a business and dealing with the consumer and understanding how business is done here,” she says.
Saunders agrees. “It’s a good way to test the waters in a gentle way,” he says. “This will not transform Frasers in the US, but it’s a starting point for their ambitions in US luxury.”
For Dubreuil’s part, she’s keen to fill the gap that’s emerging in US multibrand retail, for a solid, go-to department store. “It’s been my driving principle since founding The Webster in 2008,” she says. “Clients still desire the in-person experience and the relationship with their stylists; it is both luxurious and comforting. We have already bridged this gap, especially in growing cities like Atlanta and Austin, which have seen tremendous growth in the last 10 years. Our mission is always to go where our clients are, and it’s this that keeps us in the running for this role.”
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